8mo preg. might file bankruptcy. age 22. bad idea?
I just turned 22 and i am in a situation where i am considering filing bankruptcy. Currently, i owe 00 on 1 credit card at 29% interest. 00 on another card with 15% interest. My car is paid off. And about 00 in medical bills. A grand total of about ,000. Is it worth filing for this?? Im 22, recently married, with a baby on the way. Were renting our own place and even just the minimums on my cards are killing us. Is this going to hinder my ability to EVENTUALLY get a newer car or a house someday? How much may filing price me? (im in illinois)
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February 23rd, 2010 at 1:03 pm
Personally i think this may not be a very good idea especially with a new baby on the way. When you file for bankruptcy you lose all of your unpaid credit cards, however you stop those annoying collection calls. Also if you ever think about buying a house after you file bankruptcy you may not be able to have a mortgage for another five years! Also after filing bankruptcy getting credit cards again will be a difficult task!
these are just a few points to think over!
good luck with your decision!
February 23rd, 2010 at 1:03 pm
I don’t think its worth it to file for bankruptcy. you don’t want that on your record for 7 years. just make payments on each thing even if its the minimum of each.
February 23rd, 2010 at 1:03 pm
Yes, it is a bad idea. But – hey – it’s your life. Don’t count on buying a house or another car for quite a while. I have no idea what it would cost to file. I would never shirk my responsibilities and file bankruptcy.
February 23rd, 2010 at 1:03 pm
Around $1000 – $1500 to file bankruptcy. You will be ok after 7 yrs.
But honestly, at the moment, NO ONE is able to get very much credit… Unless of course your credit is PRISTINE, which most of ours is not.
Note that when you try to file for bankruptcy, you will have to go to classes to learn how to pay bills, etc… and they will try to offer you other ways to pay down your bills, like sending you to a debt consolidation company before even accepting a bankruptcy case.
All i can say is if you do file bankruptcy, do it when you are young. It doesnt really seem like a LOT of debt, but I am not in your shoes.
February 23rd, 2010 at 1:03 pm
Stupid idea. About as bad as $13000 in credit card debt. Don’t do it, you will never did yourself out. Cut back on everything possible and pay your bills.
February 23rd, 2010 at 1:03 pm
yes you are going to have a tough time buying a new car or house or even you will not be able to get loan for 7 yrs then after that your credit report will not have nething on it nd then u have to start building your credit again. try to pay the minimums and call the credit card company to reduce the APR%, they might do that.
February 23rd, 2010 at 1:03 pm
http://ezinearticles.com/?Do-Not-File-Personal-Bankruptcy-Unless-Absolutely-Necessary&id=1647776
my grandmothers lawyer told her not to file for bankruptcy. evidently it can be worse for your credit then somethings can be.
February 23rd, 2010 at 1:03 pm
your screwed big time mama!
February 23rd, 2010 at 1:03 pm
Thats NOT enough to file for bankruptcy…..Just pay what you can and the minimum amounts …Good luck
February 23rd, 2010 at 1:03 pm
Very bad idea. Pay a little to each company each month until it’s paid off.
Yes, filing bankruptcy will hinder you getting a new car or house. Pay off the credit cards. Cut up the credit cards, and don’t get any more. Use ALL of your tax returns to pay your debts.
"Around $1000 – $1500 to file bankruptcy. You will be ok after 7 yrs."
Nope, not that easy anymore. It will still show that you filed bankruptcy. My parents did it 20 years ago, and every so often it rears it’s ugly head. It’s happened a few times since. My brother and his ex wife did it 10 or so years ago. Even after 7 years he couldn’t get a home loan.
Go to your local credit counseling services. They can help you.
Edit: These debts, are most of these wedding debts? You would do well to start advising young people to have small scale weddings that they can afford if this is the case. Starting your life off in debt is not the way to go. I would suggest marriage counseling as well, because this WILL affect the marriage.
Also, if any of these were just storebought items you don’t absolutely NEED, return them if possible, or have garage sales every so often, and any money you get is to go to pay off the debts.
February 23rd, 2010 at 1:03 pm
NO NO NO NO NO don’t do it, you need to contact a debt consolidation company and work with them in ways to lower the payments and make it th where you can have it paid off sooner. Im sorry your in this position but you really need to research what happens to people who file for bankruptcy you have other options please take one.
February 23rd, 2010 at 1:03 pm
Yes, and as you probably already know it effects your husband’s credit also. When you lease a car the interest will probably be sky high. If you file bankruptcy it will take about 7 years to build up your credit, but the good thing is that own your car, and rent. I say do before you get in deeper so you can have a nice place for you and your family.
February 23rd, 2010 at 1:03 pm
It is not worth it. You should see a credit counsellor pronto for some planning. They will try to see if you can do some consolidations so you can get a lower interest rate. They will also give you a lessened payment plan. The could settle your accounts and have them reduced. You just won’t be allowed to get credit for a while which is better than a Bankruptcy on you history.
You can call the credit card company and ask them to lower the interest on the cards. They are serving you. If that person says no, ask for their manager and ask again.
Since you are young, it seems like a good idea but it is not. $14000 is not a death sentence. When you go bankrupt, you should take thousands of dollars with you and that is not as much as you think.
Just see a nonprofit agency that can help!
February 23rd, 2010 at 1:03 pm
I think your best bet is to make an appt for a consultation with a lawyer. You can look in the Yellow Pages for bankruptcy lawyers, many of the them offer a free consultation.
my husband and I went to see one (but we had alot more debt than you) and they actually talked us OUT of filing for bankruptcy. Either way, they are the experts and they will know how to handle your situation. Granted, you need to be honest with them and leave your pride at the doorstep. They base their decisions on facts, so the more factual and accurate you are, the better they will be able to help you.
When you make the appointment, the clerk will tell you what all you need to bring with you, like bills, statements, proof of income, etc etc.
Good Luck!
February 23rd, 2010 at 1:03 pm
Try calling somewhere like credit advisors where you can consolidate your debt. You can make a smaller payment to them and they drop your interest on the cards.
February 23rd, 2010 at 1:03 pm
I can’t believe how rude people are. You’re ok.
You don’t owe that much, you just need to negotiate lower interest rates. Call your credit cards, be honest, tell them you are trying to pay off the bills and ask for a 7% rate. If they say no, call other credit card companies and ask to transfer to their card for a rate less than 10%.
Medical bills are usually easier. I negotiated a payment plan that was like $25 a month, no interest. Hospitals are cool They even have financial aid and charities you can apply for.
February 23rd, 2010 at 1:03 pm
omg don’t do it!! I am telling you it is a bad idea. My boyfriends mom did and she couldn’t get anything and when he needed a car she couldn’t even co sign for him. Then she had to sit and worry about what job to get because she didn’t want to have to pay them back a lot of money. I could slap her in the face for doing it because she screwed herself for 7 yrs couldnt’ get a house and still can’t and had to have her new fiance sign for a loan for the new car she wanted. There are financial places that can help you without forcing you into bankruptcy. This is life, and it is meant to be a challenge. But like the other answer said it is your life and if you want to do it then your going to anyway. You’ll get through this. It is just one of the many hard times in life and bankruptcy won’t really solve it.