Filing for bankruptcy

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First off. You are CONSIDERING filing for bankruptcy. So, legally you have not decided this yet. If you were to take out more unsecured loans and then go bankrupt later it would not be illegal. 20K is usually not enough to consider bankruptcy. I would try to pay some of it off and get some loans that will cover you at a 2% introductory rate or something. Even if you bang it up to 40K the option to go bankrupt is still there. Read between the lines.

It’s not true that you cannot go bankrupt again for 7 years. It’s actually every 6 months, but there is a little trick to doing this. Lenders may contest if you keep slamming them every 6 months.

It will stay on your credit report for 10 years. You can get a mortgage with a normal rate after 3 years. You can get credit cards the day after your bankruptcy is discharged if you know how. Not some BS card, I mean a normal card with a 5K+ limit.

Don’t say NO people. I’ve done it already.

Do not pay any collections accounts. Even if you pay them the collections statement will still be on your credit report. May as well be an R9 charge off because you will be screwed just the same. Let them charge it off and pay them nothing. You will get a 1099 statement at the end of the year if your interest and principal did not equal the amount of the original loan.

If they are breaking your balls, send them a cease and desist letter. This only works with collection agencies. Not the original lender.

Corporations do this kind of crap all the time. People don’t usually do it because they get scared when a collections agent calls them or they get nasty mail.

 

[KAYNE]

20k?

that's like buying a 25k car and making monthly payments on it. What difference does it make? Just keep making payments.

unless u already got a car payment.

-= nav =-

NOT EXACTLY ACCURATE SUPERNAV.......CAR LOANS ARE USUALLY SIMPLE INTEREST LOANS WHICH MEANS YOU HAVE TO PAY BACK A SET AMOUNT WHETHER YOU PAY IT OFF IN 2 MONTHS OR 5 YEARS.

HIS DEBT IS PROBABLY CREDIT CARD PURCHASES AND SHIT LIKE THAT. IN WHICH CASE ALL THESE LOANS ARE COMPOUNDED (PROBABLY CONTINIOUSLY). INTEREST IS ADDED TO THE PRINCIPAL AFTER EACH COMPOUNDING PERIOD. $20K ON A CONTIOUSLY COMPOUNDED CARD AT A HIGH RATE WILL TAKE YOU YOUR LIFE TO PAY BACK IF YOU ARE MAKING MINIMUM, OR NEAR MINIMUM PAYMENTS.





KAYNE

 

[Imnotdutch]

I agree with 2Thick. 20K is not that much........you can definitely work your way out of this. You just need to cut your living costs to a minimum for a couple of years.

You should take out a 2nd mortgage on your house.

If you do not own a house, then find a studio apartment where you pay next to nothing in rent, then only buy food in bulk and eat lots of cheap food. Cut everything you do not need in your life. After a year or two, you should be out of debt.

 

[Stangfriik]

Thanks for all the advise. I'm just weighing my options right. The 20k didn't include my car. That would probably be another 8k plus the house if you count that. Unfortunately at the time we tried to get a home equity loan, we had only been living in our house for 4 or 5 months. They told us we didn't have enough equity yet. Is a 2nd mortgage different? We have now lived here for 7 months which I don't think is long enough. I'm so clueless on this stuff which is why I'm trying to find every option available. We are making the payments but we have to pay the minimum amount on each of them. Mortgage doesn't get paid until the 14th of every month b/c we never have enough money left over at the beginning of the month. All cards are maxed right now b/c when we really didn't have any money at one point forced us to use the cards for necessities. I've tried applying for other credit cards with lower interest rates so I can transfer the balances but we both keep being denied. I just don't know what to do. Luckily we have a home warranty so if anything major breaks, we won't have to pay that much. But it expires in August and we don't have the $360 to renew. We haven't even been able to pay the Home Hwners Association fee for this year b/c we never have that kind of money left over. Unfortunately we're not prepared to deal with a major hit like a broken down car, house probs, etc.

 

[TroyRoccoco]

Stangfriik - my advise is that you put away a little one everymonth. E.g. $20 or $30 in an intrest savings acount e.g. straight from your pay-check into a credit-union or something. That way you never see the mony so you dont miss it. Every month just throw away your bank statment withough looking at it and you never now you got that cash to spend.

Then one day youll will look at your bank-statement and will see that your reglar savins have built into a nice little nest egg which youse can use to pay off your debts.

If you do considr bankruptcy my advice is that you contact a financial adviser first.

 

[fogg88]

It’s not true that you cannot go bankrupt again for 7 years. It’s actually every 6 months, but there is a little trick to doing this. Lenders may contest if you keep slamming them every 6 months.

please elaborate on this...

 

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CAR LOANS ARE USUALLY SIMPLE INTEREST LOANS WHICH MEANS YOU HAVE TO PAY BACK A SET AMOUNT WHETHER YOU PAY IT OFF IN 2 MONTHS OR 5 YEARS

Absolutely not. There was a lawsuit against GM over 10 years ago for that exact thing. They can only charge you interest for the time you actually owe them money.

Also, in the loan agreement you usually use the car title as collateral. Unless it was an explicit personal loan. Then the car can be considered an asset when you file for bankruptcy.

 

[[email protected]]

Every time you apply for credit your FICO score takes a hit. In my opinion on credit cards, since you have already been denied, you will not get one with any significant limits.

You can get a 125% equity loan. If you have NO equity you can still get one. But your FICO needs to be over 720 in most cases.

You can keep your house if you file for bankruptcy as long as you don’t list the loan. The same with the car as long as you owe a good amount on it. Besides, you don’t actually own the car because you prob don’t have the title.

 

[[email protected]]

please elaborate on this...

Spoke to a lawyer about this a while back. He said it could be done. It’s within the law. But when lenders see you milking the system they usually start contesting the claim of bankruptcy and try to get the judge to deny the discharge.

It can be done. But the amount of credit that someone with a recent discharge is usually not that much because of the impact to credit the bankruptcy has.

YOU CAN actually purchase your loans that are defaulted from creditors. Example:

You owe “Crappy Credit” $5,000 and you defaulted on the loan. Collections could not get money out of you. So, you make an offer to the creditor for 50c cents on the dollar for the loan through an attorney. They sell you the loan and all the reporting rights. You then update your own credit reports because the loan is legally yours. PAID AS AGREED!

 

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Am I killing you guys yet with this info