yes, chapter 13

If you go bankrupt, file your bankruptcy under Chapter 13. Chapter 13 permits an US resident to reorganize and restructure their finances. It allows you start afresh and get your finances back on the track. The bankruptcy court will supervise and authorize the entire process of overhauling your financial situation.

While filing for bankruptcy under Chapter 13, you have to draw up a plan of action meant to pay your dues within the next 3 to 5 years and submit to the bankruptcy court. You should clear your dues as much as possible at frequent intervals. Filing under Chapter 13 will protect you against the undue pressure exerted on you by your lenders to pay your debts.

Lots of people think that once they’ve filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn’t always true, there arewill help to improve your credit history in a number of different ways.

It’s a real option. With no home to loose, I’d look into Chapter 7 vs. Chapter 13. In 7, you basically just walk away from your debt. In 13, you pay a portion back. However, you must do all this through an attorney. However, their fees are rolled into the bankruptcy action. You are going to pay something, but nothing like the 50k+ – nowhere near it.

The real problem with bankruptcy is the lasting effects afterwards. If you will be content living in apartments and driving what you do now, for the next few years, then investigate. However, if you are planning to get married, buy a house, and start a family in the near future, a bankruptcy will haunt you badly.

In any case, you owe it to youself to at least investigate it. Find an attorney – the initial consultation should be free. And the fact that you have little to loose (no mortgage) and as young as you are, I’d seriously consider it.

Some people wouldn’t file for bankruptcy just because of medical bills. I have known of some people that just make small payments on it until it’s paid off and I have heard of others not paying them at all and just waited the 7 years until it gets deleted from their credit report.

I am not suggesting for you not to pay your bills, but if you file for bankruptcy this will stay on your credit report for 10 years as a negative.

Wish you lots of luck….

If you don’t mind having to pay approx $700 in atty fees, and you are ok with your credit tarnished with a Chapter 7 for the next 7 or 10 years (I can’t remember which), then yeah you should.

If you aren’t sure, the best thing to do is see an attorney for a FREE consultation and see whether or not its worth it. Also, the bankruptcy laws have changed last year.

I would not file yourself. And, if you do end up filing for bankruptcy, PLEASE get a copy of your credit report from ALL 3 agencies (equifax, experian, transunion) before your petition is typed up, otherwise there are fees to amend – to add creditors before you’re discharged.