Has anyone on here filed bankruptcy before? I’m meeting with an attorney tomorrow for a free consultation. We owe about 50k in credit card debt and can’t make our minimum payments. They are all harrassing us, and rightly so, we owe them money. I just don’t see how we will ever pay these off and wonder if we just need to do bankruptcy to wipe them out and start over. Any advice or experience?
I have never and hope I can avoid it… employement willing..
How far off on making the minumums are you if Imay ask.?
Have you contacted all of them ask asked if they can put you in forbearance ( I think thats the spelling). If you can get them to do this it may give you the ability to catch up and get beyond this without bancruptcy.
I dont know your whole picture so that all I can comment on.. if you care to eleberate I am sure the forum would be glad to comment.
I did BK in 1989. My attorney told me to look at it as a business decision – my family ‘s money situation was failing. It is not easy – it costs money, and there is a court appearance, and lots of paperwork – and it affects credit adversely for 10 years in my state. However, it was also a tremendous relief – we made an attempt to pay and went to credit counseling services and tried to make the recommended payment but it was just not doable for us.
It limits your options if you are a renter, and it appears on your credit report when you apply for some jobs. Nowadays you have to get the counseling before you can even do it. So it is a huge decision. (I have this fear I will be forced to move and be unable to rent due to bad credit, so I am staying in my place that is expensive out of this fear.)
Perhaps you can still work with your creditors. Under the Fair Debt Collections Act, you can request not to be contacted at work – I get the address and send them a certified letter requesting not to be called at work. I changed my phone number as well, when I was getting way too many calls. But it may still be possible to negotiate with them.
I got myself in a bad situation again currently, but I don’t want to do BK again. So I enrolled with a debt settlement company, I send them money each month, an amount we (me and the company) thought I could afford, and when it accumulates, they try to get the company to settle. Just today one of my creditors agreed to settle. Also, I gave the company power of attorney, and direct all the phone calls to them – that gave me relief. HOWEVER, it is bad for your credit for sure.
But, in my case, my credit was shot anyway. And it can be scary – I was served with a judgement on one of the cards also. But I just sent the judgement paperwork to the company, and nothing else has happened.
For me it makes me feel like I am doing something about the debt, and I am paying the principal, not the (to me) trumped up interest charges. Just a thought if BK seems too enormous a proposition.
Curious what other people out there think about this video: