Credit Repair - Should I file for bankruptcy?

Should I file for bankruptcy?

I'm 27 and want to buy a house but I can't bc I'm about 10,000.00 in debt to about 15 credit agencies for random stuff and medical bills. I really can't pay them off. I just started to pay one company off and they never report payments being made. I have 2 cars and pay well on them but always have a high interest rate. I'm not sure how to file of if will even help. Does anyone know about this or could give soem good advice. I'm kind of worried about getting scammed with those credit repair people. I'm in Illinois also...and if more info is needed just ask and I'll add it on...thanks! oh yeah and I have 2 cars bc my husband has one too....I'm working and so is he, but we have to live ya know....plus a second job is out bc I have a child...and I'd probably be working to pay for childcare..

Public Comments

If AT ALL possible, don't do it!! Just do your best to pay things off, talk to a financial advisor or ask around for recommendations. The new bankruptcy laws no longer just wipe the debt clean, you'll still have to work to pay things back. It's not worth ruining your credit for it! Best of luck. Hang in there, I know it's frustrating!
you seriously ONLY own 10,000 and you think you should file for bankruptcy???? get a job. sell one of your cars. Pay off the company that has the highest interest rate first. On your medical just pay $5 per month...they can't come after you as long as you are paying something.
From personal experience if you do file bankruptcy file chapter 7... NOT chapter 13...Your credit can be restored in as little as 18 months with a chapter 7.
In my opionion, $10k isn't worth 7 years of crappy credit. But that is up to you to decide. You can't get a second job and devote the spare money to your debt? Why do you need 2 cars? Can you sell one to help pay off the debt?
WHY do you have 2 cars??? Sell one. Don't declare bankruptcy if you want to buy a house. You won't be able too. If you do find you are able too, you will be paying mega interest and will never be able to get ahead. Get a part time job, get rid of the other car. Find a way!
avoid bankruptcy for as long as you can. Try to do some credit councelling and they'll have lots of ideas for you. The one I'm thinking of is go to your bank and consolidate everything into one monthly payment. This will get the creditors off your back and probably help with interest rates. My bf and I were in debt $15,000 but we've been paying $700-1000/mo since consolidating (2 yrs ago) and now only have $3000 left. Besides that, it's important to keep a budget and stick to it as much as you can. Lay out priorities and set yourself a goal. It's a pain in the a** for the first little bit because you'll find that you'll have to make sacrifices but in the long term you'll be thankful you did something about it now rather than later. It will take time, but it's better to do it that way then to file bankruptcy. That would really hurt your credit.
Go to a reputable counseling service. They will be able to tell you if Bankruptcy is even an option for you. They will also be able to tell you (if they don't do it) were to go to have money counseling . These people will contact your creditors and make arrangements for payments that you can afford. either way you will lose all your credit cards. It is truly best to try and pay off the debt. I which you luck
Ok, he is how it is . Consolidating your bills those people are not scammers. My g/f brother is doing the same thing just make sure before you do anything though. There is just nothing more to say about that. But don't file bankcruptcy just to get off of it. Pay payments get it done. Don't take the easy way out trust me.
no, you should not file bankruptcy. It stays with you for 10 years, which means you wont beable to get a mortgage. If you think you can afford a house, why cant you afford your debt? Just curious? You need to sit down and make a budget, and work really hard till your debts are paid off. P.S. 10,000 in debt isnt that bad.
Filing for bankruptcy is serious stuff. But having debt that you aren't able to pay off is also serious. I highly recommend finding a Debtor's attorney and having a talk with them to asking their advice. Doing a search on Yahoo! or the Yellow Pages should help you to find them. They will be able to tell you if filing for Bankruptcy is your best option. Also, there are several "chapters" to file bankruptcy. For example a chapter 13 allows you to come up with a Plan to pay off your debt and a chapter 7 can allow you to sell/surrender stuff off until you are paid off. Be careful though, it may happen that your creditors can get permission to foreclose/repo your house and cars if they can prove that you have not been or have no intention of paying them. Your best bet is to call your creditors to let them know what sort of situation you are in. It is always better to be up front with them because once your account goes to collections, its already too late. Again, please find a Debtor's attorney who can advise you
Could you sell one car and buy a cheap used one that you wouldnt need to make payments on? Also, DO NOT go with the credit repair companies. I work in bankruptcy, and I see alot of people get screwed over by that. Also, if you do file, you arent supposed to incurr new debt. You would need a court order to buy a new house.
I would not file for bankruptcy cause it will make your score way lower for many years and if you have to start a new job it will show on there to and they might look down on that. Go ahead and check out a few Credit repair companys i had an old friend who did it and it worked i cant remeber the name though. Just make sure its a big named company you can trust not some avergy joe. But do it you will have it done in like 3 years. Please dont clam bankruptcy
