what happens to your debt when you file for bankrupcy? should I file? I don't qualify for any credit as it is?

Update:

I can't find a job and I don't want to pay debt with debt

I'm just making ends meet because i'm staying at my parents place and have used financial aid to support myself while i'm going to college...i've had a jobs but the recent one i've had I was laid off and the pay sucked

Update 2:

when i' done with school my debt probably be around 45k plus interest

Update 3:

I am TRYING to get a job but no one will give me a job idiot

Update 4:

don't give me a job fine i'll just file for bankrupcy if that's going to benefit me

Update 5:

Alex your stupid you want to pay my bills? how can I pay my bills with no job? moron

Update 6:

i'm worried I won't find a job that will pay off my student loans

5 Answers

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  • 10 years ago
    Favorite Answer

    UK - you can only file yourself if you owe £15,000 or more. There will be a fixed Court fee to pay (about £500)

    All your assets (things you own) will be taken and sold off to raise money to pay off your creditors (people you owe). This will include your house (if you have one), but not the 'tools of your trade' (so you will only get to keep your car if you need it to perform your existing job - so expect to take the bus).

    All your debts are frozen (no more interest or charges added), all your Credit, Debit, Bank & Savings accounts will be closed. You will be allow one 'basic' bank account (no cheque book, no overdraft but you will get a Debit (not Credit) card).

    You will have 7 years to pay off all your frozen debts. As soon as you manage to pay it all off you are 'discharged' from bankruptcy. If you don't pay it all off, after 7 years anything you have not paid off is canceled and you are 'discharged' anyway.

    It is unlikely you will be able to get a Credit card for at least 2 yaers after being 'discharged' (for a Mortgage, expect to wait at least 3 years, possibly 5).

    Check the .gov.uk web pages - an IVA or other solution may be a better path ...

    WARNING = there are many 'Debt Counselors' and cowboy 'consultants' & 'agencies' who will happily rip you off and leave you in a worse situation than you are now ..

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  • CatDad
    Lv 7
    10 years ago

    Assuming you live in the USA, student loans cannot be discharged in bankruptcy, so if this makes up the majority of your debt load then there's no point in even considering filing for Chapter 7.

    If you have non student loan debts that are at least $10K and are beyond your ability to pay back, then you may want to consider filing for Chapter 7....Honestly, it's not going to do a lot of good with the $45K in student loans.

    Chapter 7 discharges private debts like credit card debts and personal loans so that they won't have to be paid back.

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  • Anonymous
    10 years ago

    depends on which type of bankruptcy you file for - chapter 7 or chapter 13 - only a lawyer can tell you what you qaulify for and you will have to pay a lawyer UP FRONT for ALL filing fees and his charges before he will start to do anything - probably costs $2000+ now

    and some school loans cannot be discharged by bankruptcy - you could be stuck with them forever, with their balances increasing from insurance and late charges

    have you signed up at temp agencies - lots of companies use them for hiring permanent employees - My last 4 perm jobs going back 17 yrs started as a temp

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  • aziz
    Lv 4
    4 years ago

    as quickly as you report for financial ruin you lose your credit...in certainty no credit employer grants you a card until the financing is thoroughly ridiculous...that's recommended which you do no longer report for something until you relatively have no selection. you will no longer have the skill to have a credit card for about 7 years in case you report for financial ruin.

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  • 10 years ago

    pay your bills hippie, GET A JOB!!

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