I was unable to work after I became incapacitated, thus I currently owe over $20,000 in credit card debt. For the past two years, I’ve had to use credit cards to make up for lost income. With 90k in bills, my household’s income dropped from over 90k to under 30k. I’m thinking of filing for bankruptcy, but I have no understanding how that process works. I was never taught about money or anything financial literacy. Therefore, try to explain it as though you were speaking to a toddler.
Are you still going to have 90k bills after bankruptcy? If so, nothing will be fixed by this. After you modify your way of life to fit your new income, perhaps the financial reset that BK offers you will make sense.
No if I paid off my credit card bills I’d have poverty level bills. I’ve been drowning because we made some major purchases just before I was supposed to be off work, and then we had a baby and other unforeseen bills. However, we’ve been paying everything off with our incoming money and utilizing the credit cards to purchase necessities like groceries. After the debt is paid off, our meager income will be sufficient to support us.
File the BK if you can get your spending under your income.
Even if you are unable to, nonetheless file the BK.
You can probably go get the relief now that you’ve used up all of your “borrowing from everyone” options. The game is ended and you can’t afford to pay it back.22 is that, unless you look up how to file pro se, you must pay the lawyer money and fulfill filing fees and other requirements.
It really worked for me. Along with keeping my house and car, I paid off all those pesky expenses. There will be a dip in your credit score, but mine improved in a year. Google “bankruptcy attorney near me.” The fee range is $1200–$2000, and they will demand payment in full.
After filing for bankruptcy, what happens next? If you are still making 30k and spending 90k, bankruptcy is not the solution
Here, Underwriter—don’t declare bankruptcy. There are far too many ignorant people on the internet who advise others to do that without fully understanding the ramifications. will cause problems with your finances and credit over the following five to 10 years at least. Since you are presently disabled, start by living below your means and negotiating with your creditors. They will make an effort to assist you and may even be able to lower the interest you owe on the credit cards if you are honest with them.
Your finances are severely disrupted by bankruptcy for a maximum of two years. After filing, you can obtain credit nearly right away, and two years later, you can finance almost anything, even a house, though it will still have an impact on your score. Although you will pay more interest than if you hadn’t filed, they aren’t very serious issues.
I reduced my annual income from 120k to 40k this past year. My house and cars are paid off, yet it’s difficult to pay nearly $1400 a month for insurance rates.
Don’t let someone intimidate you into not thinking about filing for bankruptcy. Instead of wasting years trying to pay off the debt, it will assist transform your life and allow you to start the process of rebuilding your credit.
If you’re sick and tired of the debilitating effect debt can have on a person, file for bankruptcy to end your debt and start over.