PLEASE HELP ME, SHOULD I FILE FOR CHAPTER 7 OR SETTLE MY CREDIT CARD DEBT?
PHILLY asked:
i have $60,000.00 in credit card debt. i am unemployed. i live in an apartment by myself. i haven’t been paying on my credit cards (except one so i can use it for gas) for the past few months or so. i haven’t been paying on them because i can’t afford the minimums. should i settle the debt, or should i file for chapter 7? even if i settle it will still take me forever to pay the portion required back, plus, from what i’ve been reading, my credit will still be equally screwed if i were to file bankruptcy. no matter what i choose, i am moving back in with my parents, so that will free up around $1,000/month, either to pay back the amount i settle or to start saving up if i file for bko. can someone please tell me what is my best option? i’m leaning towards chapter 7 so i can just get a new start. and if i do file for bankruptcy, (i live in PA), can i keep my car, which i am the primary owner for the title, however my dad is the primary signer for the bank loan, because if he wasn’t it would of never been approved because of my credit, i am the cosigner, and if i do file for bko would my father be affected by that since he is the primary holder for my car. also, would i be able to keep my laptop and tv (the only 2 things i have besides my car, which i recently purchased for $5,900, that have some type of value). i leased the car 3 years ago and last month the lease ran out, so i purchased the car because it was the cheapest option for me at this point in time of my life, $160/month. but i couldn’t purchase the car by myself, again, because of my credit, so i had to get my dad to be the primary signer, again, if i file for bko, is that going to ***** over my dad? please help me out with your advice, websites i can explore, other options, etc. thank you very much for your time and help, it’s greatly appreciated. i know i’m screwed credit wise, i just don’t want to put my father in a tough situation. i can’t sleep at night because this whole situation with my credit is all i can think of. i messed up, and now i just want to do the right thing, the best thing, that will be able to get me out of this fiasco as quick as possible. thanks again, you don’t know how much your advice means to me. thank you.
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i have $60,000.00 in credit card debt. i am unemployed. i live in an apartment by myself. i haven’t been paying on my credit cards (except one so i can use it for gas) for the past few months or so. i haven’t been paying on them because i can’t afford the minimums. should i settle the debt, or should i file for chapter 7? even if i settle it will still take me forever to pay the portion required back, plus, from what i’ve been reading, my credit will still be equally screwed if i were to file bankruptcy. no matter what i choose, i am moving back in with my parents, so that will free up around $1,000/month, either to pay back the amount i settle or to start saving up if i file for bko. can someone please tell me what is my best option? i’m leaning towards chapter 7 so i can just get a new start. and if i do file for bankruptcy, (i live in PA), can i keep my car, which i am the primary owner for the title, however my dad is the primary signer for the bank loan, because if he wasn’t it would of never been approved because of my credit, i am the cosigner, and if i do file for bko would my father be affected by that since he is the primary holder for my car. also, would i be able to keep my laptop and tv (the only 2 things i have besides my car, which i recently purchased for $5,900, that have some type of value). i leased the car 3 years ago and last month the lease ran out, so i purchased the car because it was the cheapest option for me at this point in time of my life, $160/month. but i couldn’t purchase the car by myself, again, because of my credit, so i had to get my dad to be the primary signer, again, if i file for bko, is that going to ***** over my dad? please help me out with your advice, websites i can explore, other options, etc. thank you very much for your time and help, it’s greatly appreciated. i know i’m screwed credit wise, i just don’t want to put my father in a tough situation. i can’t sleep at night because this whole situation with my credit is all i can think of. i messed up, and now i just want to do the right thing, the best thing, that will be able to get me out of this fiasco as quick as possible. thanks again, you don’t know how much your advice means to me. thank you.
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November 21st, 2009 at 6:10 am
I personally, would call the credit card companies and work out a payment plan under the circumstances of economic hardship. Whether it be 50$/ month. Most companies will accept this. If you’re wondering how you are going to pay this 50$/month…put your pride to the side. Do odd jobs, sell some of your valuables and save,save,save. Just keep paying. That’s the best thing that you can do. See if you can also find some supplemental income somewhere. 60,000 is alot of debt to chisel through but sometimes you can negotiate a payment plan with them that will allow you to settle a portion of the debt. Usually under the agreement that you make timely payments within a certain amount of time, for a certain amount. When you talk to the credit companies, get everything in writing and make sure that once the debt is settled that they promise to report the debt PAID IN FULL.
As far as your dad..I would schedule a consultation with a bankruptcy attorney. In most cases, Chapter 13 would not hurt your cosigner as much as Chapter 7, because the co-signer agreed to pay in the event that you were unable to. Chapter 13, is a court- ordered repayment plan and your co-signer would be safe, because you(the borrower) still have an agreement to pay.
But… like I said just keep paying on the cards for now. It is possible to get through the debt. Just live within your means, make timely payments, take your credit serious and DO NOT take on any NEW debt.
I have some homework for you:
Take out a piece of paper.
Write out your income (including assets) Like your laptop and t.v.
Write out how much money you can afford to pay a month to the credit companies.
Write out how long it would take to pay each one. (i.e. 5 years)
And how much income you would need to pay it off within a certain time frame( i.e.$21,000 a year to pay off in 5 years or so.)
Start looking for 2 new jobs. You’re going to need the money.
Be patient, it will take some time. Big messes take a lot to clean up.
And if you decide to just pay the debt off on your own, your credit will thank you. All your accounts will be closed and your credit score should start looking better.
November 24th, 2009 at 12:40 am
Usually if you don’t include a car in bankruptcy, it won’t be seized but you must continue paying for it. Usually it does not have to be included in the bankruptcy since the value of the car is less the amount owed on the loan. If you make late payments, that will affect your fathers credit.
The is a remote chance that personal property (tv, laptop, etc.) will be seized.
November 26th, 2009 at 5:48 am
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November 26th, 2009 at 6:25 am
Hi,
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