Question about bankruptcy or debt consolidation?

Question:

EX-wife left me with a ton of debt (credit cards, loans, etc.) and although i have a well paying job, i don't think that I will have enough to support myself, my kids and a child support payment. My question is, would it better for me to declare bankruptcy or try to consolidate my debts and pay it off. ( i don't like oweing anybody money) And if i file for bankruptcy, how much will this cost? Are there personel consultants to look over my debt and decide... Also my credit is horrible as i spent all my money paying for a divorce... Any answers would be apreciated.

Answer:
Bankruptcy costs vary from state to state. Be aware under the new laws, you could declare and still have to pay off some of those debits anyway.

Might try a consult and see what the atty says.

Try to pay off your debt. If you file for a BK then it will be on your credit for 7 years and then your scores will be real bad. This will effect you in buying a home, cars, etc. Call the creditors explain your situation and ask for payment plans and maybe some sort of relief from you payments?

Unfortunately, the bankruptcy laws have changed significantly so consolidation may be an alternative. There are a few tricks that you can use to perhaps gain a consolidation loan but it really depends on what your starting with FICO wise.
Shoot me an e-mail if your interested in working with someone.

Bankruptcy may only stay on your credit report for "7 years", but the folks who did not get paid the money they were owed NEVER forget, trust me!

Work out a plan. It's always worth approaching each creditor, explaining your situation, and asking if they would be willing to settle for maybe 50 cents on the dollar instead of you filing (in which case they might get nothing at all).

I went through the same exact thing and I went with the cheapest backruptcy lawyer I could find. I am so glad I declared bankcruptcy because it got creditors off my back, wiped my slate clean. You can get it done for $500. The best thing it has done is taught me how to live without debt!! Just stop paying people until you find a cheap lawyer. It takes years for a creditor to get any money out of you if they ever succeed at that at all and you have bad credit anyway so who cares. I'd take this chance to learn to live without debt and get out of those chains that have everyone but you profiting. Now I have plenty of cash to pay the ex and live. Now I just save for used cars instead of financing. It feels great and I never plan on becoming a finance company's sucker again. However, I'm not sure about the most recent laws, so consolidation may be a better alternative if bankruptcy doesn't cover the type and amount of debt you have.

You'll know after visiting your local bank or credit counselor.

They'll tell you the truth regarding your capacity to borrow some money.

If you do not qualify at the bank, take a look on the web for major finance companies or banks ( Bank or America, Capital One, ING, CitiFinancial...)

And look up for some strategies to improve your credit rating.

Good luck !

Question about bankruptcy or debt consolidation?

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