Bankruptcy Options

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Bankruptcy Options Often Seem Too Few

Generally, the bankruptcy options for consumers involve 2 kinds of filing choices Section 7 and Chapter Thirteen. Chapter 7 eliminates the particular mitigating debts that have piled-up for both individual consumers and organizations. Chapter 13 restructures financial obligations for individuals to put all of them into more manageable increments of payments. Normally, payments to be able to creditors on a Section 13 filing are usually paid off over the course of 3 in order to 5 years. These sections will effect property such as homes, buyer debts, and credit. These kinds of choices will have an effect on credit for as many since ten years. The sections stay on credit reports for 3 years beyond any time most debts disappear, which is typically seven years. The ability to acquire credit and loans regarding homes and automobiles can be affected for some years beyond the procedure. Consumers should just go for these remedies as a last resort whenever every other possibility may be exhausted.

Statistics reveal that about one in each and every seventy people record on an annual foundation. Bankruptcy options are of the highest urgency to keep more consumers from submitting. Some consumers truly believe they are without the other choice. Many will file proceedings for amounts as minimum as $5,000. The burden of insurmountable debt and relentless lenders calling and delivering venomous letters, causes customers to succumb for this as their sole choice in the matter. Credit counselors may even advise a person that going for broke is the better way to go. This may or even may not be true because the implications of processing can remain as criminal record with the courts up to twenty years. Employers can easily dig and sometimes get the information decades after items have been released from a person’s credit.

We’d like more bankruptcy options for individuals. Lenders need to take some responsibility and have more programs in place to assist debtors that finish up in trouble. Sometimes aggressive lending practices can land a person right into a situation where they seem to have no other choice. Also, credit should simply be extended to people who truly are qualified. More stringent measures need to be applied to help with the situation.

Comments: 50

  1. Tami February 2, 2013 at 4:57 am Reply

    in Texas? I have no money to file, actually on the edge of not even having rent money, so I can’t afford anything. I have 7 late cards in which they are all just adding them to the bill each month except for one that starting calliing me when the card was 2 days late. It has been 3+ months and they are turning my card over to a legal firm. I have tried to contact Houston volunteer lawyers and they no longer handle bankruptcy, and have tried to contact Lone star legal aid. Got a recording on every number I called. They say they only take bankruptcy calls on mondays from 9-11 45 and I just called now. They say press 5 for bankruptcy then give options which don’t include bankruptcy, press 1 , return to main menu press , no option at that point for bankruptcy. Does anyone know of an actual number that I can call to get information? I have called, emailed, etc and got nowhere.

  2. Eugenio February 28, 2013 at 6:20 pm Reply

    I am 25 and was laid off from my job. In result, I wasn’t able to keep up with my credit cards. I now have between 10-15k in debt and 13 negative marks on my credit. I now have a good job that pays well, but cant get credit to save my life. The report said most of them wont be off until 2014 and later. Is bankruptcy the right way for me to go?? Is there other things I should consider?

  3. Felisa March 25, 2013 at 2:53 am Reply

    believe it or not, i just cannot find any job. I have hunted for job a lot but there is no luck. Now i’m being frustrated by creditors who call 40 times a day. So to get rid of such harassment, i decided to file bankruptcy protection.

    What will be the consequence of filing bankruptcy?

  4. Shanna April 5, 2013 at 3:42 am Reply

    7, 11, 13? what are the main differences, and how would someone choose if that is thdeir best option?

  5. King April 17, 2013 at 12:39 am Reply

    My husband and I have decided to file Chapter 7. We have already contacted a bankruptcy attorney, but have not officially filed. We are going to surrender our house. It is worth less than what we owe on it. We are currently less than 1 month behind on our mortgage payment. How long after filing would we need to be out of the house? We don’t want to get notice and have to be out all of a sudden. By the way, we are filing in Illinois. Please…no responses about how bankruptcy is a bad thing. You don’t know our financial situation. Thank you.

  6. Hal May 11, 2013 at 8:44 am Reply

    Our private student loans are KILLING us. We can not make ends meet anymore. There is not a lot of credit card debt, less than 2k, but our car payment is high too because of negative equity from previous vehicles. The government student loans have been consolidated and aren’t too bad. Is bankruptcy the only option?

