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Beebo52

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At this point with a credit score of 492 would it be best to file bankruptcy?
We are in our early 50's and would like to move and buy a home, we have to income at this time to make it happen, but do to identity fraud and severe medical problems our credit is in the toilet. We were thinking bankruptcy, but is the only way out?

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Top Contributor
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Filing Bankruptcy is the hard way out.

If you debt is high, you should consider all the ramifications of filing.

First,  Is it worth it.  The cost is usually starts around $3000 and can be up to 15% of the total debt. .  Some debt can't be taken care of in Bankruptcy, i.e. School loans.

A bankruptcy will stay on your report up to 11 years depending on which state you live in.

You chances of qualifing for a new loan after the bankruptcy greatly decrease for at least a few years after filing.

I would suggest that you do a little more research and talk with a credit counselor before taking that step.  Never approach a bankruptcy attorney for advice about filing. His job is to get into court and rack up fees so they will always advise filing.  I spoke with one gal that was advised by an attorney to file.  It cost her $3800 to get rid of $2000 worth of Credit debt and still left her with $50,000 worth of school loans that he did not tell her could not be discharged.

Check out the FTC site

https://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor

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