Bankruptcy

[dabuddha]

Originally posted by: Jzero

Originally posted by: notfred
I remember someone on here starting a thread about going into bankruptcy over a single debt of $2000. He got flamed a lot.

I thought that guy got flamed b/c he also wanted to finance a brand new car and THEN declare.

Yep

 

[conjur]

Originally posted by: malak

Originally posted by: Freejack2
Let me guess you've got a domestic?
I'm $2900 and change from paying off my car and until this month I had negative equity in my car. Technically if I went to trade it in I'd still have negative equity as with the miles I have on my car means a dealer won't give me KBB Trade-in, only Auctionet average value which is $1800. Even by the time I trade the car in around August I'll only have about $300 positive equity unless I sell it private party.
I love this car and it's reliability makes a Toyota look like junk, but because it's a domestic it's resale value quite plainly sucks.

Unless I miss my guess your car is probably flipped around 4-5 grand? I'd say give credit counseling a call, they can work you up a plan which may help you a lot. It's no charge and you're not obligated to take their plan.
If you can stave off the bankruptcy within a few years you'll have your credit back in order and instead of looking at car loans that are 3 to 4 times the interest rate and home loans that are 50% or more higher interest rates, you could be looking at 5-6% interest car loans and home loans maybe only 1/2 a % higher than perfect credit interest rates.

You may save money now, but odds are in the long run that bankruptcy will cost you far more than you filed for.

Any recommendations on credit counseling firms? I've heard of several. I'd like to see more info on them too, like how it works. The idea here is to fix mistakes, not make more, so whatever can help me and not hurt me is best.

Avoid them like the plague. They will destroy your credit history. You can do it on your own.

Poke around at http://www.creditboards.com or http://consumers.creditnet.com/straighttalk/board/

 

[redly]

boo on credit counseling.
first off, it's not totally free. You go in, they examine your debt, tell you a repayment plan, and then say...would you be comfortable paying $xx to us for managing your debt. Then, what's obligating them to take your payment and actually pay it to your creditors? I've heard of numerous occasions were they make late payments or none at all.

AND, when you go into these "credit repair plans", it actually hurts your credit rating because the creditor is either not recieving any interest on the money you owe, or they are only being paid back a fraction of the debt you owe (it's how the credit counselors negotiate those easy to afford monthly payment). From what I got out of it, it just seemed like a big scam and more of a black on on your credit than a BK. The exception being that the dings on your credit will come off your credit report in ~7yrs or less instead of 10yrs that a BK stays on

 

[StageLeft]

Definitely somethign to be said, as Conjur did, for trying to contact creditors yourself.

 

[CTrain]

From little that I've heard about your situation, you're no where close to filing BR.

I had serious thought about filing long ago but I'm glad I never did.
I just graduate from school. No job and didn't think I was capable of getting a job.
Moved back with my parents.
Had about $20K in CC debt.
Only thing I had was a beater....worth maybe $1500.
Then some drunk guy slammed my car from behind and he had no insurance.
I was like taking cash advance from one CC to pay for another.
All my CC was near its limit.

I finally got a semi-menial job and I was like "I'm never going to pay all this off"
I was going to file but a co-worker said something to me that changed my mind.
Hes like "its just like you're stealing that $20K"
From that perspective, hes absolutely right.

BR is for really desperate people.
People that got disabled, people who have alot fo debt and lost their job.

You got a car, you got a job, you're able. and it seems like you're not that much in debt.
The simpliest solution would be for you to get a second job.
Even if its a menial job, $125 a week= $500 a month.
Seems like if you were to do this for a year, you could get our of the situation you're in.

 

[kyparrish]

Originally posted by: CTrain
From little that I've heard about your situation, you're no where close to filing BR.

I had serious thought about filing long ago but I'm glad I never did.
I just graduate from school. No job and didn't think I was capable of getting a job.
Moved back with my parents.
Had about $20K in CC debt.
Only thing I had was a beater....worth maybe $1500.
Then some drunk guy slammed my car from behind and he had no insurance.
I was like taking cash advance from one CC to pay for another.
All my CC was near its limit.

I finally got a semi-menial job and I was like "I'm never going to pay all this off"
I was going to file but a co-worker said something to me that changed my mind.
Hes like "its just like you're stealing that $20K"
From that perspective, hes absolutely right.

BR is for really desperate people.
People that got disabled, people who have alot fo debt and lost their job.

You got a car, you got a job, you're able. and it seems like you're not that much in debt.
The simpliest solution would be for you to get a second job.
Even if its a menial job, $125 a week= $500 a month.
Seems like if you were to do this for a year, you could get our of the situation you're in.

:thumbsup: to what CTrain said...

malak, I asked you a few posts back about a 2nd job, and never really heard a response. Why not go work at the grocery store or Blockbuster on nights/weekends and dedicate yourself to sending that check off to your CC's every month? It will suck at first, but eventually, you'll be paying more towards the principal, and you will start to see light at the end of the tunnel!!!

 

[intogamer]

Originally posted by: malak

Originally posted by: notfred
I remember someone on here starting a thread about going into bankruptcy over a single debt of $2000. He got flamed a lot.

I had 10x that by the time I was 19.

:shocked:

 

[Malak]

Originally posted by: kyparrish
malak, I asked you a few posts back about a 2nd job, and never really heard a response. Why not go work at the grocery store or Blockbuster on nights/weekends and dedicate yourself to sending that check off to your CC's every month? It will suck at first, but eventually, you'll be paying more towards the principal, and you will start to see light at the end of the tunnel!!!

Actually I'm looking at getting a different serious job that will pay twice as much. If I get that, I can start paying things off. But getting a job in this town is hard