  7. Kristine May 17, 2013 at 1:40 pm Reply

    I lost a house that has yet to be foreclosed and I want to file bankruptcy on the$115,000 owed along with all the other collection agency debts, medical bills, catalog companies, credit cards, etc. I have no money to pay anyone. Please advise as to what I can do. By the way, I am 56 years of age and these bills are stressing me to the limit.

  8. Valerie May 28, 2013 at 2:02 am Reply

    Help….I am currently entering into a iva but been told bankruptcy may be better for me but I am so worried my name will be published in the local papers :(. What is the difference between he 2?
    I have no assets and a single mum in rented accommodation ? Working 2part time jobs. Will bankruptcy effected my home and jobs?

  9. Virgina June 2, 2013 at 5:08 pm Reply

    A non professional gave me the advice of filing bankruptcy for debt i have totaling $5000. His argument was that with these debts that i have are obliterating my credit score anyway and that bankruptcy wouldnt be any worse. Is this true? What does filing bankruptcy do to your credit report and would it damage it more or less than leaving these debts sit as i do not have the money to pay them off at the moment. Thank you for reading and any help.

  10. Trudi June 25, 2013 at 11:01 pm Reply

    I live in Arizona, currently cut off hours at work and I’m going to school. I owe things that have been affecting my credit for years and even when I have tried to pay them off, the interests keep going up and its making this impossible. I was wondering if bankruptcy is an option for me but I don’t owe more than 10K so I don’t know if this is possible.

  11. Towanda July 6, 2013 at 2:52 pm Reply

    Over and over I heard various of the fear-mongers say “We’ve run out of options, we have to pass the bailout”. What other options were tried or considered? None as far as I can tell.

    This entire process has smelt badly off, not the least reason being that Bush and Paulsen were pushing it so hard.

  12. Tierra July 21, 2013 at 9:26 pm Reply

    I will be done with paying my 4 year chapter 13 bankruptcy in August, and I am worried about my student loans that I will have to start to pay back. I have already been on a tight budget, and the student loans will be like an expensive car payment that i can not afford.

    Is re consolidation the only thing I can do?

  13. Dave July 23, 2013 at 3:39 am Reply

    In April I filed Bankruptcy. I quit my job after having a devastating miscarriage and felt like there was no other way for us to survive financially. My husband’s job with the Army requires him to have a security clearance and with already shaky credit we decided it would be best for me to file alone. Most of the debt was in my name anyway, so I filed a Chapter 7 in April. Due to my lawyer’s incompetence it wasn’t discharged till December. We’ve been told that with my husband’s low score and my recent bankruptcy our only option is to wait 12-24 months to apply for a mortgage. This makes sense to me, but I’m hoping there is another option out there. We were foster parents for a time and hope to continue that next fall when my husband returns, but he’s stationed in central Texas where CPS prefers foster parents who own their home. We had established a small business in training and boarding horses and would like to continue that in our own back yard and grow from there.
    I’ve contacted the three major credit bureaus to clean up any inaccuracy and I’ve been working at my job for almost a year. Our debt to income ratio is great and despite my bankruptcy my credit score is slightly higher than my husband’s, but still low. I’ve done all of our baking with US Bank in hopes of establishing a relationship with them and I have a low-limit credit card I use for gas and pay off monthly and a secured card I use for business expenses and pay off monthly. So, this is probably much more information than you needed, but it will hopefully be enough to help you answer my question. I would hate to spend another 12-24 months paying $600-800 a month in rent and $500 a month boarding our horses when that could be $15-30k we’ve paid toward a mortgage.
    I understand that all actions have their consequences, but we’re a Christian family and hope that through the right network, education and of course prayer there may be some chance of purchasing our first home so my husband comes home from Iraq feeling accomplished and secure.

  14. Robert August 7, 2013 at 2:50 am Reply

    I have been looking at my options, and Bankruptcy is the most logical. What are my alternatives and why?

