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getting desperate...should I file for chapter 7?

Date: Sat, 01/05/2008 - 20:49

Submitted by ladyappraisr
on Sat, 01/05/2008 - 20:49

Posts: 5 Credits: [Donate]

Total Replies: 3


I am new to the community and I have been reading the posts about bankruptcy and debt consolidation. I am at the tail end of a career change. I went back to college full-time and I work part time as a research assistant at the college. When I first started my career change I had good credit, but I am finding it harder and harder to make my payments. My interests rates on my credit cards have ballooned and I took out my first internet payday loan last month. That's when I knew for sure that I was in trouble because I have always considered them to be a rip off. I will be graduating this spring, but I don't think I can hold off the credit card companies any longer. I've basically been robbing Peter to pay Paul. Since I only work part time now and have about $17K in credit card debt, my debt ratio is very high which has brought down my credit score...even though I've been making the payments. I don't have anything in collections yet, but I will soon because I don't have the money to pay my bills for this month. I only make about $850 a month and my credit card payments alone are more than that. I have exhausted my savings which were helping me make up the difference. I just moved in with a family member to decrease my living expenses until after I graduate and my car is paid for. I've been researching debt consolidation loans, but with my income, my current student status, my debt ratio, and the fact that I don't have any assets (other than a 2002 car), I doubt that I will qualify. I will receive a student loan refund next month. It won't be enough to cover my debts, but it would be enough for me to pay a BK lawyer. I was hoping to restore my credit, but I don't think I can at this point. I don't want to have to stress over this for the next 30 years...it's bad enough that I'll have the student loans but at least the interest rates on those aren't insane. I know I can qualify for chapter 7...I don't have anything to liquidate, but it makes me nervous. Do you think I should just go ahead and file chapter 7 now or let the bills go to collections and pay them back after I graduate and start working full time again? Maybe I will qualify for a debt consolidation loan by then. Either way, my credit is going to be shot...


HI, i have problem with Cr cards debt too, made bad choices, used them to pay stuff in advances and finally piled up.
I think for that amt u should not go for bankruptcy. Bankruptcy is really the last resort to take. It will destroy your cr in the long run (maybe 10 yrs) and will affect employment, financing for stuff etc...I have hard time paying the minimum too. I'm considering debt settlement at this time. Read more on this website. They give u a lot of good info tt might be helpful. Abt Collection, i think they usually pass it to Collection if u're 3 months late .


lrhall41

Submitted by cutiebear112 on Sat, 01/05/2008 - 22:55

( Posts: 14 | Credits: )


Thanks for the advice. I will keep looking, but if I don't find something soon, I'll go the bk route. I'm tired of being stressed all the time...and even though they haven't sent anything to collections, they've already started will the non-stop phone calls. I can't keep using my entire paycheck on cc debt.


lrhall41

Submitted by ladyappraisr on Sun, 01/06/2008 - 14:44

( Posts: 5 | Credits: )