bankruptcy payment advices
Bankruptcy: Need some advice?
To make a long story short, I am young and messed up my credit. My living expenses and earnings are within 300 dollars of each other. My debt is around 15,000 — that excludes my student debt. If I ask to make payment plans, which doesn’t include my school debt — I am looking at spending the next 6 years paying off my debt. However I’ll still have my school debt accruing interest and not getting paid off. So then I’m stuck back to square one with a debt I cannot pay off (pay off 1 or the other it feels like for me). Sadly I’ve looked to bankruptcy as a viable alternative. However I wanted to know if there is a minimum limit on which 1 can file for bankruptcy? Is my sum too small?
Please don’t cast your judgments. I just need some advice.
Thanks.
Well, here’s the problem. Student loan debt, assuming you took government backed loans, cannot and will not be included in an bankruptcy. You will always owe them until they are paid, or you die.
You can file bankruptcy, but due to the small sum, you will probably be forced to file chapter 13 which means you will have to pay most of the debt back by making monthly payments.
So you have a choice, spend 5 or 6 years paying off the debt on your own. Or further damage your credit by filing Bankruptcy and still spend 5 or 6 years paying off the debt.
If I were you I would call each company one at a time, as you can afford it, and offer to settle for 50% of the balance owed.
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