Chapter 7 vs. consolidation
Date: Wed, 04/20/2005 - 14:07
Chapter 7 vs. consolidation
Would it be better for me to file ch. 7 and start all over again, or should I consider consolidation?
Please help!
Hi esperedenuit2001 You wrote Quote:I have about $40,000 i
Hi esperedenuit2001
You wrote
Quote:
I have about $40,000 in credit card debt with no assets. |
I think that debt consolidation will be a better deal for you as you don't have any property to qualify for a chapter 7 bankruptcy. You can go through the whole article for extensive knowledge at http://www.debtconsolidationcare.com/chapter-7-bankruptcy.html
Having no choice left and not making any appreciable and significant improvement in your already existing debts, you can opt for debt consolidation. You can have a look at this site http://www.debtconsolidationcare.com and register yourself for free so that a counselor after tailoring your needs can suggest you the best applicable program. Decide wisely and don't delay in making the optimistic step as you are already behind in your existing payments.
Keep in touch
Regards
Roxette
Re: Chapter 7 vs. consolidation
[quote=esperedenuit2001]I have about $40,000 in credit card debt with no assets. I always make my minimum payments, but I'm making no dent in the balances, and almost all of my income goes to pay these minimum payments.
Would it be better for me to file ch. 7 and start all over again, or should I consider consolidation?
Please help![/quote]
The new bankruptcy law takes effect 6 months from today. With this new law, they can determine that you still need to repay your debts even after bankruptcy. So having to deal with a bankruptcy and the continuing payments would not be beneficial to your situation.
You should look into consolidation and debt settlement first. With consolidation, you can reduce your interest and monthly payments. A debt counselor would be able to help you develop a plan to repay that amount within a few years.
Because at this moment, your strategy is ineffective for eliminating this debt. In order to make a worthwhile dent in your bills, you should select the debt with the highest interest rate and pay above the minimum payment on this bill. You should attack each bill in order (based on interest rate) in order to quickly eliminate each debt one by one.
However, when you pay the minimum for all, you are effectively ensuring that you will have to deal with these debts for many years to come. A credit counselor will be able to help you develop a plan for attacking each bill one by one.
Let's see what esperedenuit2001 has to say after these couple of
Let's see what esperedenuit2001 has to say after these couple of posts.
Roxette