Thinking about filing for BK
Date: Mon, 02/09/2009 - 14:58
My financial situation has gotten to the point where I am thinking of filing for bankruptcy. I get collection calls every day, a lawyer is threatening to sue me, and according to my credit report I have about $20,000 of consumer debt. About $5,000 of that is a car loan that I am current on; the other debts are charged off credit cards, medical bills, etc. I also have $20,000 of student loan debt, and about $12,000 in back taxes that I owe. (I'm not sure of the exact amount -- I haven't filed taxes in three years because I'm scared to find out how much I owe.)
Should I consider filing for BK? My credit is completely trashed and I can't afford the debt. I really don't want my wages to get garnished because I've read that a creditor can take up to 25% of your take-home pay. I use that money every month to feed myself and take care of the car. It's my only disposable income and if I lose it, I'm screwed. Will my failure to file tax returns come back to haunt me in a BK? Can I even file a BK without them?
I am freaked out beyond belief. Help!
ETA: I know Chapter 7 is a liquidation BK. I have no assets and don't own a house or anything. Does that make Chapter 7 the best choice?
Should I consider filing for BK? My credit is completely trashed and I can't afford the debt. I really don't want my wages to get garnished because I've read that a creditor can take up to 25% of your take-home pay. I use that money every month to feed myself and take care of the car. It's my only disposable income and if I lose it, I'm screwed. Will my failure to file tax returns come back to haunt me in a BK? Can I even file a BK without them?
I am freaked out beyond belief. Help!
ETA: I know Chapter 7 is a liquidation BK. I have no assets and don't own a house or anything. Does that make Chapter 7 the best choice?
im not sure about the tax return thing but that may be a serious
im not sure about the tax return thing but that may be a serious consideration that may come into play. There are other options out there that you can consider before bankruptcy like debt consolidation, debt management, and or debt settlement. I myself used a debt settlement company that worked great for me. But one thing for sure is you will need to do something soon, doing nothing will get you no were. Your credit is already trashed so you are going to do what you have to do to survive.
if you dont know the difference between these options post again and we will explain it to you. But first consider alternatives to bankruptcy. these alternatives will get your credit back on track faster than bankruptcy.