Question: ok, here’s my question… I hope someone can help. I’ve gotten myself into a little problem with my credit cards. I have about 10,000 in cc debt and want to get rid of it as quick as possible. Am I better off to just make as big a payment as possible and pay them off as quick as I can, or should I just file bankruptcy and be done with the whole thing. How long does it take after a bankruptcy to be able to have a good credit rating again. My credit is exceptional right now, but the last few months have been hard… been a little short money wise. I put about $7,000 on the cards in the last 4 months, before then I was handling them well. Money should be looking up again real soon, but I’m afraid I dug too big of a hole.
Answer: Try not to declare bankruptcy, that equals 10 years of misery. Call your debtors, explain your situation and they should help you. May it seem more dire than it really is. The would rather help than never see their money again. Also, check into debt consolidation. In college, I used myvesta.org and I think they have a program for people in your situation. But that is only if the creditors won’t work with you themselves. Looking for such advice on Usenet isn’t a very good idea. If you are certain that your financial condition will improve soon, dealing with your creditors might well be the best way to go. Bankruptcy should be viewed in a “last resort” kind of way (which does not imply that dire financial situations cannot be forseen well in advance and bankruptcy used to stave them off). If you are in danger of losing assets before your financial condition improves, bankruptcy can be a lifesaver.
How many dependents do you have? How badly will they suffer if your assets are taken by creditors? Can you lower your standard of living (i.e., move to a cheaper place, wear less-expensive clothes, drive a smaller car, etc.) and still maintain your professional life? These are just a couple of the many questions you should ask yourself before you make any decision. If you are even considering bankruptcy, NOW is the time to start seeking real help. There are consumer-oriented books in the library to teach you about bankruptcy. Go there, look into them. The best are printed by the Nolo Press
However, if you *do* decide to file you should do it soon, before the pending bankruptcy legislation in Congress passes. When that happens, all bets are off because the rules will then competely change, and any advice you receive right now (including those books in the library) will be rendered utterly meaningless.
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