Should I consider bankruptcy as an option
Date: Sat, 08/13/2005 - 14:39
I have a friend - lets call him John,since thats his real name - ha ha - who did the bankruptcy thing last year, erasing his huge credit card debt. A breath of fresh air for him, and he still was able to purchase a new home with his new wife a number of months ago. His credit card debt was way worse than mine, and mine is close to $60K.
We have been hit with mega med bills, even with our Blue Cross Insurance, but still have copays and deductibles and prescriptions up the wazoo to deal with. What little breathing room we had at one time is all but gone.
I'm not against the idea of using the bankruptcy, but my wife isn't in favor of that option. I think part of that would be related to the fact that her dad used to be a financial planner/insurance salesman, and she would be embarassed to have them find out what we did. We still have some cash value in some life insurance policies, as well decent money in retirement accounts, which we won't touch. I think with the bankruptcy, they would take our cash values - not sure.
So you can see, it is basically at a point now where we need to make a decision about which way to go. My friend says I should take the cash values and put them in savings for the kids, pay down the mortgage, or something similar to make use of the money instead of losing it to creditors. he seemed to think this would be acceptable in bankruptcy court, per his experience. he said he was audited in his proceedings - claiming it happens to only 1% of the applicants.
Just wanted to vent a little and solict any advice from anyone with similar conflicting spousal opinions.
Hi bruwiley78 Welcome to the forums. I also suggest you not t
Hi bruwiley78
Welcome to the forums. I also suggest you not to file for bankruptcy as it creates a negative impact and stays in your credit report for a period of 10 years.
After filing bankruptcy, you will be able to acquire new credit after 2 years. During that time, your payment pattern will play a very important role in deciding the loan application.
http://www.debtconsolidationcare.com/avoid-bankruptcy.html
You should take the cash values and put them in savings for the kids. It is very important to make their future secure.
Since you said that you are behind in your payments, you should consider for some consolidation program as it will make your repayment easier. It will provide you the ease of making regular payments towards your debts with comfort.
Also, all the bills will be consolidated into one loan amount. Hence, there will not be any risk of missing particular payment in the current billing cycle.
The consolidation program will be more helpful in recuperating from the present financial situation and make you debt free within a quicker time.
Regards
Roxette
confused.
Thanks for the reply, but it seems that out of one side of your mouth you are saying "don't decalre bankruptcy, but on the other side you are giving me advice should I do that.
Should I liquidate the cash values with either route and put them in the kids's savings. Which would be better (more secure from scrutiny and creditors)savings vehicles, a passbook savings or a currently existing ROTH IRA?
My wife also has an old life insurance policy, which we took out a loan against (cashed some of it in.) To me it is stupid to pay back this loan, especially in this cash crunhc. It still has about $2000 cash value. Should we just close the account and take the cash and invest it in something? Again, it stands the risj of being lost to creditors, especially with a bankruptcy case.
I am not behind on any credit card bills, but have outstanding medical bills and tax stuff looming... I'd prefer a debt consolidation feature for everything, and would like to refinance the home at one of the current low rates. The house is valued at about $125,000, we owe 80K and 15K on our mortgages. We tried to get more out the bank when refinancing, but they had rules about how much equity we had to maintain.
Mainly I am waiting on debt consol people to return my calls and give me some good news. We bring in about $4500 a month net - maybe a little more and also put $500 or so into our 403b's each month.
Hi bruwiley78 Welcome back. I don't suggest you to file fo
Hi bruwiley78
Welcome back.
I don't suggest you to file for bankruptcy. But I have received queries from the people asking if they can be able to acquire new credit after filing bankruptcy. I was trying to focus that point if you consider it as your last option. I still will not suggest you to file for bankruptcy.
Considering your kid's future, you should decide in such a way so that your savings do not go out to pay your mortgages and medical bills.
The consultant will be replying to your call very shortly and offer you some of the suitable options to make you debt free quicker.
Regards
Roxette
Debt Consolidation
My wife and I have run up over $40,000 in debt, mostly revolving credit. We are now faced with the problem of loss of income (from my monthly bonus, which went from $800-$1000 per month to $150-$200 due to poor business conditions). We are not yet behind on any bills, but are teetering on the edge with all of them. We have both taken 2nd jobs, and both work up to 80 hours per week, but I am 54, and she is 47, and we can't keep up that pace very long. Please advise.
Hi caseyjr8706 Welcome to the forums. Looking into your curre
Hi caseyjr8706
Welcome to the forums. Looking into your current situation, I will suggest you not to stress yourself out and try for a consolidation program. This will ease your debt related problems as you will be offered lower monthly payment plans.
As you are not behind in any of the bills, this consolidation program will continue to make payments towards your debt and hence after the completion of this program, your accounts will be shown as "Paid in Full" in your credit report.
http://www.debtconsolidationcare.com/benefits.html
You can also enter into a free counseling with this website and get in touch with the consultant who will be working in your program. He will offer you various options on the consolidation program and thus, erase your debts in a considerable portion of time.
Regards
Roxette
Folks, Bankruptcy is not a bad thing. I was discharged back i
Folks,
Bankruptcy is not a bad thing. I was discharged back in June. Granted its been tough to get any type of loan right now, but its not the end of your life. Here is my advice.
Since Im from the south, Ill say this: you aint never gonna be able to back 40K in CC debt. Declare BK, get it over with and start fresh. But you have to move fast. The new BK law takes effect Oct 17 2005 and in essence will eliminate Chapter 7 BK.
Before you file, make sure you do the following.
Make sure your car is in good working order and that you are up to date on your payments
Make sure you current on your house.
If you have a CC without a balance on it. Dont include that one in the BK. Call the company and lower the limit to $500. This will help once you are discharged.
Do not take any Payday loans after you are discharged. If you use a Payday company. Use PayDayOK.com they are very very very reasonable. Almost like online CC company.
Filing BK is not that bad of a thing. I know it may be a pride thing, but mortgaging your kids future to get out of the mistakes you made isnt fair to them. Get a fresh start. It will be tough for the first few years after you are discharged, but you will be able to save money for your kids instead raiding their college savings.
Also get with a credit repair firm like Lexington Law. They have helped me delete over 6 entries off my report. Including a 30K home equity loan that I had on my BK. It takes time, hard work, and a lot of patience but if you prepare for BK you come out looking alot better than before you filed. Plus, if you have that much CC debt, your credit is already screwd.