Should I file Bankruptcy?

Tasha--Bankruptcy should be the very last option you consider. Try consolidation or settlement first.

Bankruptcy should be considered carefully and a last resort. Since they changed the bankruptcy laws, it's not as easy as it used to be, plus, the long tern effects have to be dealt with...Karen

What are my options....

Im tired of bills

I agree...Definitely check out all of your other options first. Bankruptcy will be on your credit report for a very long time.

I hate to be the bearer of bad news, but you will always have bills. The point is, that we learn from our mistakes and not repeat them and fall into the debt cycle again. I always have had, and always will have bills, but , through the people and this site, I have learned responsible ways to handle my finances, and not make the stupid choices I made to get me here...KAren

Tasha...Try consolidating your debts. Reduce any unnecessary expenses.

One technique that many people use is to write down every time you spend money. At the end of the week, look at it and find out what you are spending money on that you shouldn't be.

Keep a strict budget plan. Write it all down, or create a spreadsheet.

You're going to have bills for the rest of your life...Bankruptcy is harsh, and expensive to do. It would probaly cost more to file than what you're behind.

Another thing you should consider . . . . Bankruptcy is not free. To hire a lawyer costs around $1,500, and the filing fee is around $300, so it could cost you almost $2,000 to file . . . . It is not a quick fix and should only be used if absolutly necesary. On the other hand, I am about to file because I have no other choice. But if I had any other option I would gladly take it!

If your situation demands, you will have to consider bankruptcy in any way. But before you do this, make sure that you have gone through all the options and realize they are not going to help you.

You will have to undergo credit counseling and qualify in the means test before filing bankruptcy under the new laws. So, debt consolidation is the available option to begin with.

Tasha,
I filed Bankruptcy in August and if I had other options I would have defiantly gone with those. I had to spend $1200 for my bankruptcy, $30 for the class and $50 for the Debt evaluation. My bills were completly out of control and I tried Consolidation for years. I'm not saying consolidation does not work. I just got caught up with the wrong consolidation company and I spent a lot of money for almost three years and not one bill was paid off. (This company is now involved in a lawsuit.) My bills kept piling up and up and I kept getting further behind when I was moving around and trying to get a good stable job. It just got to the point where my bills were so far behind that half of my creditors did not want to accept another consolidation program. Then I started to get notices of judgements and creditors that were going to sue me and after a long time of thinking and seeking counseling my only option was bankruptcy. I couldn't afford to have my wages garnished with all these creditors, it would have just put me further behind. If your situations is not very bad then I think you could avoid bankruptcy. You need to put yourself on a budget and come up with a plan and some attainable goals to get these bills paid off. Maybe pick up a second job, do without extras for awhile, lower cell phone plans, no cable, no eating out...anything that will free up extra money.

Okay i want to cosolidate but i dont thin the creditors will accept the proposals.... Moneymanagemnt quoted me 96 a month with major debt that i have ...

$96 a month...just so I understand this...is that what your monthly payment would be for all your creditors total or is that their fee? What is your total debt and did you include everything into the program?

Tasha if it will cost you $96 a month to consolidate your bills, get them paid off in due time and if that includes the fee for the consolidation company then I would go that route, Bankruptcy is the final straw and I think you should really think hard before pulling on that straw. Good luck and keep posting

Tasha, It is a serious thing to file bankruptcy. But if you are in debt so bad that you cant handle it then maybe it would be an option. I would talk to a debt counselor first like you are doing and try to work out something. Remember it cost to hire an attorney and it cost even after its over. You will pay more for anything. Especially car loans with high interest. Like Karen said you will always have bills as long as your alive. Best Wishes KYSIDE38

Tasha, I would recommend that you read my blog. I filed in 2000 and trust me it was one of the toughest decisions I ever had to make.

As most know i am a stress alot over things... well this weekend i moved and found some old w2s they were under 600.00 but i did not find one from this one job... so i dont know how much it is... this eased my mind a lil....Moving is so much work... hopefully i get some deposit back... :lol: Also I called the Irs and gave them my new addresse. God is so good... 8) I am blessed and am greatfull for what I do have.

Also, most lawyers want some kind of fee upfront plus the filing charges so, depending on the lawyer, you may need a couple hundred to a couple thousand up front. Funny, you file bankruptcy to get out of debt, but you need to save the money first to file bankruptcy. It really IS a last option.

Yes, if you can avoid getting the attorney and filling out the paperwork yourself (I wish I would have done it myself), then that will save you some money. I would highly recommend that you look at your alternatives before you consider bankruptcy.

I called around and met with a few people before I chose my bankruptcy attorney. I found a really great one that allowed me to pay him in installments. He filed my paperwork with only half of my bill paid. Then I paid the remaining in two installments. If I would have felt comfortable filling out the paper work myself, I would have done that...it's a lot of work and you have to be real careful about it.
Bankruptcy is a huge decision and I tried everything before it came to that, but it was my last hope.
I defiantly agree with Alexandria, I would look into every alternative possible before making the choice to file.

It will not cost you nowhere near $2000 to file. I just filed last year and my out of pocket expenses were only $700 total. It is a last resort, and should be considered carefully. There are negative effects, but they are not dyer. I just recently bought a car and a house just 10 months out of bankruptcy. It does not completely ruin your credit.

Justin was it 7 or 13? I've seen some 13's where the attorney has gotten $2-3K and the trustee got about $4K. These weren't up front costs, but were paid through the term of the plan.

I've also seen some people go BK and then turn around and get sued by their bankruptcy attorney for non-payment.

I filed chapter 7 bankruptcy and it cost me $1300 total. That was pretty much the figure I got from a few different attorneys before I chose one. Then it cost me $50 to get an evluation with a certified debt counselor. Then it cost me $30 to take the required financial class. So it pretty much cost me $1380 to do my bankruptcy.

When I filed in 2000, I paid I believe $500 or $700. But I really didn't see anything that he did to require me to hire an attorney. I now know better.