Options and debt in CC

I am a 30-year-old mother of two who lives alone. I have approximately $42,000 in credit card debt and loans, most of which I accumulated to support my children. I have spoken with a bankruptcy attorney, but is debt settlement a better option? Due to the fact that my credit score is between 580 and 600, I am not eligible for any debt consolidation offers. I do, however, spend half of my monthly salary on interest and minimum payments, even though I am current and not in arrears. Thus, debt is a never-ending circle. As a single mother, I’m having trouble paying off my debt. However, I’m not sure if I should file for bankruptcy or try to settle my debt.

It all depends on your goals for the ensuing two to three years. You should not be concerned about becoming bankrupt if you do not plan to purchase a home within that time frame. You won’t be able to describe the comfort you will have, and happily I’ve avoided the false remarks regarding bankruptcy. Naturally, your credit will suffer, but you’ll recover much faster than the length of time it appears on your report.
I would carry on your conversation with your bankruptcy attorney.

This explains why I’m so perplexed. I ask in one group, and everyone says no, you should save for chapter 7 and then buy a house when I’m eligible, which is in two years. When I go to another group, individuals tell me that filing for bankruptcy should only be done in extreme cases. Compared to when I filed for bankruptcy, my situation has changed, and I’m now attempting to determine whether to file or accept the settlement offers from each of my cards and simply make payments.

The people who claim that filing for bankruptcy will ruin your life are those who have never had to file for bankruptcy. My parents, aunts, and uncles are bankrupt, as well as myself. Though fortunately I’ve learned from their errors, I’m now teaching my own brother to use bankruptcy because he has also put himself in a difficult situation. If you are eligible, you should use this tool. Your life won’t be ruined by it. It’s entirely up to you if you can afford to avoid it and decide to go the settlement way! Whichever path you choose, your credit will suffer temporarily.

My parents’ experience is all I have to go on, but six months after declaring bankruptcy, they were able to lease a car at a reasonable interest rate and were once more getting approved for credit cards.

Rather than debt settlement options, look into debt management programs. Your credit will suffer because you will still need to deactivate cards, but you won’t be missing payments.

You could not be eligible for Chapter 7 since you earn money. Ultimately, you’ll wind up with chapter 13. To be sure, speak with a bankruptcy attorney. Since debt settlement ruins your credit and exposes you to lawsuits, I would advise against it. Instead, research debt management programs offered by nonprofit organizations. They assist in negotiating reduced interest rates so you can pay off debt more quickly. While paying off the cards, you’ll probably lose access to them, but that will only last temporarily, and you’ll be able to receive new credit afterward.

Although it’s a tough situation to be in, I would view filing for bankruptcy as a one-time “do over” and recognize that you’ll be better prepared for the expenses of having children in the future. This is only acceptable if you make better financial decisions elsewhere. Wishing you luck.

You must file for chapter 7 if your debt is $10,000 or more and you don’t have the means to pay it off in a few years or greatly boost your income. This won’t be paid off in a few years. Furthermore, a debt consolidation would not help you at all and will only increase your expenses.

It would be better to simply declare bankruptcy. With your credit score, no one will rent to you, so I hope your living situation is good. Forget about buying a house that was never going to happen in the first place. Following bankruptcy, you ought to apply for secured credit, which calls for a down payment in cash, and work to raise your credit score once more.