What should I do? bankruptcy or not pay?

Question

My husband and I can pay all of our bills but one..that bill will leave us in the negative every month. We do not splurge, we both work endless hours. We do not go out to eat etc. We know we're in over our heads and we've STOPPED using credit cards and haven't for the past 6 months. My husband and I took on this debt while he had a high paying job and he got layed off due to our wonderful economy and found a job but makes less money. Needless to say we can't pay one bill.

In our state there is no wage garnishment. We could file bankruptcy but that will destroy everything or we could just not pay this one payment and continue paying on everything else as agreed. How bad will this effect our credit by not paying one bill but holding our end of the deal on everything else. This bill is for a 27,000 line of credit w/ a 15.99% interest rate w/ a minimum payment of 502!! It's killing us!! :( We just had a baby on top of all of this so our expenses have gone up. Help!?

Answer 1

guess credit is a scamm made by the banking sysytem go to youtube and type in " banking system scam" and youll see that many people have uploaded videos that say loud and clear how the banking system is made for you to fail ang go bankrupt just watch it youtube.com

Answer 2

i think you need to ask for help..

jsut untill you get back on your feet, because either way, it is going to give you bad credit..

ask relatives for help..

good  luck!

Answer 3

hi Cams mommy!

My name is aaron and i own a debt credit consultation business. we are actually an alternative to bks. Please do not file for bk there is no reason to if you have nothing that is going to be repossessed.

Give me an email at [e-mail]. I would love to have a discussion with you about how to get out of this mess.

Remember everything is solvable

Aaron

Answer 4

Bankruptcy should be your last option as bankruptcy will remain on your credit report for more than 10 years and if the individual is listed as having filed for bankruptcy, it results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. During the period of bankruptcy and after bankruptcy you would face difficulty in getting loan, purchasing and leasing and building your credit.

I would suggest before that you should apply for a debt consolidation program. The debt counselor in this program will help you in managing and paying off your debts. There is also program know as bill consolidation specially for bills consolidation.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

Answer 5

There may not be wage garnishment, but you may have garnishment on bank account or they may be able to put a lien on your home.  You have a few options.  1.  Call the company and ask about a payment program--maybe they can lower the payments, the interest and stop the late charges.  2.  Settlement--I generally don't recommend this, but due to the fact that the balance is so high, it may be a good idea.  They may not agree to it, due to the fact you are paying everyone else, but ask about it and if they agree, ask for it over a period of time.  This does affect you as far as taxes also, due to the fact that whatever amount you do not pay per the agreement, is written off and anything over $599 of the amount written off is reported to Internal Revenue and they consider that income, and you will be taxed on it.  It also affects your credit negatively.  3. Do either of you have a 401 at work that you can borrow from?  The payback on the 401 would be less than what you are paying now, and with the 401 loan, you are paying yourself back, generally with a lower interest rate.  4.  Refinance or equity line on your mortgage--could combine all your bills and payments are generally smaller than what you owe to the creditor for the $27k loan.  5.  Consolidation loan--get a loan to combine all your bills and pay the loan company monthly--won't be as high as you are now paying collectively.  Good Luck!   ***