Im thinking about filing chapter 13 and doing debt consolidation, any thoughts or experiences?
silverblack12345 asked:
I pay all my bills on time (for the most part) but it’s nothing but the minium, I was thinking about doing chapter 13 debt consolidation, is this wise?
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I pay all my bills on time (for the most part) but it’s nothing but the minium, I was thinking about doing chapter 13 debt consolidation, is this wise?
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@ June 13, 2008
avoid it if you can!
If you give more details on your situation, you will get a better answer. If you can make the minimum, can you make slightly more than the minimum? If the answer is yes I would don’t declare bankruptcy. It will haunt you for many years if you do.
what about just trying the debt consolidation w/o chapter 13? it will significantly reduce your interest rates, and it only effects your credit a little bit, not as much as chapter 13.
All bankruptcies look the same on a credit report. If you wish to start over, and you are able with the new bankruptcy laws in effect, file chapter 7. Then discipline yourself and stay out of credit trouble. My wife and I filed chapter 7 last year. We reaffirmed our mortgage and kept 1 car; we let go an expensive SUV, credit card, and medical bills. We are in great shape, and have learned our limits.
Bankruptcy will be on your credit record officially for something between 7 to 10 years, but the stigma of it never really goes away. You might be filling out a job application 25 years from now, and if they ask if you’ve EVER declared bankruptcy, you either have to tell them or risk the possibility that they will find out themselves (it is a public record). I think it would be a very bad choice if you can find an alternative.
If you can just find a way to commit to paying an extra $100 per month (maybe a 2nd job?), I think that will be much better in the long run.
Kiss your credit score good-bye.
if you can aviod it, do. this will stay on your credit history for 10 years.that’s a long time.there are other ways to consolidate , like creidt couseling, or even a consolidation loans. try to find something that will work for your needs and boost your credit score up instead of down!!
If you can make the minimum payments, you will probably do better with a debt consolidation loan. These typically lower your minimum payment and they won’t ruin your credit score. With the lower payment, you can now pay more than the minimum and get out of debt a bit faster.
Bankruptcy is much more difficult now and will damage your credit score for years to come. Avoid at all cost.
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