Where to go from here

Submitted by Anonymous (not verified) on Tue, 09/28/2010 - 05:41
Forums
Credit repair

Hi,

I had bought a home a year ago that has left me a broke. First I had to repair the basement as it had severe damages. Not only this, it had been just one thing after another. It has taken every penny I have had.

Now, I can't pay my bills. I have $5000 in credit card debt and also a car loan. The home is causing me health problems too but I can't even afford to go to the doctor. Can I file for bankruptcy?

I am need of some serious help. I had excellent credit before this.

Aaron

Hi Kaedee,

I think before you decide to file bankruptcy, you can talk to your creditors about the financial crisis you are in and ask for a repayment plan. Your outstanding debt amount is not that big. I think you can try to get a part time job.

However, if things does not work out with your creditors, and if you really don't have the money to handle your debts, you can file bankruptcy. Now, if you file bankruptcy, you will have to decide under which chapter you are going to file. If you want to file chapter 7 bankruptcy, your income must be below a certain level.

However, you can file chapter 13 bankruptcy too. It is more like a repayment plan where the interest rate and late payment fees do not accrue. This repayment plan is issued by the court. So, you need to think under which chapter you will like to file.

Thanks,

Aaron

Tue, 09/28/2010 - 07:17 Permalink
Kim K (not verified)

Hi Kaedee,

If you decide to file bankruptcy first consult an attorney. It is very important to take advice from an attorney. Moreover, nowadays most of the attorneys offer free service. So, find out one such attorney in your area who offers free service.

Thanks

Tue, 09/28/2010 - 11:45 Permalink