  15. Raymond August 8, 2013 at 4:59 pm Reply

    I am way over my head in credit card debt due to job loss a year ago. I can’t find a job in my field right now due to the economy so I have no way to pay off my debt. Is bankruptcy an option?

  16. Leonel August 25, 2013 at 7:50 pm Reply

    I am thinking of filing for bankruptcy. Can creditors touch the equity I have in my home? What assets can they cease?

  17. Johnnie October 12, 2013 at 8:44 am Reply

    In bankruptcy, Segregated Funds are safe from creditors. How about for someone who is NOT filing bankruptcy?
    I live in Michigan (if consumer’s state exemption laws apply). Thanks for any help.

  18. Lance October 24, 2013 at 5:33 am Reply

    I want to declare bankruptcy but I dont have the money to pay for it. Im getting tired of all the credit people begging me for money and such. I dont have the money to give to anyone especially my family and such. I need help.

  19. Noble November 25, 2013 at 5:41 am Reply

    I had a very bad injury and now no income, I can not afford to pay for car or any other bills, bankruptcy is only option. How hard is it to rebuild your credit?

  20. Basil January 9, 2014 at 9:55 am Reply

    General Motors , very old company, is reported to be weighing bankruptcy option. Can somebody comment on how earnings of so many years is on the verge of being wiped out in one go and the company is weighing bankruptcy option.

  21. Dong January 15, 2014 at 4:47 am Reply

    I really need help with this business question: What consumer credit options are would be available to a senior high school student with a part-time job who wishes to attend college/university after graduation in a time of rising interest rates and high inflation? The student knows that his/her parents cannot afford to pay for all of his/her education. I’ve already thought of some credit options – grants and loans. Any more?

  22. Bennie February 2, 2014 at 3:00 am Reply

    I have a home that may go into foreclosure soon, should i file for bankruptcy-do i have any other options, and what happens to you financially & will you ever be able to restablish your credit?

  23. Rod February 4, 2014 at 7:09 pm Reply

    We didn’t have the insurance coverage to handle the weather storms and floods that hit us during Storm Sandy. We thought we did but so many games were being played that we lost out like many others. Now it’s time to contemplate bankruptcy. Where do we go?

  24. Nancee February 14, 2014 at 7:57 am Reply

    I am 27 years old, pregnant and unemployed. I want to start fresh and have a great life with my family. Could someone please give me some advice on filing bankruptcy in Ohio? I have close to $10,000 in credit card debt and $2500 in other debt. I really don’t know what my other options would be at this point. I have tried working out payment agreements with the creditors but they are being unreasonable and not following through with their promises. Any advice would be greatly appreciated. Thanks!

  25. Belle February 20, 2014 at 7:33 pm Reply

    If you had loans both secured and unsecured, would you get an attorney for bankruptcy or what would you do in this case:

    Liabilities and expenses exceed your net income
    constantly refinancing to stay above water

  26. Tai February 20, 2014 at 10:48 pm Reply

    I recently heard about this company which offers debt reduction, around 50 percent, and you pay a monthly balance until your debt is gone. You can choose a one year payment plan, 2 or 3. I’m curious to know if this effects your credit as much as bankruptcy than why not just apply for bankruptcy? Please provide me with your opinions, experience, knowledge.

    Thank You

  27. Brenton February 20, 2014 at 10:48 pm Reply

    Can anyone tell me the ramifications of filing for bankrupcy? What effect would it have on day to day life if you were forced to the wall and took bankruptcy as an option?

  28. Pricilla February 21, 2014 at 11:30 am Reply

    I just finished a divorce that took over a year and half to complete. Now Im faced with child support and alimony, in addition to whatever equitable distribution I have to pay. This year and a half led to me using up my credit cards and borrowing money. I’ve reached a point that I will not have any credit cards or enough cash to pay for my own living expenses, car, food, etc, plus child support and alimony.

    Can I file for bankruptcy? What option do I have? My credit is over 700, but I really cannot afford to pay for everything anymore. I dont know what to do.

    I would appreciate any help I can get. Thanks.
    Im fully aware that I need to pay child support, which I have no problem with, since it’s for my child who I love.

