effects of bankruptcy

It can be very difficult to get any kind of account, car loan, etc. after filing bankruptcy. It stays in your credit report for 10 years. Payday loans can be included. Because of the new laws that went into effect in October 2005, it is best to find a bankruptcy lawyer to help you through the process. You are now required to attend an approved credit counseling course in order to file bankruptcy.

This is definitely a last resort. Do not consider bankruptcy if you have any other options. Please look at debt consolidation first! It will have a positive effect on your credit report in the long run.

If you have any more questions, do let us know :) Hopefully I have helped answer the ones you did have.

~Mary

thanks for answering my questions. i dont plan on doing bankruptcy but i guess its always good to be informed. things have gotten pretty bad for me right now so i figured id look into it as a last option. how much does it cost for the whole process?

Glad I could help. I think it depends on the lawyer's fees. I have seen it advertised for $575, but that was before the new laws, I don't know if the lawyers are changing their prices because things are a bit more complicated. I have never personally filed bankruptcy, but I have considered it, just as many people here probably have...that is why we are here, to figure a way out of debt :) Keep posting and let us know how things go :)

~Mary

Payday loans can be discharged in bankruptcy. Chapter 13 gives protection for all the debts incurred prior to filing bankruptcy. You can do some research as well on ???the types of debts can be discharged in bankruptcy' and let us know what it says.

The cost of filing bankruptcy depends on the complexity of your case and the type of bankruptcy also. It will be better if you can consult a bankruptcy lawyer for this. After October 2005, it has been made difficult to qualify and expensive too. Keep us posted.

here are several types of debt that i found that are not discharged. any type of alimony, maintenance or support for a spouse or child, student loans, money thats was borrowed on false pretenses, most taxes, criminal fines, penalties and resitution, and also any drunk driving injury claims. ill do some more research and see what kind of debts are included.

This is true and thank you for pointing these debts out! It is important for people to know that these will not be included.

~Mary

the following link contains a good table outlining what is dischargeable

moranlaw.net/7discharge.htm

I filed Chapter 7 bankruptcy after my divorce four years ago. I have been able to get credit but it's always been at a higher percentage rate. It's something that I wish I would not have done. I've been able to build my credit back up but I think consolidation is a much smarter answer.

The long effects of bankruptcy also include giving up personal belongings such as tv's, dvd players, stereos. These are things that you cannot afford.

You also cannot start or manage a company, nor can you run for office.

You may also be asked to close your checking account. Depending on the discretion of your financial institution, if the account is to remain open, you are to turn in your check book and only a savings account can remain open.

You may have to sell your house if you own one.

I would recommend speaking with a bankruptcy attorney and listen to what all the effects are. There are several things that could impose a heartache to you sometime down the road. Also consider debt consolidation, if you already haven't done so, as that will help you to a debt free life easier.

Regards-
Mike

Thanks for posting this Mikey! Its not quite as simple and 'clean cut' as some try to make it sound.

Before you consider bankruptcy (which will discharge most of your payday loans, depending on when they were incurred), see if you can't break the cycle yourself first. If you didn't have the payday loans to pay back this month, could you make ends meet financially? If so, you can put a stop payment on the payday loan checks you've just written. The cost will vary depending on what your bank charges. Then you can let the payday lender know that you'll be sending them whatever amount you truly can afford each month. Before you take this step, so you're ready to deal with your creditors emotionally, go sit down with a good credit counselor. They can help you set up a budget for free and may also be able to help you deal with the payday lender as a middleman.