I have credit card debt to 4 different banks. I can not afford any payment. Do you know how can do bankruptcy?
Answer:
Bankruptcy for a small amount will cost you much more than it is worth in the long run because 1st you won't get any type of credit or any credit at a decent rate for a very long time and you need credit for things like a car or new computer, etc.
So, if you cannot make a payment at all this month then call the banks and tell them that you can't do it this month but that you will next month. If next month you cannot pay them all then choose atleast two and keep them in good standing.
There is a trick to this. Don't just throw up your hands and quit. Bad credit drops off your credit report in 7 years but a BK stays for 10. If you keep atleast two cards in good standing, choose the two that you have had the longest because you want to keep the history then you still have some good credit and when the negative things drop off you'll still have a good long history.
You never know what might happen over the next few months. You might get a great job and be able to catch things up and then you've only got a few over 30 or over 90 marks on your accounts. If not then it might happen in a year and you might call the collections companies and settle for 1/3 of the debt. Again this will be negative but not like a BK.
You have to see a bankruptcy attorney.
How much total debt? You may be able to avoid bankruptcy if it is not a very large amount. Try consolidation first. Bankruptcy will kill your credit for at least 10 years.
go get a 2nd job if you already have 1 and cant afford your debt who do you think is supposed to pay your debt? bankruptcy is the cheaters way out
Go to the citizens advice bureau - they should be able to help you, bear in mind though that this is a very big step. You could stand to lose your house, car, any expensive goods, computer, TVs and such - as creditors will want a chance of some of their money back. You will also be black listed and not allowed a mortgage for a long time. Think before you act, this is no easy way out.
Best of luck matey
Talk to all your banks, and come clean. They may be able to put together a plan for you to pay off your debt over a longer period, or wait until you get a job. In any case, they can also advise you about bankruptcy.
Before you think about bankruptcy, look in to debt counseling, debt settlement programs. Sometimes you can actually work with the creditors to lower your payments, if you tell them you can't afford to pay it. Say there is no way you can pay what they want right now. But if all else fails, they can threaten to sue you and take you to court, which depending on your state, could lead to a judgement where they garnish your wages and freeze your bank account. So talk to a lawyer before it gets to that stage and if they call harassing you, tell them you are in the process of declaring bankruptcy. They are supposed to then stop contacting you at all and only deal with your lawyer.
http://www.insolvencyhelpline.co.uk/.
go here you'll find loads of helpful advice including bankruptcy if thats the way you want to go
You want to try and avoid bankruptcy if at all possible. Try writing to all your creditors and seeing if they will accept a smaller amount per month; or a larger, one off payment to settle the debt. Many companies will be prepared to accept something, even if it is not everything you owe. You want to avoid consolidation loans, often they will be secured against your property.
Best thing would be to go to the citizen's advice bureau first, and see what they say. http://www.citizensadvice.org.uk/.
you have taken the first step by admitting you have a problem, the worst thing you can do is ignore debt . it does not go away. if your in the uk contact consumer credit counselling service free on 08001381111 or national debtline 08088084000 for free confidential advice, they will guide you through your options (you do have some) and support you through the process. if your outside the uk look in local telephone directories for free helplines. THEIR IS LIFE AFTER DEBT. GOOD LUCK.
Your first step ought to be to talk to the Citizens Advice Beareau [CAB] as they will be able to give you the best possible advice and they are FREE..
Also try looking on the money saving expert website [www.moneysavingexpert.com] to see what steps other people have taken.
From what i understand Bankruptcy will really screw your life up.The CAB must be your first step.
There are alternatives to Bankruptcy. Depending on where you live (england/Scotland) an IVA may be more appropriate. This is where you pay off what you can over 5 years and then the rest is wrirren off. It is less severe on your credit file. Call CCCS they are a charity and will go through everything with you they are great.
I am assuming that you have late payments and have been charged. You can claim these back off the companies and use them to help pay off the debt.
a great website is www.consumeractiongroup.co.uk & www.moneysavingexpert.com & www.cccs.co.uk
Good luck
Well, people in debt often seem to find some help here :
http://credit-cards.ebookorama.com.
and here http://finance.ebookorama.com
also plenty more to read here
http://credit.ebookorama.com
http://credit-repair.ebookorama.com.
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