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Mr 5 0 · 01-09-2002, 05:22 PM

Tough call.

I know people who've done a bankruptcy and came out fine but I can't recommend it as a solution.

Contact a bankruptcy attorney. You can find them in the Yellow Pages. They will usually talk to you for free (consultation) and give you the facts. It's not free to file; I think it's around $250. plus attorneys charge around $500. to do the work. You can do it yourself but I imagine it's quite a hassle...still, it might be worth it to save the attorney fee but if I were doing it, I would use the attorney just to protect myself from some legal screwup.

I know that after being discharged from bankruptcy you can get credit but it's a rather expensive process. You can start with a 'secured' credit card (you deposit money in the bank and they give you a credit card with a limit that equals the amount you have on deposit). Some car dealers and small stores will extend credit if you come up with a BIG down payment, first. Of course I would avoid using credit cards once you get past this difficulty. Use a debit card and only buy what you can actually pay for. Saves a lot of grief.

Bankruptcy is not the end of the world, especially when you're young and don't have a house to lose.
I would recommend talking to the credit card companies first and trying another way to resolve this but if all else fails and you are willing to suffer the possible consequences (bad credit record for seven years) then at least look into it. Of course, you're defaulting on an agreement where you promised to pay back what you charged but if you have no moral problems with bankruptcy (some do) and cannot possibly repay this debt in a reasonable time-frame then you'll have to do something so bankruptcy may be the way out...or maybe not.

There are bankruptcy websites with lots of information. Use your search engine; just type 'bankruptcy' and see what you get. At least it's a start - and free. You may get some fresh ideas.

Credit counciling is a great idea but it can't do a lot for your situation if you have zero income and no real assets. Creditors want some kind of payment; reduced, stretched out or whatever, but going to them empty-handed won't cut it. Perhaps one of the credit counciling services can aid you with this aspect and get the repayments put off until you're working again. Clearly worth looking into, as I'm sure you will.

Hope this all works out for you and that a job comes through soon.

Good Luck.

01-09-2002, 05:22 PM	#4
Mr 5 0 Conservative Individualist Join Date: May 1997 Location: Wherever I need to be Posts: 7,487	Tough call. I know people who've done a bankruptcy and came out fine but I can't recommend it as a solution. Contact a bankruptcy attorney. You can find them in the Yellow Pages. They will usually talk to you for free (consultation) and give you the facts. It's not free to file; I think it's around $250. plus attorneys charge around $500. to do the work. You can do it yourself but I imagine it's quite a hassle...still, it might be worth it to save the attorney fee but if I were doing it, I would use the attorney just to protect myself from some legal screwup. I know that after being discharged from bankruptcy you can get credit but it's a rather expensive process. You can start with a 'secured' credit card (you deposit money in the bank and they give you a credit card with a limit that equals the amount you have on deposit). Some car dealers and small stores will extend credit if you come up with a BIG down payment, first. Of course I would avoid using credit cards once you get past this difficulty. Use a debit card and only buy what you can actually pay for. Saves a lot of grief. Bankruptcy is not the end of the world, especially when you're young and don't have a house to lose. I would recommend talking to the credit card companies first and trying another way to resolve this but if all else fails and you are willing to suffer the possible consequences (bad credit record for seven years) then at least look into it. Of course, you're defaulting on an agreement where you promised to pay back what you charged but if you have no moral problems with bankruptcy (some do) and cannot possibly repay this debt in a reasonable time-frame then you'll have to do something so bankruptcy may be the way out...or maybe not. There are bankruptcy websites with lots of information. Use your search engine; just type 'bankruptcy' and see what you get. At least it's a start - and free. You may get some fresh ideas. Credit counciling is a great idea but it can't do a lot for your situation if you have zero income and no real assets. Creditors want some kind of payment; reduced, stretched out or whatever, but going to them empty-handed won't cut it. Perhaps one of the credit counciling services can aid you with this aspect and get the repayments put off until you're working again. Clearly worth looking into, as I'm sure you will. Hope this all works out for you and that a job comes through soon. Good Luck.