I recently had a rv fire and insurance didnt pay off about 7000 owed on rv and I carry about 20,000 in credit card debit. Is bankruptcy a good option for me. I'm making payments but struggle to only make minimum payments not getting ahead.
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Chapter 7
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Bankruptcy can be a good option if you have no way to pay your creditors and you can no longer meet the payment obligations. You can also use it to discharge the $7,000 loss from the RV fire. But, it's not always that simple. Bankruptcy is the nuclear option and it will make credit complex for 1-2 years post discharge (true story!). After a year form bankruptcy, things improve but after two years, you could be in the high 600s or even very low 700s depending on your rebuild strategy.
Your best bet is to seek out and obtain 3-5 free bankruptcy consultations.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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If you are eligible to file Chapter 7, and if you do not own anything above your state's exemptions, it is really a no-brainer. If you stand to lose significant property, such as funds in a bank account, vehicles, or real estate due to being above your state's exemptions, then it becomes a more difficult decision. For most people--including myself when I filed--the ONLY regret is not doing it sooner.
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