Bankruptcy

Hey everybody I am in need of some info. If any of you have ever filed bankruptcy please chime in here.
I am not doing so well financially. I know I can't catch up so I am thinking of filing bankruptcy.

I don't owe alot of money. Around $5000 but I don't make enough to pay it back with child support coming outmof my check. I am caught up on child support but I have medical bills, credit card bills and a sprint bill that I cannot afford to pay.

I am getting hassled non stop and it sucks, I feel bad that I cannot pay and I never planned on this happening. Me and the girlfriend split so it's only my income paying for everything plus I pay $300 a month in child support.

I don't know what it costs to file and i'm a little embarassed about it but I need some help. So if any of you have filed and you have some advice and or questions for me please chime in. Send me a pm or post here thanks

I have never filed for bankruptcy but Attorney's that specialize in it will give you a free initial consultation. However I would not even consider filing for the small amount that you owe. While the creditors calling may seem annoying to you, your debt is very small. Consider getting a new phone number.

Bankruptcy is never a quick solution. Depending on where you live a filing fee may be as low as $500 or well over $1,000.00. Sometimes a credit counselor can help, maybe better budget yourself. It may seem that the money you owe is overwhelming but talk to a lawyer (never pay for a fact finding meeting thou) and explore your options. Make sure your kids and yourself and your animals are taken care of, get priorities, then move ahead. It will all work out, I promise.:colbert2:

Here is the thing Bankruptcy for 5K in debt is not an option..here's what you do..Contact your creditors..Explain the issues and that you have every intent to pay them. Then figure out what you can pay them a month. Explaine to them that you do owe them the money and your going to pay them off but all you can afford right now is $X.XX a month they take that and get their money or you can file Bankruptcy and they wont get a dime.

Creditors want their money back most will work with you..Bankruptcy is a last "I'm trying to keep from being sued" option..work with your creditors you may have to pay 50.00 a month for the next 5 years..but I promise it's far better than trashing your credit with bankruptcy..

contact a credit counseling service. We have them in Canada, not sure about the US. You can file a consumer proposal although for 5K they probably wont. There may be a way of consolidating all your debt into only one low payment though

AS the froggie said...:gj::salute: and add do it on your own with out councilers..

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Originally Posted by proballo

contact a credit counseling service. We have them in Canada, not sure about the US. You can file a consumer proposal although for 5K they probably wont. There may be a way of consolidating all your debt into only one low payment though

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Most of those places here simply buy your debt off your creditor and while the monthly payment is less the interest is far greater.. for 5K most creditors will work with you to get their money back..

I would not recommend filing bankruptcy for such a small amount. As Freakie said, it may not even be enough to qualify for bankruptcy. You do have other options.

Sometimes the credit cards or other bill collectors will be willing to negotiate with you. Make sure you are negotiating for lower interest, or even an overall reduction of debt. If they just reduce the monthly payment, it might help you breath in the short run, but it won't help you get out of debt.

There are free credit counseling agencies that can help you negotiate with the credit card companies, and may have other suggestions as well. Just be sure you are working with one of the good ones. There are plenty out there that are just scams.

You may have family members who can help out. Some families work this way and some don't, and some might like to but just don't have the means, but if for example you are able to borrow the money from Aunt Susie to pay off the credit cards, then you can pay her back at 10% interest, which is more than she's likely to earn anywhere else, but less than you were paying to the credit card company, so everybody wins.

Even if no family members can/will loan you the cash, perhaps they'd exchange things like mowing their lawn for a free meal. At least that is one less meal that needs to come out of your budget, and a few more dollars you can use to pay down the debt.

If you have had a change in situation, like being out of work or earning less than you used to, you may be able to get the child support reduced. If not, perhaps the mother would be willing for you to skip a payment, or make reduced payments, which you would then make larger payments to catch up on the arrears. Send the money to the credit cards instead, to reduce your debt and most importantly reduce the interest you are paying. If she agrees to this, make sure you get it in writing and it is filed with the appropriate authorities, so you are not in danger of being found in contempt.

