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OldChum

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Is bankruptcy right for me?
I have a very poor credit score with about 15k in personal loans, is bankruptcy right for me? And if i do file what will happen to my credit score, will it stay where it is and i just wont have any debts or will it just "disappear" and i'll have to start from scratch?

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Not recommended.

Helpful to 21 out of 24 people

If you file a bankruptcy, your credit score will drop even further and the hurt will remain for 10 years for a Chapter 7, 7 years for a Chapter 13.  And you would have to start all over rebuilding your credit, which takes time and (sometimes) frustration. I did a Chapter 13 years ago and am still working to improve my credit score.

If you haven't checked your credit reports in the past year, do so now!! Go to annualcreditreport.com and get copies of all 3 credit reports.  Look them over carefully and file a dispute on each wrong item with the credit bureau reporting same.  It's so very likely you'll find a lot of errors that, when removed, will improve your credit score.

In the meantime, work on repaying those loans in a timely fashion.  If you have credit cards, work on paying them in full and try to keep your utilization between 1 and 20% for the best grade there.  Avoid late payments and carrying a balance on credit cards.  As you improve your score, you'll find that you'll be able to get lower interest rates on future borrowing.

Hope this helps.

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Restarting sometimes can't be that bad.

Helpful to 11 out of 13 people

I have had perfect credit for YEARS, My living situation changed and I had to pay all the billsALL by myself.

At first I thought I could never file chapter 13,What would happen? Until I realized my good credit and name were not as important as keeping a roof over my daughters head and food in the house. My credit score went from 800 to 640 and the heartache to make this decision was worth ALL those sleepless nights! Its hard to get back on your feet , But do what you have to do.

I"m starting over. Happier than I've been in a long time. I Will rebuild my credit  AS I can Afford to.In the mean time I will be greatfu

To know I made the right choice.

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0 People Helped

Please give me some great references

Please give me some great references to help me pay off my old credit debt instead of bankruptcy. Need proof of paid in full

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Is bankruptcy right for me.

Helpful to 1 out of 4 people

I am a divorced father of 4.I work a full time job and have been in and out of the hospital over the past couple of years due to illness.My gf and I had a car which got repo'd because of my illness and missing work.I have accrued about 10-15K in the last several years.With being diovorced everything I make goes to keep myself above water and pay my current bills.I did go and buy a TV on in house credit from a local furniture store trying to improve my credit.I have paid my payments on time to them.My medical bills have been sent to a collection agency and they have gotten a judgement against me already on one.What's my best option.Anyhelp would be much appreciated.Is filing bankruptcy best for me.My current credit score is a 514.Please help me?

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