  29. Danna February 21, 2014 at 11:30 am Reply

    i am looking to file bankruptcy not sure which kind 13,7 or the others but i was wondering if anyone knows if i have to include my husband?? None of the debt i have has his name on anything and he doesnt know about alot of my debt due to me having it before we met and it is embarrasing but if i have to affect him with it i need opinions on other options

  30. Vernita February 21, 2014 at 4:14 pm Reply

    Im on the fence and i need some insight. Im 27 currently having about 18k total debt from about 4 credit cards. Around 2007 every thing was fine i made about 440 a week with less than 40 hours of work. My main Credit card was 17k limit and credit score was 779. Bought a car on the card for 14k like an idiot because at the time it was worth 24k. tried to make a resell profit for school money, big backfire end of story. went through a period when the recession hit to making only about 750 a month. Spoke with a BankRupt lawyer for that option about 5 months ago, its even taking this long to save 1500 + 150 to protect the car wich i now need for transpo. While im saving is there any advice on options like all these debt relief commercials on tv, is that a better option or has someone tried that route? Also im now kinda making the amount of money i was before the hard times. about 1400 a month again. So would i even be eligible now? if i tired bankruptcy would they say u make enough now to pay this money back, when honestly i cant, cost of living for everything has changed since 07, pretty much paycheck to paycheck with an additional 1200 debt from medical bills thats not included im my total debt. Plz help

  31. Tawanda February 21, 2014 at 4:14 pm Reply

    So I owe money on a car that my mom and I co signed on…..She wants me to file bankruptcy in which she wouldn’t have to file but isn’t sure the specfics such as if the bankruptcy would effect her credit, how long, what would happen on either Chapter. Thanks any help is appreciated!

  32. Becki February 21, 2014 at 7:03 pm Reply

    I lost my job because a car accident (not my fault) and I’m about to loose my house and I don’t know what to do , I’m wandering if I fallow for bankruptcy will help me to keep m house ?,I don’t really know how its works,and how will affect me in general for good and bad ,I asked the bank to give some time to find job but one of the agents said no, and I need some advice please.

  33. Valentin February 21, 2014 at 9:04 pm Reply

    If you own your home, making mortgage payments and file for bankruptcy, are you able to keep it?

  34. Signe February 21, 2014 at 10:40 pm Reply

    Hi !! I would like to know or rather gain knowledge on bankruptcy. if anyone can provide information on like how to file a bankruptcy or other options.

  35. Darwin February 21, 2014 at 11:03 pm Reply

    I just need some information on this…I’m in bills over my head…Paying them is not an option..I hit a rough point in my life and went in to dept very quickly…Not pround of it and very depressed from it….What should I do…If i choose to pay it out of my own pocket it will take well over the 7 years it takes to clear anyways…What is going long will it take to get my credit back?and how will this affect me??
    PLEASE HELP….. i will be choosing best answer….THANK YOU SO MUCH!

  36. Normand February 21, 2014 at 11:03 pm Reply

    I went to a very expensive private University and although I had about an 80% scholarship I’m up to my neck in student loans! I’m trying my best to pay them, but it’s been 3 years since i graduated college and I’m not making close to what I thought I would be making by now. So, now I have all these other payments to deal with which I need to make in order to survive (i.e. rent, car payment, insurance, utilities, GAS etc.) I have GREAT credit and I don’t want to kill it with a bankruptcy, but I don’t know what other options I have. Can anyone help???

  37. Cortney February 21, 2014 at 11:34 pm Reply

    Iam 24 yrs old with financial difficulties….as everyone else in the world. I Currently have 6 school loans that are currently in default and the monthly payments are being garnished out of my wages. I have an outstanding car loan that is not in good standing. I have a personal loan that is in excellent standing through citifinancial. I have old outstanding medical bills, cell phone bill and a small amount of credit card debt on my credit. When I wanted to lower my interest rate on my personal loan that is actually in good standing I wasnt able to because the loan officer said Iam one step away from banruptcy with how my school loans stand. Iam wondering if I should claim bankruptcy at age 24 and start with a clean slate. I know i hurts my credit doing that….but If iam one step away from it then how much can it really hurt to have a fresh start? Do you have to be approved to file Chapter 13 bankruptcy?