I would only recommend any sort of reduction or delayed payment on the child support if the child will still have all his/her needs met. But if it is a choice between and extra outfit or toys, or you getting your debt to a more manageable level, then the child will benefit in the long run if you are more financially secure.

Also, be honest with yourself about ways you can cut back on your spending. Very few people truly have their costs as low as possible. Find places where you can cut back, and do it.

The most important thing is to reduce how much interest you are paying, because that is what really hurts you the most. Every time you have even a few extra dollars, sent it off to which ever bill is charging the highest interest.

Get a second JOB. Part time. You can deliver pizza for as much as 10.00 per hour. Take all the money you make from the second job and get rid of the debt.
But get intense about it. As Dave Ramsey says you have to be intentional about getting rid of it.

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Originally Posted by bman123

Hey everybody I am in need of some info. If any of you have ever filed bankruptcy please chime in here.
I am not doing so well financially. I know I can't catch up so I am thinking of filing bankruptcy.

I don't owe alot of money. Around $5000 but I don't make enough to pay it back with child support coming outmof my check. I am caught up on child support but I have medical bills, credit card bills and a sprint bill that I cannot afford to pay.

I am getting hassled non stop and it sucks, I feel bad that I cannot pay and I never planned on this happening. Me and the girlfriend split so it's only my income paying for everything plus I pay $300 a month in child support.

I don't know what it costs to file and i'm a little embarassed about it but I need some help. So if any of you have filed and you have some advice and or questions for me please chime in. Send me a pm or post here thanks

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You'll never get a judge to grant you a brankruptcy for that amount. Get a better paying job, or get a second job. Turn off the cell phone and cancel the service. Medical bills shouldn't be a problem. Pay them what you can. $10-$20 a month. They have to allow you time to pay off the bill. See if you can work out a repayment plan with the credit card company.

You've got to work this out on your own. You'll be better off in the long run.

Good Luck!
Jim Smith

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Originally Posted by Freakie_frog

Most of those places here simply buy your debt off your creditor and while the monthly payment is less the interest is far greater.. for 5K most creditors will work with you to get their money back..

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ahhh... see here in Canada they will advocate on your behalf and deal with the creditors, then consolidate everything for you and settle with the creditors for a percentage of the amount you owe to be paid back. They also go through and teach you budgeting skills, help you set up a family budget so you can live within your means and help you establish a savings plan. They do charge a fee for the service but it ends up being way less than the debt amount, most of these places are not-for -profit organizations. I have sent many people to them over the years and they have always benefited and ended up on their feet quicker than people who try to do it on their own.

I guess things are very different down there.

Dont file....a close friend of mine had credit card debt..he was without employment for awhile..if it goes to a collection agency and gets passed around...sometimes they will cut the original debt...sometimes by as much as half...they are just trying to make some kind of money off of it. They will start making offers to get payment.....I know its a hassle with the phone ringing non stop, but if its not creditors, the solicitors will drive you crazy

I have tried to deal with sprint before and the same with the credit card company. I wish I could get a loan to pay it all back, I would do it in a heartbeat. My credit is screwed already so bankruptcy won't hurt it any more I'm sure.

I really don't make enough to pay it back. I don't have a cell phone. Just rent, bills car insurance gas and food. It's hard to survive on $10 a hour at 40 hours per week when rent is $500 utilities are around $300 a month and $80 a month insurance.

I had a decent job making $15 a hour but I got laid off and couldn't pay anything at all. This sucks but I will figure it out

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Originally Posted by bman123

It's hard to survive on $10 a hour....I had a decent job making $15 a hour but I got laid off

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If this change in your employment happened after your child support amount was figured out, then you are eligible to have it reduced based on your change in circumstances. You may need to prove you were laid off, as opposed to quitting or being fired for something that was your fault, so try to get something in writing from your old company if you don't already have it.