Before I begin, I ask that you please not kick me while I’m down. I had access to high credit lines because my business and cash flow were strong for many years. However, last year things began to slow down significantly, and my income took a major hit.
I grew up in a financially struggling family with limited financial literacy, but I thought I had it all figured out. For eight years, my credit score was 764, but everything came crashing down last October. While trying to sustain my online business amidst rising costs, I accumulated debt just to make ends meet, which only made things worse. Over the past year, I haven’t made any profit or income.
Since September, I’ve applied to over 800 jobs with no luck. I’ve been doing everything I can to get out of this hole. I went to college and graduated summa cum laude with a Bachelor’s degree.
I was managing to make payments on everything, but now I see that I won’t be able to cover my payments for September, and I’m almost out of money. I’ve never faced anything like this before. I can’t even afford groceries or food.
I’ve decided to move in with my parents temporarily to try to figure out this mess.
I don’t have any loans, and my car is paid off, but all my credit cards are maxed out because I was using them to cover costs (despite taking losses). Now I’m stuck with $100k in credit card debt.
I’m scared and need help and advice. I feel like my life is ruined, and I don’t know what options I have.
Can you declare bankruptcy under Chapter 7? Breathe; you can recover from this; you are young. It will be alright; in fact, I’ve found employment on a job board called www.idealist.org, which is, in my opinion, superior to Indeed. I hope all goes well for you.
My brother, I feel you, even though I’m just thirty thousand miles away. This resonates deeply with me because I was earning a nice living before losing it. Though I don’t have much advice, I want you to know that you’re not alone. I hope you succeed beyond all expectations!
My only true piece of advise is to picture yourself in five or ten years. Ideally, debt-free. And consider the steps necessary to get there. Continue to have faith that you will succeed. I avoid all the existentials because of this. Everything will improve. I hope this is useful.
The same.
27, This year, my business failed. I owe 19k on credit card debt, 25k on mandatory MCA loans, and have two 80k trucks. I haven’t paid anything at all on my credit cards or loans for the past two months. Simply said, “Screw it,” and returned to working for another company. I just got through my first week. To start over, I’m going to file for bankruptcy.
Yes, I suppose I should give bankruptcy some serious thought. It’s amazing how quickly life can alter. Everything is going well at first, and suddenly things change drastically. wishing for everyone’s success and improvement
$100k in debt at 25? Living with your parents? Own your primary vehicle outright? No job? No income for several months?
Declare bankruptcy!
Yes, it will hurt your credit, but your current situation is already damaging it. Declaring bankruptcy could actually improve things. They won’t take your primary vehicle.
Once you’re free from this debt, you can start rebuilding your credit. You can still buy a house even with a bankruptcy on your record, though it might be a bit more challenging. After 10 years, the bankruptcy will no longer appear on your financial history.
So, declare bankruptcy, rebuild your life, and don’t let yourself drown trying to stay afloat in the middle of the ocean.
Big banks will file a lawsuit if you don’t pay back any of those credit cards. My best recommendation is to give the credit card issuers a call and arrange a payment schedule. The majority of larger businesses offer interest-free 60-month payment plans. You know they won’t sue you for the money, but it will take a long time for this to pay off. The issue is that not all businesses provide this as a choice. Bankruptcy is the second choice. You can begin repairing your credit after the debt is fully erased. It remains on your record for a period of seven or eight years, but the payments cease. Speak with a lawyer about that so they can explain the drawbacks because I
It’s not a reason to be ashamed of a firm that failed in our unstable economy! It’s incredible that at your age, you took such a chance and followed your passion! You’re not careless if you have no debt and your automobile is paid off. You made the best effort you could with this being a business matter. I personally know two persons who filed for bankruptcy on behalf of their businesses and went on to become prosperous entrepreneurs in the travel agency and carpet industries. Seeing an attorney could, in my opinion, make you feel more at ease.