What should I do I am 23 yrs old with $40,000.00 debt, should I file for bankrupsy?HELP!!?

Question

Hello I am a 23 yr old student. I have managed to rack up $40,000 in debt, i have bill collecters ect calling me, i finalluy decided to get a credit report. I found out I owe 40 grand. What should I do? Can I even file for bankrupsy I know there are new rules about that. Or should I try to pay it little by little, i dont know what to do!!

Thank you!!!

Answer 1

You didn't get into this much debt in a short period and it won't disappear quickly either.  Suggest you find a counselor to help you see the choices.  Bankruptcy is not a nice thing but it is one choice.

Be sure you don't charge anything more.  Work from cash until you get your financial life back in order.  

Answer 2

http://debtcash.blogspot.com/

Answer 3

Ultimately it is your decision. However, you can file bankruptcy but I would not recommend it.  If there is any way for you to pay even a little at a time this is definitely the best thing for you to do.  The bankruptcy stays on your credit report for 10 years and trust me when I say it will haunt you. I did file at a young age myself and have regretted it every since. I know that 40,000 sounds like a lot to you but it is small potatoes compared to many many others.  Stick it out if at all possible and good luck!

Answer 4

Filling for bankruptcy won't help you unless you can put limits on your spending habits.   Think this out,  you need to see what the debt is, NOT how much is it worth.  Avoid locking yourself into a cycle of trading today's debt with tomorrows debt.  23 is way to young to owe that amount of money without good reason.

NOTE:  If that debt includes student loans remember you cannot bankrupt out of it.   Those loans are exempt from default.

Answer 5

Talk to your creditors and find out what they are willing to do for you.  You never know unless you ask.  

Answer 6

ok im not sure where you are but i suggest legalhelpers.com go on there you take a questionair and they take it from there! I would say file bankruptcy now Im 22 yrs old owed close to $20,000 in debt and couldnt possibly pay it back even if i continued to work my *** off! i met witht them and its done. I figured its better now then later because in 3 yrs I will qualify for a mortgage and or I can get a rent to own now. but most importantly i learned my lesson I dont have any credit cards not because i cant get one because i can but because i learned to spend with in my means and well every one messes up! but def. speak to someone even if its a debt consolidator, bankruptcy attorney, or if you start to pay of your debt by your self act now dont ignore it, it only gets worst!

Answer 7

you might want to stop paying for services that you dont NEED like the internet.(unless you went to a library or got free access from someone else