need advice about credit card debt and bankruptcy?
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ok i got like $10,000 credit card debt from like real estate scams and so on. i been paying minimum on credit card debt and my saving account is almost dry. and i’m unemployed now and no money coming in. i can’t even go back to school for a degree because i’m so tied up. is bankruptcy a good option for me? when would i be able to get credit card again after bankruptcy? when would i have option to get mortgage for real estate after bankruptcy? how difficult is it to get good credit after bankruptcy?
Go wash pots in a restaurant. Do double turn. I could find you a job doing that in the next 30 minutes.
Grab the phone book and phone everyone. Kitchen Porter is called.
In a year you have paid your debt off.
Or be bankrupt.
Bankruptcy may in fact be a good option for you if you are in over your head.
It does do some damage to your credit, of course, but it is still possible to obtain credit cards, car loans, and mortgages after bankruptcy.
There are many credit card companies that will give you credit right out of bankruptcy, like Household (or HSBC) bank, Orchard Bank, and Capital One. They probably won’t be high limits, but responsible use, they usually increase over time.
I’ve heard many people say that car dealers are often able to get them financed one day out of bankruptcy (Ford in particular).
Mortgage lenders most likely will want a couple of years of re-established credit before approving a new mortgage.
You might want to look at some information on bankruptcy: http://bankruptcy.lawyers.com/Bankruptcy-Basics.html
Also, most bankruptcy attorneys will usually give you a free consultation.
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Your debt total is a bit low for an easy answer. Try just defaulting and focusing on getting that job. With a decent job it’s easily paid off. If they eventually sue only then does the bk make sense.
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http://www.bkworker.blogspot.com/
Bankruptcy is not a good option for anyone. Bankruptcy is never good; although it is not the worst option (which is suicide), it is still a bad option (just not as bad as suicide).
You might be able to get a secured credit card after bankruptcy, but only if you had some money. Without money to deposit, you cannot get a secured credit card. Other types of credit cards are not available until several years have gone by and you have good credit from paying some other debt (such as a secured credit card). Mortgages are not available until the bankruptcy is removed from your credit report (which takes either 7 years or 10 years) and you have good credit from paying some other debt (such as a secured credit card).
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What keeps most people in debt is the fact that they keep spending more money than they make. They look at the "monthly payments" instead of the total debt loan that they are carrying. People need to stop spending now and concentrate on becoming debt free. Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. A bankruptcy will demolish your credit score. It is not worth the cost or the aggravation to file bankruptcy for $10,000. It will negatively impact you for years and can have a negative impact on your job search. The best thing that you can to help yourself is to start generating income. Get part time jobs, several, if you can’t find full time. Or start your own business, even if it is cleaning houses or doing yard work. Any legal work will do.
Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn’t as hard as you think. Just follow the plan
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look, you are in cc debt for over 10 g, file chapter 13 and start over with a new life.you will never pay off this cc debt as they will suck you dry. Just bite the bullet and file,you will breathe a lot better
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You could try Consumer Credit Counseling, but I found in the past that it was not that helpful and cause what they call a SLOW PAY Credit history.
I filed in 2002 for bk and it really has not stopped me from doing anything.
You can not file bk on any student loans or court ordered payments of anykind.
However, Payday Loans, credit cards and others are ok.,
If you own a car you can RE AFFIRM that loan or let it go back if you can’t afford it.
If you want I suggest Attending Financial Peace University, through a local Church….see Dave Ramsey.com or Read a Dave Ramsey Book called Financial Peace.
This will help before or after BK.
You will have to pay higher interest rates after BK, so use that as encouragement NOT to ever go into debt again, but yes you can get credit, it will just cost you more for 10 years.
I have 3 credit cards that I manage wisely today and that is IT., One is for my job one is personal, and one is for large purchases for my home.
That is it. I keep them in good shape. I was very glad that was the only debt I had when I became unemployed.
Good Luck and Cut up those cards. CHAPT 7
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Go wash pots in a restaurant. Do double turn. I could find you a job doing that in the next 30 minutes.
Grab the phone book and phone everyone. Kitchen Porter is called.
In a year you have paid your debt off.
Or be bankrupt.
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A the bb that’s me!
No, I would not recommend bankrupty over $1oK in debt.
GO GET A JOB! You can deliver pizzas, throw papers, etc. GET ANYTHING and start bringing in money.
Then Pay MORE THAN THE MINIMUM. You should ALWAYS pay your bill in full when it arrives. If you had done that in the past you would not be in this mess.
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