  38. Roger February 22, 2014 at 8:41 am Reply

    Have had 2 mortgages for a yr and 1/2, can’t sell house. Still have good credit, have been paying all bills. Just need to get rid of one house payment, can afford all other bills. Is foreclosure our best option?

  39. Edna February 25, 2014 at 1:46 pm Reply

    So money is tight for everyone, and I’m trying to see if I can refinance some big ticket bills to have money to pay off high interest rate credit cards. Nobody will refi because my credit isn’t good enough.

    Endless cycle in progress.

    So I’m searching for ways to fix the situation and the two options of credit counseling and debt settlement come up. We’ve done counseling – even finished it. Got three credit cards done. In the process of being strapped for cash paying them off we wound up racking up more debt. And the real kicker? It hurt our credit anyway (hence no refinancing for our high interest rate car loan).

    Debt settlement? Sounds great, right? 50% of the debt disappears. BUT – you have to be delinquent to the point of getting sued AND you have to pay taxes on that 50% (as if it were income). Then you have to pay to have someone do this for you (as most credit places will laugh at you as an individual). Then there’s the fact that it stays on your credit.

    Counseling and reduction only stay on your credit report for 5-8 years as opposed to bankruptcy which stays for 10, but it takes 2-5 years just to FINISH counseling or reduction! Where’s the benefit again? Most sites that promote it are either in with the credit card companies or are going to charge you for their service.

    I’m starting to think that bankruptcy looks like a more honest option. Anyone have any experience to share?
    Yes, I contacted a counseling service, a debt settlement firm and a bankruptcy lawyer. I really feel that out of the three choices – bankruptcy is the best. I think it only gets a bad rep out of the three evils because nobody is making money out of it.

    I think all three choices hurt your credit equally, but there are more options to quickly restore credit with bankruptcy and more free personal capital to do it once the unsecured debt is eliminated.

    Anyone go through more than one of these and want to share their experience?

  40. Normand February 25, 2014 at 1:46 pm Reply

    Can you file bankruptcy just on credit cards and not have to lose your house or car. I’m never late on any payment but after my husband an I married, our debt is crazy. We have stopped using the credit cards but his ex wife keeps coming after for more and more money for his daughter. So we’re just drowning it seems like. What what is my best option? I tried getting a second mortgage to combine everything together but I was declined since I just bought our house and car.
    We’ve never been late on any bill. We’re always on time. We live paycheck to paycheck but with his ex wife she keeps asking for more and since she has connections with the judge, it seems like he grants it ALL THE TIME. then we can’t afford an attorney to fight. So if we could save on our other debts.. then we could spend the money for an attorney. How and What debt consolador do you trust? I’ve heard it hurts you in the long run by paying more.

  41. Tracey March 9, 2014 at 8:36 pm Reply

    What do i need to do to get the ball rolling on filing bankruptcy? how long will this whole process take? I live in Pennsylvania.

  42. Penelope March 16, 2014 at 1:50 am Reply

    Long story short, we have a LOT of old debts, and a lot of missed work being unable to pay them, etc.

    Most are quite old, reaching 5+ years. If I were to make payment arrangements with them, I would not be able to pay my current bills, which are just utilities and car loans.

    Just got a notice of being sued from a bill I didn’t know I had (medical, supposed to be paid 100% by insurance, guess it didn’t happen) from 2 years ago…can’t afford a garnishment.

    Would bankruptcy be an option at this time? I would hate to do it, but my gosh, our credit is already havoc (please don’t judge, military deployments delaying money coming in was the most of it), but I don’t want to lose my cars I’m paying for, etc.

    Cat dad, it was served to us last night, with 20 days to send a letter to the attorney representing the company, or they will give judgement of $2000 to the plaintiff.

    I’ve had a car repoed over 5 years ago, but that is $10k in itself, so if I added up the sum of everything owed, it probably WOULD be over a year’s salary.
    Cat dad, Oklahoma, and thank you everyone for your insight.

