I ve owed obout 30k to credit cards.i m behind my payments for 3 months.sould i file chapter 7 or consalidate?

Question

I ve owed obout 30k to credit cards.i m behind my payments for 3 months.sould i file chapter 7 or consalidate my debt ??which one of the option will be best for me in the future credit life??plz somebody tell me

Answer 1

Best Answer - Chosen by Voters

Restructure and repay all of your debt. It is money YOU owe. You need not worry about future credit until you have repaid most of your current principle. Legitimate non-profit credit counseling is your first step.

Answer 2

Your best option is to get a job and pay your bills.
Good luck.

Answer 3

That is a lot of money to owe on credit cards :-(

If you go chapter 7 it will take several years for you to regroup but if you are young enough it might pay off. It is not as easy as it used to be though.

If you consolidate, they have new rules. The more money you make over your payment period (usually 5 years) the more money they take....it used to be that they would consolidate and reduce the debt down to a certain amount and you pay it back - not anymore. Now, when you get a good job - your payment will increase and you will still pay over 5 years or so. I have a friend dealing with this right now...he was making $40K and they wanted $350 a month...he went up for 6 months to making about $15K more and they wanted $550. He owes about the same as you.

When you are done with this, if you cannot pay it off immediately or save for it - don't buy it. I started doing that about 10 years ago and I have accumulated some good money. Now when I ask myself...do I really need this or that...nope..... Most of the stuff my friends buy is garbage within a year. Waste of money to keep up with the Jones.

Good luck.

Answer 4

There are some nonprofit credit counseling groups out there, just avoid the scams. It would be based on your specific information. There is no general rule. Get their advice.

Sometimes, bankruptcy is the best option, recognizing it destroys your credit in the short term. But many times, it isn't the best option, especially if the credit card companies are willing to work with you.

Answer 5

Considering how much you owe and depending on what you make I would say Bankruptcy for less than 1000 you will have a fresh start vs all your bills and the percentage of the income they will take you will rebound faster from bankruptcy even though that will show on your credit report because you will have that money free instead of paying hundereds of dollars per month and barely paying them off

Answer 6

you won't be allowed to file chap 7 with that much credit card debt - you will have to go chap 13 and pay part of that debt over 5 yrs - court-monitored - and no one is going to lend you 30,000 to consolidate your debt

bankruptcy is bankruptcy - your credit will be ruined for years and why do you care? are you planning on going out and getting into debt again?