Filing for Bankruptcy?

**leighdu** · March 23rd, 2008, 05:52 PM

How much debt should someone be in before considering filing for bankruptcy? Also, is it better to go with Chapter 11 or Chapter 13 ? My cousin is seriously in need of help when it comes to his bills. He wants to keep his car which he is now 2 months past due on has other debts as well.

**jnjsarauer** · March 23rd, 2008, 06:40 PM

It's not so much a matter of debt as it is the debt to income ratio and your ability to repay. I'd get all the information together and see a bankruptcy attorney for a consult to get some guidance.

**sophie** · March 24th, 2008, 12:12 PM

I think your cousin should explore anything else except for filing for bankruptcy that is the worst possible thing you cab do to yourself. Has he explored all other resources and options?

**hjm331** · March 25th, 2008, 11:35 AM

He should either work overtime or get a second job. That's the best thing can do. How much is the monthly car payment? How much is his debt?

**dreamr802** · April 16th, 2008, 09:44 AM

I definitely wouldn't file for a bankruptcy. It will stay on your credit report for 10 years. Has he exhausted all of his options? He should definitely see a lawyer to see what his options are.

**hjm331** · April 16th, 2008, 12:06 PM

Yes, it will haunt him on his credit report for 10 years. I'd find another method to pay down or settle with the lenders. Anything is better than filing for BK.

**sanjay** · April 17th, 2008, 07:33 AM

hi there
I dont know much but in my opinion, the amount of debt required is not the same for all because it depends on the income and assets of the person.

**hjm331** · April 17th, 2008, 12:52 PM

If someone owns a house, they might have the right to take it into custody.

Don't worry Sanjay, you're right. Don't second guess your knowledge.

**tstreet436** · May 3rd, 2008, 10:01 AM

The last thing he wants to do is file bankruptcy, unless one of his creditors threatens to garnish his wages or the sheriff shows up at his door with a subpoena. He can always look into debt consolidation. Or, he can sit down and look at all his bills and how much he pays on each. Then he should list them in order of importance including due dates and compare that to how much he makes monthly remembering to include his necessary expenses such as gas, groceries, ect. When he narrows it down, he can pay what he can and worry about the rest of it as he gets things paid off or increases his income.

**Rockin35** · May 3rd, 2008, 06:29 PM

I would say Filing Chapter 13 depending on his State IS NOT the worst thing. Filing chapter 13 in Texas seems to do less damage than other states. Even in TN, I have 3 friends that filed chapter 13 and one that did chapter7. I know for sure my friend had about 127K in debt with her house. She put the credit cards under Chapter13 so they didnt get anything out of it, her house is under agreement with her financing bank and the car payments go through the courts but are roughly 150 dollars less than what she was paying. She filed bankruptcy in 2005 and already has a credit card to begin rebuilding.

I owed about $25K, which I've already paid off but I thought about it long and hard. If you can get a 2nd job, tell your friend to do so, if they cant for health reasons or other reasons, they may consider a Debt Counseling Program.

I hope this helps. Rockin35

**yendor** · August 30th, 2008, 05:14 PM

Greetings all. I am wondering if any of you have filed BK, any chapter, and included these National Bank Institutions; Chase, Citi, BofA., or Any of their affiliates cards. And later received, unsecured, line of credit, Visa/Master credit card, from these Banks?

If so,
1: From which Bank?
2: How long after your bankruptcy?
3: Was your Bankruptcy still reporting on the Bureaus when you were approved?

**yoyo11** · August 30th, 2008, 07:24 PM

I've filed BK in 03...did not have any credit cards to file on the BK but I know for sure and it's a fact Bofa is not BK friendly....you got to wait til the BK fall off. Don't waste your inquiry...

**hjm331** · August 30th, 2008, 10:49 PM

No, BOA is not BK friendly at all. However, you should try applying for their secured card and have it converted to a rewards card after a year of maintaining the account in good standing.

**Meya** · August 31st, 2008, 02:11 PM

Hey hjm, i heard YoYo11 mention that bofa secured cards does not reprot to the 3 cb's, is that correct? I thought they did report, just does not report as secured. Correct me if I am wrong yoyo!

**yoyo11** · August 31st, 2008, 04:26 PM

Originally Posted by Meya

Hey hjm, i heard YoYo11 mention that bofa secured cards does not reprot to the 3 cb's, is that correct? I thought they did report, just does not report as secured. Correct me if I am wrong yoyo!

Oh Meya,..yes they do report to the cb's but report the card as a secured cc. Hmmm....