My personal opinion, filing for bankruptsy is simply "stealing" from some one! You obligated yourself and promised to pay for the merchandise when you bought it, only to tell them to "take a hike" when it comes to paying for the "said merchandise"... Now, if your Gas or Electric Company called, you wouldnt even "think" of doing that to THEM! So, why do it to others? Sell a car, and start by paying off the smallest bills first. Sell both cars, and get something that you can reasonably afford, (just better than a junker, but runs good). This will eliminate the car payment and help pay off a credit card if you can get enough for a car, if not, then take the loss and just sell it for what you can to get out from under the dept. After you pay off the smaller ones, then work on the larger ones. Move if you have to! Get a smaller apartment or house! Anyway you can economize, then do it. After you pay all your bills off, you can always "bump up" after you have a healthy nest egg first! (Always start to save some, when you can, and have at least 6 months in the bank for bills, in case something goes seriously wrong and you cant work! I know, its hard, but, thats how I did it, and I had 25,000 dollars worth of credit card payments and I buttoned down, scrimped and saved and paid it off in two years! I didnt have a vacation in that time, but, once I was out of dept, I was happy!). The only thing you get for "interest", is a "thank you", and most credit card companies wont even give you "that"! I wish you well... Jesse
No!!! $10,000 in debt is nothing. But my question to you would be if you are not doing well with paying off your debt then what makes you think you can keep up with a mortgage payment? Did a lender deny you becuase of your debt? It's not so much debt as much as a poor credit rating. One person can have way more debt than you and have no problems getting what they want because they have a good credit score. But this is only true if you have a good debt to income ratio which means that after you have paid off your monthly payments how much do you have left over to play with? If not much then a good credit score will not always cover things up. My advice to you is this: 1) Figure out your credit score if it's decent or bad it will improve by making payments on time 2) Figure out how much money you have left monthly after you pay your monthly bills 3) if you have extra money (this does not include food and basic necessities) then start paying off the debt. If you don't have any money think about how you can free up some cash like one of those cars. Do you really need two? Anyway just remember there are many factors lenders look at when you buy a house: How long you have held your job, credit score, debt to income ratio, and if you have any down payment. Good luck try anything but don't file for bankruptcy you have so many options you just haven't explored yet.
ok, a a BK should be your last resort, it can remain on your report for up to 10 years, it could also make it difficult to get a loan with good rates. Thalk to a local credit counselor, get a budget. Start there.
We're going through bankruptcy right now. I think the best thing to do is talk to a bankruptcy lawyer and get his opinion. We almost went to one of those credit repair places and their is no guarantee that they will make your payments BEFORE they get your money. Our lawyer said if you owe under maybe 3000, it might work. I checked some out with the BBB and did not find a decent one to work with. We talked to our lawyer and he said we may get out of paying or may have to pay a smaller amount back then what they credit places want. Either way, credit wise you are screwed. I did hear that filing makes it easier to get a house loan but it maybe at a slightly higher rate(told to my son when he filed bankruptcy) talk to a lawyer, most of their first visits are free and they will help you decide. #####to Woodwork, everyone has different circumstances, I too am in debt for very high medical bills, my daughter's funeral, and me off work to a disability: (all happened in a 3 year period) even after exhasting our savings and such. Some people try and things happen. A year ago we had a credit score of 760, now it is 628
I wouldn't be to worried about it, I did a search and found this site that explains in detail about this same issue, check it out http://www.mintcreditrepair.com , excellent articles also.
heheh. You want to file bankruptcy on 10,000.00 ???? Na, its not worth it. If your going down...go down big. 10k is not that big and Im sure you can make some arrangements to take care of it save your credit from a BKC showing up for 10 years. Oh ya, not to mention...you have to go to classes for like 6 months to qualify for BKC. New law. I would pay any price to stay out of some classroom. Dont know about you. Good Luck
Apply for Chapter 7: The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts. Once you file for Chapter 7 bankruptcy, the bankruptcy court assigns a trustee who works as an intermediary between you and the debtors. He oversees everything and checks out if the bankruptcy plan is going as planned.
I used Bradley Ross Law to repair my credit. I had a few late payments and a collection from a couple of years ago. It only took 5 months to get everything cleared at 2 of the credit bureaus and almost everything at one of them. My credit score went from the 690's to 740's in that period of time. I think paid around $60/ mth. Definitely worth the $300. No way should you even think about bankruptcy or buying a house right now. If you can't work a second job because of child care, you husband should. He can work at UPS in the mornings before his regular job, and make $12-$15 an hour. Then on weekends, he can watch the kids and you can get a job waiting tables. Use this extra money to pay off the $10,000 in a few months. Cut spending also. No movies, eating out, toys, etc until that $10,000 debt is gone. There is no quick fix to this problem. You and you husband will have to work more, and spend less until the debt is gone. Then sign up w/ Bradley Ross Law to fix your credit. You will be able to buy a great house at at great rate then.