Avoid bankruptcy - 7 Reasons and 5 ways to avoid filing bankruptcy

i want my life back after divorce so much old debt not a lot of income

I joined a debt settlement company in December of 2008 to try to pay off my wife's 13,000 credit card debt. I am being sued and I already paid 5000 into the company plus I sent them 5,500 to settle out of court on a previous lawsuit. I just sent them 1,750 3 weeks ago to try to avoid this lawsuit for the 2,060 she owes and I am having no luck yet and my court response answer is do in 2 weeks. I still have 2 other people that can sue me and haven't been receiving any mail from them. I still owe the debt company 5000. Should I try to approach these debt collectors on my own?

Here is what I don't get. Everyone screams to stay away from bankruptcy. Why? Well, because, its a nightmare. Okay, if someone is looking into filing bankruptcy, are they not already in a nightmare? Also, everyone screams don't do it because of the whole "your credit will take a hit" argument. Well, once again, if someone is looking into filing bankruptcy, has their credit not already taken many, many hits? I mean, I know bankruptcy is a nightmare, but, for crying out loud, isn't also being buried in more debt than you can pay off in 12 lifetimes also a nightmare? And as far as going to court, well, that argument falls apart as well, because, most likely the person looking to file bankruptcy is headed to court anyway when the creditors come after them. In all seriousness, if bankruptcy is a nightmare, are you not just trading one nightmare for another when you do file? You can either have the problems of dealing with harrassing phone calls and lawsuits, OR the hassle of bankruptcy. Either way, are the results not the same? I am about to file myself, and I have friends who have never even had a credit card (somehow went throught life and did everything with cash only) trying to tell me that I'm screwing up big time. Well, newsflash to them, I have already screwed up big time. Plus, I refuse to listen to those who have never even been in debt. Good for them that they were smart enough to never make mistakes with money, but that was not the case with me. Guess I was absent the day they were passing out brains. So, my stupid @ss had to learn the hard way about money. I'm going forward with my attempt at bankruptcy whether my "perfect with money" friends like it or not. As far as the "living hell" of bankruptcy goes, well, I'm already there. I have seen it, lived it, felt it, been committed and placed on suicide watch because of debt, been hunted down like a dog in the streets because of debt, been ridiculed by well, just about everybody, been so broke, I have had to pawn things, you name it. So, I ask, what can bankruptcy possibly throw at me that I have not already seen time and time again?

Um, see, here's what I don't get. Ruined credit? Well, it's already runied! Too late to save it anyway! Lengthy court process? Headed there anyway! One way or the other, I will be in a courtroom, either because of a creditor lawsuit, OR bankruptcy!

To Cherbear, I say you should speak with a bankruptcy lawyer about your options. Many lawyers give free consultations and you could learn more about your options. While debt settlement has helped many people with their credit card debt, it may not help you get your mortgage debt under control. Dealing with debt is like anything else: You need the right tool for the right job.

I am about to file Chapter 13 becasue I am behind on my property taxes. My mortgage company has sent a letter saying they after 30 days they will pay the property taxes late property taxes and recent property and then start an escrow account. Can they do this and will I still be able to claim bankruptcy on the property taxes?

All I know is that 7 years after you stopped paying debt, it is wiped off your credit report, however, bankruptcy is on your credit report for 10 years and in general it is harder to rebuild your credit worthiness after filing bankruptcy. My advice is to avoid bankruptcy at all cost because for one thing 7 years is less then 10 years. There are situation where you just don't have to file bankruptcy, go to http://www.besthelpfinancial.com/bankruptcy.html to learn which situations you will not have to file for bankruptcy.

it is always better to avoid bankruptcy or filling bankrurtcy but sometime such situation arises that it get difficult to avoid any such situation in that case always get expert advice from a Bankruptcy Lawyer.
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just because you stop paying the debt, it doesnt mean it is wiped out. If that were true everyone would be okay. Some can run for awhile but it will catch up with you. Bankruptcy is not so bad. A lot of folks spend so much money trying to settle and then end up getting sued and everything else. Save your cash, file Chapter 7 and move on. As far as court goes, you go to a meeting with the trustee in a room with other people that are filing. You dont go to court per say unless you are being sued. File and move on with your life. I did over ten years ago. I bought a house and a car one year later. I get so sick of all the doom and gloom over filing. Some people dont have a choice!

you guys are cheaters when it comes to seo none of these comments are from real people

And how exactly do YOU KNOW this?

LMAO at some of these comments. you think that for 10 years after filing bk that you won't get ANY credit card offers? you'll start getting offers in the mail within a year? i also have a friend that is a mortgage broker and he said he has people getting almost rock bottom refi rates after 3 years of a bk. you people need to do more research.

I simply do not agree with the premise that "debt consolidation" is a better option than BK. And, I believe your reasons listed are patently false or at best misleading.

- Debt consolidation badly damages your credit. Most creditors report "not paid as agreed".
- You lose only the property you wish to lose.
- While not all debts can be eliminated, the most heinous one can be. The ones that cannot are generally owed to the federal government. ANd you can always "consolidate" these remaining debts after BK.
- Property will not be repossessed if you have a good attorney and plan ahead for your BK.
- Adverse effects on your finances? No credit? You mean that I can not run up huge debts again? Sounds like a GOOD thing to me. Also, "consolidation" prohibits you from getting credit as well. And, if you BK and now have free cash to pay your expenses, you can afford what you need. Credit scores are debt scores - they only measure your debt load. Debt free and cash available is the best way to be. And getting a home, car, or rental is easy when you can pay cash.
- Most states protect ALL retirement plans. Only those plans that get overfunded by people trying to game the system get hit.

I know you have an agenda, but you owe it to people to tell the truth - that debt consolidation is worse than BK for a LOT of people. At best, it has the same effect, with few of the benefits that BK offers.

Well... I won't agree with you fully, BTS. I have gone through debt consolidation. Things are not like what you've said. Though, initially my credit was affected and few points were decreased, but once I started paying off the dues, the scores started rising. Moreover, the creditors even reported the accounts as "paid as agreed".

I completely support this post. In Riverside bankruptcy is like something that people do because they have debt that they want to get rid of. It is such a bigger deal than people seem to think. Everyone has a story of their uncle who had a friend who filed for bankruptcy and then a year later they were running a successful debt-free business (BOGUS!!!) Think carefully before you file for bankruptcy. Very carefully. What I would like to know is when is a good time to file for bankruptcy?

When you're facing immense financial crisis and have tried out debt relief options in order to get rid of your debt and have been unsuccessful, then you may think of filing bankruptcy. However, it's better to not file bankruptcy on your own. You should always consult a bankruptcy attorney and then decide which chapter of bankruptcy filing will be best suited for you.