Should I declare bankruptcy?

I know that for my age, the question about declaring bankruptcy seems crazy, but here's my situation.....I'm 23, single, and currently out of work. Like a lot of folks in this day and age, I am having an extremely tough time finding work.

My situation is that I am $6,000 in credit card debt. My total debt(including student loans from college) is $11,000 but since you can't get rid of federal student loan debt, I'm just focusing on the credit cards. So like I said, I have around $6,000 of credit card debt over the course of 7 credit cards. Four of them are almost paid off(should be zeroed out within a year), while the other three are nearly maxed out. Those three cards account for almost $5,000 of that $6,000 debt. I figured out that my total monthly payments for the 7 cards comes out to $194 a month. I have run out of funds saved up from previous jobs and just can't afford to pay them anymore. Is declaring bankruptcy a feasable option or am I being over-dramatic?

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  • Mark
    Lv 4
    1 decade ago
    Favorite Answer

    you are being WAY over-dramatic! You've hit a hard time in your life, like many people in this day and age. You're out of college and you can't find a job---but you WILL, you just have to work hard at the job hunt and keep your head up high. Be confident! 6,000 in credit card debt isn't THAT bad, and you can call up your credit card companies to explain your situation--they will be willing to work with you as long as you don't stiff them! I've been in this situation before and I know that you can easily dig yourself out of your debt. What you need to do is consolidate all those credit cards onto one card, with 1 payment. If you don't have a credit card with that high of a limit I would suggest applying for a new card, try Citi, they always have 0% for 12 months on balance transfers. Get all your credit cards into as few monthly payments as possible, you may need to split it over 2 cards depending on your credit. But DON'T even THINK about bankruptcy yet--you're 23 and you're going to want to buy a house eventually, right? Think about the future, not just the present. Times are rough right now for many, but things will get better for you. Give it some time!

    Source(s): Personal Experience
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  • 1 decade ago

    There are cases when bankruptcy is an only option but at 23 you should focus on the solution rather than the problem. Once on your record a bankruptcy will do more harm to you than just 10 years of messed up credit. You may end up finding employment even harder with the question, "have you EVER filed bankruptcy?" ... Your interest rates and even insurance rates will forever be higher. I don't think that it's worth bankruptcy for "only" $6,000 when you are so young. Focus on finding a job... or two jobs... to get those debts paid off asap. Partner with fee paid employment agencies, get your buns (pardon the pun) to the nearest McDonalds, sell stuff you have that you don't use, and take in a roommate. Do whatever you have to so you can increase income and/or reduce expenses. Consider your own business installing appliances or painting rooms or babysitting or whatever you are good at. Sell things on Ebay not only for yourself but for neighbors and local businesses. The debt isn't going to go away by itself. Without an income, NOW is the time if you are thinking about bankruptcy but seriously think about it and how it will affect your future. It's hard to find work when your objectives for title or salary are higher than your market but there are jobs out there if you lower your standards. Even $8 an hour is better than sitting around waiting for a $12 an hour job or zero income.

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  • 1 decade ago

    If you someday want to buy a house, they will ask you if you EVER declared bankruptcy, even if it's longer than ten years from now. It will make getting future credit really hard.

    Take any McJob you can, two or three jobs at once, even if it's beneath you and it's minimum wage. Sell the stuff you bought for the $6,000. Learn some skills you can sell to others, even if it's programming people's cell phones or typing their college papers. Figure out ways to cut expenses and increase income. Keep paying down those cards. $6,000 isn't bad. Learn from this. If you declare bankruptcy (and it's a lot harder to do now), you'll never learn how to stay out of this situation in the future. Really, don't do it.

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  • 1 decade ago

    . As an individual, you can select between Chapter 13 or Chapter 7 bankruptcy. Selecting between the two is not easy. The bankruptcy court will study your circumstances before deciding which type of bankruptcy is applicable to you.

    The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.

    Once you file for Chapter 7 bankruptcy, the bankruptcy court assigns a trustee who works as an intermediary between you and the debtors. He oversees everything and checks out if the bankruptcy plan is going as planned.

    http://get-out-of-the-debt-trap.com/category/Infor...

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  • Anonymous
    1 decade ago

    Trust me when I say $6,000 is not a big debt. Do not even thing the word bankruptcy. Just let it ride until you get a job. If you could get some suppose from your family, fine, if not don't worry about it. There is no debtors' prison so stop worrying so much.

    Source(s): Retired bill collector 35 years.
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  • 1 decade ago

    i dont think you should. once you declare bankruptcy its on your credit score for like 10 years, and you will have a lot of trouble getting financing for anything after that. its only 194 a month, its not that big of a payment. i think that if you owed like over 15k you should, but you only owe 6k, which is not that much. you should just try to pay it off nd try to avoid bankruptcy any way you can.

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  • Anonymous
    1 decade ago

    I say you should. I mean, you won't be able to do alot of things for the next 10 years, such as buying a house or taking out a loan, but if you have family, they can buy your house or take a loan out for you. It really isn't that bad. My cousin had a 6 car pileup and broke a traffic light pole, which equated to $170,000 worth of damage and he didn't have insurance. He declared bankruptcy and now his parents and/or siblings do the things he is unable to do because of his bankruptsy.

    Source(s): "do the things he is unable to do because of his bankruptsy" LOL I make it sound as if my cousin is incapascitated. No but seriously, I've seen it and it isn't that bad. Gotta trust your family though.
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  • Anonymous
    1 decade ago

    Lots of people think that once they’ve filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn’t always true, there are<!--always ways to improve your financial standing, and there are also ways to repair your damaged credit rating.

    http://best-loans.awardspace.com/Bankruptcy.htm

    In fact one of the best ways to improve your credit rating is to refinance your home mortgage, this-->will help to improve your credit history in a number of different ways.

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  • 1 decade ago

    Filing for bankruptcy is not cheap..and it may not even be approved because believe it or not...your debt is not that horrible.

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  • Anonymous
    1 decade ago

    Beware ill informed advice at this time.

    Mine (advice that is) is to consult an accountant....cos whatever you can't afford to do is to ignore my advice.

    There are strategys to make bankrupcy a real and attractive option to "manage" your debt and eventualy have it struck out.

    Just recall news reports of "tycoons" using such ploys to evade their creditors.

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