Are you up to your eyeballs in debt and do not know what to do? If so, then you can rest assured that you are not alone. I have been there myself. In fact, I was there just two years ago. My wife and I were stressed out to the max. Our income had dwindled tremendously. We had lost multiple jobs because the companies that we worked for had downsized.
We did not have any money in our savings, and we had a lot of debt. We were able to pay some of our bills but not all of them. Not only was my wife and I stressed about money, but we have a daughter. I managed to keep up with my car payments and mortgage payments so that my family would not be without a home or car.
I knew that I would eventually have to pay these debts back. I weighed all of my options. I looked into credit counseling, debt negotiation and …show more content…
I am happy that I made that decision.
What Should I Do?
Everyone's situation is different. I cannot tell you exactly what you need to be doing because I do not know your situation. However, I can tell you about the options that you have.
Chapter 7 Bankruptcy
You have to pass a means test in order to qualify for Chapter 7. You will be able to wipe out most of your debts, including credit card debts. Even though I was able to keep my property, you may lose your possessions. Your credit score will suffer.
Chapter 13 Bankruptcy
You may file for Chapter 13 if you do not pass the means test. Chapter 13 allows you to make payments on your debts until they are paid off, which typically takes three to five years. Your credit rating will decrease drastically.
Debt Negotiation/Debt Reduction
You can hire a professional, or you can take care of it yourself. You can negotiate with your creditors to get a lower payment. I was able to get a creditor to accept 15 percent of my payment, but many will not go that low. In some cases, your account is settled after you make one or two payments on your
We did not have any money in our savings, and we had a lot of debt. We were able to pay some of our bills but not all of them. Not only was my wife and I stressed about money, but we have a daughter. I managed to keep up with my car payments and mortgage payments so that my family would not be without a home or car.
I knew that I would eventually have to pay these debts back. I weighed all of my options. I looked into credit counseling, debt negotiation and …show more content…
I am happy that I made that decision.
What Should I Do?
Everyone's situation is different. I cannot tell you exactly what you need to be doing because I do not know your situation. However, I can tell you about the options that you have.
Chapter 7 Bankruptcy
You have to pass a means test in order to qualify for Chapter 7. You will be able to wipe out most of your debts, including credit card debts. Even though I was able to keep my property, you may lose your possessions. Your credit score will suffer.
Chapter 13 Bankruptcy
You may file for Chapter 13 if you do not pass the means test. Chapter 13 allows you to make payments on your debts until they are paid off, which typically takes three to five years. Your credit rating will decrease drastically.
Debt Negotiation/Debt Reduction
You can hire a professional, or you can take care of it yourself. You can negotiate with your creditors to get a lower payment. I was able to get a creditor to accept 15 percent of my payment, but many will not go that low. In some cases, your account is settled after you make one or two payments on your