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Question By
kingtidus390

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0 People Helped
Would Bankruptcy give me the ability to build my credit again?
I have $5277 in credit card debt, from three credit card companies, Best Buy, Paypal, and Care Credit.
The interest rates are so high that I can never afford to pay the minimum payments(although Best Buy is the only reasonable one). I am lucky to make $800 a month not including my future wife's income, and our rent is $595 a month and after all utilities are paid we are lucky to have $35 left to our names. My credit score is now down to 541 and I currently have a payday loan from an online company and due to an unforeseen circumstance I was unable to pay it back when I said I would. That company currently has been automatically been taking $66 out of my bank account regardless of whether or not I pay the minimum payment.

Now my question is, if I were to file bankruptcy would it be worth it with my current situation? Would it stop the collections and allow me to start a good line of credit with another credit card? I feel that if I was able to start over on a credit card with a small limit, I might be able to build my credit, would bankruptcy be the way to go or is there a better alternative?

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Top Contributor
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I filed chapter 7 owing in excess of 22,000 dollars on a medical bill. I was in my mid twenties when i filed. Now in my mid thirties its hard to get credit anywhere because of my bk it stays there for ten full years. Every case is different in your case find a reputable bk lawyer and ask about ALL your options unless you can live with it do not file for bankruptcy ownly as a strict last measure. Even chapter 13 stays there seven years and you still have to pay back hope this helps you out a little. 

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