  43. Raven March 28, 2014 at 3:57 am Reply

    Is bankruptcy a good idea if you have bad credit and trying to straighten out you credit.

  44. Charles March 28, 2014 at 8:19 am Reply

    I’m 34, single, childless, barely surviving and can’t even afford to rent a one bedroom apartment (I’m renting a room for 400/month.) I have ridiculous student loans, medical debt and some credit cards. I work three jobs and am freaking out because of a student loan garnishment and now new papers I was served for a medical bill. I don’t own anything. Is bankruptcy right for me?

  45. Kurt April 20, 2014 at 3:46 pm Reply

    My divorce is final in Aug. in the separation we had verbally agreed she’d pay the first mortgage on the house and I’d pay the second. The first is in my name alone, the second is in ours jointly. She still stays there, but informed me she intends to make no more payments. Partly because she cannot afford them, partly because she’s out to ruin my credit. Right now, she’s missed the last 2 payments, I’ve spoke with the bank who holds the mortgage, they said I would not be able to “take back the house” once it falls to foreclosure. Would it be wise for me to try and put the house into bankruptcy. I’m not sure what options I have at this point, so feel free to suggest anything.


  46. Elfrieda April 27, 2014 at 12:58 pm Reply

    My wife owns a business that is going under. It is looking like she may have to file for bankruptcy. I don’t want her to do this because my job requires security clearness and if she does do so they may put a lean on my house. I have great credit and I am financially stable. I was wondering if there is any way around filing for bankruptcy? And if she does file how can I avoid it hurting my credit or endangering my job since it is her business.

  47. Damion May 6, 2014 at 2:09 pm Reply

    I have gone through a divorce and acquired bad debt (foreclosure, repo, etc…) while ridding myself of a spouse. I feel there is no other way to start clean than by filing bankruptcy. Is this the right decision? Any bankruptcy success/ failure stories?

  48. Rusty May 22, 2014 at 6:44 pm Reply

    I am a mid aged parent who now found myself over my head in debt due to the events of the economy.
    I been fighting foreclosure of our home and bank taking our truck.
    1st priority is our home. What bankruptcy options do I have where I may stay in our home?

  49. Fidel May 25, 2014 at 3:37 pm Reply

    If I couldn’t afford to pay of my debt would bankruptcy be my only option? Help!

  50. Annice June 13, 2014 at 12:00 pm Reply

    Long story short, I’ve been laid off twice within the past 2 1/2 years and have been completely unemployed for the past year. I even lost out on $4K because the last company who laid me off decided to file for bankruptcy instead of paying its employees their 2 months worth of severance pay.

    I’ve had about $4K in medical bills build up since then, my car was repossessed and I still owe the remaining $3K balance plus whatever fees they’ve tacked on, plus two $300 balance credit cards I could no longer pay in which the amounts I owe have quadrupled due to non-payment.

    Since I’ve been unemployed, I’ve moved to another city with cheaper rent and got a roommate, so I can’t really see how much more I can reduce my cost of living. Fortunately my cable and internet are free, but sometimes I still find myself having to go a day or two without something to eat. I guess that’s not too big a deal as I’m not starving to death, but it’s scaring me because it’s an indication that I’m not doing very well financially.

    My debtors REFUSE to work with me because I’m unemployed. Every single credit counseling service I’ve called told me that I had to pay at least $450 a month to repay these debts which is something I can’t do with my unemployment checks right now. And who knows if I’ll be able to pay that when I get a job?

    I know that my debtors will be lining up to garnish my wages AS SOON AS I start working, and if that happens then I’m pretty sure that I won’t even have enough money left over to cover my half of the rent.

    I’m really scared about my future and I think that the best thing for me to do is throw my hands in the air and file for bankruptcy.

    Any help or suggestions?

    I just don’t know what to do!
    Thanks Wonkette, but as I mentioned before I already tried consumer credit services.

    It’s OK. I didn’t really expect anyone to read my whole explanation because I admit it’s kinda long and boring!!!

    But that’s the best way I could condense the story . . .

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