debt help: Chapter 7 bankruptcy is it worth it? - Help.com

You would have to provide more information for others to tell you if this is the right thing to do or not.

Chapter 7 bankruptcy can be right under some circumstances; Chapter 13 may be better for others. And than there is also debt consolidation; which can be better than bankruptcy if you can make payments every month.

TeTa_200 wrote:
Well as of right now I own nothing. My car is in my mothers name and I dont even have a working television. No property no house nothing with any kind of paper trail anyway I have a few expensive guitars but my father bought them so I really have nothing they could take from me. I just have a huge stack of bills that I cant pay and a phone that will not stop ringing. Im just at the end of my rope here. I found this bankruptys lawyer online and they contacted me for what they said was a “free” consultation you dont think they are trying to skrew me into giving them any money do you? Cuz I have none if I had money to give them I would just pay my bills with it. If really worried that they are going to try and rope me into something.

First the lawyers are most likely not trying to screw you. But understand you will have to pay them if they work for you on the bankruptcy. And you will have to pay them in advance; they will not give you credit because as soon as the bankruptcy goes through you wouldn’t have to pay them back. And so they want their money upfront.

Don’t pay anymore than around $1000 give or take a couple of hundred. Anything more than that is to much and the lawyers may be taking you for a ride.

Also; you don’t need a lawyer to file bankruptcy; you can do it all on your own if you do some research and find out how. You will still have to pay filing fees but they will be much smaller than getting a lawyer.

Given the little that you have to loose I would suggest doing this with out a lawyer.

How much do you owe? and what is your income?

My first question is why do you have 30 thousand in student loans? yet can’t find a job that pays more than minimum wage?

But that is besides the point. The student loans you will have to pay for regardless. They are protected from bankruptcy as part of the terms of the loan.

However the 4 thousand in credit card bills and 3.5 thousand in medical bills will be whipped out. But as a result your credit will be screwed up for no less than 7 years and in some regards much longer than that.

Where it me I would look for another way to pay the 7.5 thousand. Debt consolidation and renegotiations. 7.5 thousand does not sound like enough to severely limit your future possibilities; you will have trouble getting car’s; homes; and most importantly jobs with a bankruptcy on your record.

Have you considered moving back in with your parents until you get back on your feet?

How about selling the expensive guitars?

Yes, in my opinion it is worth it. Any chance you can get to get out of debt is worth it. By the way, you don’t need to hire an attorney. You can get everything you need to file for bankruptcy on your own without one at - http://www.legalformsbank.biz/bankrup… - and you can learn more there too.

In a chapter 7 you are allowed to keep most of what you own. If you are renting and have no property, you will get to keep your belongings. There are limitations to what is exempt but you should be able to find that on a website. Also remember that market value is basically garage sale price. The trustee doesn’t want to sell your stuff unless they get a lot of money. Also the student loans may be able to be put on forbearance or deferment. Call and ask about that!!! I have done a chapter 7 by myself. It will take time to fill out papers, but you should be able to find a site that will help you. Filling fee may be able to be waived too. It isn’t that scary once you get it done, so don’t be scared before. You will be ok!!! good luck!