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kjb1966

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my credit is poor would i be better off filing bankruptcy and starting over
i have gone through foreclosure and also a repossession. also have several credit cards that have went to collection and a couple hospital bills. the amout is probably over 100,000 still owed. what do i need to do????

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Many people worry about their credit score being affected by filing bankruptcy, but ask yourself this question, how is your credit now, if you are unable to pay your bills on time and some of those bills have gone to collections, your credit has already negatively been affected. Many people look at bankruptcy as a blow to your credit, however having late payments, collection items and huge debt is also a terrible blow to your credit. I filed chapter 7 bankruptcy In November of 2012 and my credit went from around a 560 to a  673 and it is still climbing, I have been able to get a car, with a high rate of course and an unsecured credit card with a pretty high limit, both the car payments and  paying my credit card on time has helped to raise my score. Al though we cannot view bankrupcty as a way to quickly get rid of our bills, sometimes the only way is to get a fresh start and try to rebuild from there. I hope this helps and good luck with whatever you choose!

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Do you have the means to pay off these debts, even if means working out some sort of payment plan with the creditors? If you can, you definitely should. Bankruptcy is a last resort effort, where you basically say you can not pay this debt (particularly if the fees and interest are accumulating faster than you can pay it off), and future creditors will see it as such when considering you for a new line of credit.

A bankruptcy will stay on your report for 7 (chapter 13) to 10 (chapter 7) years. Although the impact will soften over time, a bankruptcy is a drastic blow to your credit, and should only be used when there are no other realistic options. That said, if your debt is accumulating faster than you're able to pay it off, it would be wise to resolve the matter sooner than later, so time can begin working in your favor.

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