Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Bankruptcy
Profile Image

Question By
sstreiner

0 Contributions
0 People Helped
36yr 20k in auto debt 10k in medical bills ,5000 various loans chapter 7 a good fit?
seeking advice lots of debt from previous relationship . i want to start a buisness and a new life but this debt keeps me from it all . if i file chapter 7 will it help or hurt i have a current auto loan i'm paying and 2 positive loans .a ton of medical and auto loans in default . score s are mid 500's

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
7 Contributions
10 People Helped
Most Helpful Response

Careful consideration...

Helpful to 1 out of 2 people

Hi sstreiner, Bankruptcy is one of the hardest decisions you will ever make, and will affect you for the next 10 years. While it may relieve your ($35k approximated) debt right now, but you will feel the hit on your credit for at least the next 5 years. 

Many creditors like Chase, Citi, and Wells Fargo, have strict rules to not lend to those who have filed a BK 7 in the last 3-5 years. There are tons of alternates out there and great bankruptcy-friendly credit unions, but there are definite restrictions that exclude you from various things. 

For example, American Express will ban you from getting any type of account with them for the full 10 years as long as your bankruptcy is reporting. 

I think you may benefit more from a Chapter 13 as your payments will reduce the debt, much of your payments will be reported, and lenders look more favorable on folks who have filed Chapter 13 than Chapter 7. 

I hope this helps you, if you need more answers, there's a helpful blog about this kind of stuff over at (mrcredit700 DOT wordpress DOT com) 

Top Contributor
2045 Contributions
3169 People Helped

Helpful to 0 out of 3 people

Simple Answer ,  Do Not DO IT!

There are other ways to pay off your debt, 

look for the 7 Baby Steps by Dave Ramsey

Good Luck

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.