which is better to do? credit cousleing or bankruptcy? also how did the bankruptcy laws chaange?
we have moved and are now having a hard time paying bills and most of our credit cards and personnal loans are 5 mths behind. we are at one (low) income and have no money to make these payments? any suggestions are welcome. i am looking for a job but in the meanwhile we are really hurting finacelly. we have even had to move in with my parents which is hard cause we have 2 children. i sure would like some help!
February 24th, 2009 at 12:16 pm
You are going to damage your credit ethier way so why not file for BK and get out of the hole you are in?
February 27th, 2009 at 12:41 pm
They changed the law so only the rich can file Bankruptcy. If you have nothing, they can’t take anything. Don’t worry about it so much and don’t give anyone your new address and phone number. Start anew…
March 2nd, 2009 at 9:05 am
Credit counseling is the better way to go of the two. Make sure you go to Consumer Credit Counseling. A lot of them are ripoffs. I have used them and they will sit down with you at their closest office and you will decide with them what your best option is. Their repayment plan works quite well. They get the interest charges either reduced or eliminated, and you pay them once a month. I even had it come out of my checking account automatically. Try that first. Good Luck to you.
March 3rd, 2009 at 9:19 pm
Credit counseling is much better – don’t file bankruptcy unless neither one of you have a job. Mow lawns, work at a gas station, grocery store, etc… until you can find the job you want.
Even if you can pay your bills write a letter explaining your current situation – every month – in lieu of the payment – even if you can send $10 with the letter that would be better than nothing. If you don’t send them anything they just assume you are defaulting on the loan and will treat it as such.
Once you are back on your feet and paying your bills on time write a letter to the credit bureau regarding you debts with bad credit and explain the move and loss of job. Although this won’t replace your bad credit – when creditors do look are your credit report they will see your explanation – instead of thinking you just blew off your bills
March 7th, 2009 at 7:03 am
you are going to damage your credit rating either way. but go see a credit counselor and take responsiblity for your spending. they will help you set up payments, work with your creditors, and most importantly you will be setting a good example for your kids. or you can take the cowardly way out and go for bankruptcy.
March 9th, 2009 at 8:03 am
Go for credit counseling. Under the new Bankruptcy Laws your debts DO NOT GO AWAY. This is the biggest change. You will get saddled for the rest of your life making payments after the bankruptcy. Yes the payments will be smaller but your credit will be ruined until you pay off the debt. With CC it may take you 10 years to pay, with the new BK laws you make take 20 but no credit for 27 and then you start from scratch.
March 9th, 2009 at 11:03 pm
As long as you have income, I would recommend a credit counselor. And this is the one I recommend:
Bankruptcy will stay on your record for years, and make it hard for you to move on, once it’s done with. You will lose your ability to have credit that way.
With credit counseling, you voluntarily close your charge accounts until they are paid off, and the interest rates are lowered. Your payments will be lowered as well. It’s the way to go, to get a truly CLEAN slate.
This link tells what the law changes were, and one of them is that you have to get credit counseling BEFORE you are allowed to file bankruptcy.
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March 12th, 2009 at 6:23 pm
First get some credit counseling quickly and see if you can re negotiate lower payments and forgiving part of the loans. You will be surprised at what can be done.
Bankruptcy is the last resort, but if it has to be, it is not the end of the world. Good luck
March 12th, 2009 at 10:42 pm
Sounds like there is more to the story than meets the eye. Try credit counseling and commit yourselves to living below your means until things work themselves out. Ignore the negative comments from the other posters regarding bankruptcy – use bankruptcy only if your income goes to zero; I know, that happened to me.