Bankruptcy?

[b91hd7fjk]

I know this is a somewhat depressing topic but my boyfriend has so much debt right now I am desperate to help him. I unfortunately do not have enough of my own funds to take care of it so I want him to look into filing for bankruptcy.

I am just looking for some advice on how to start the process or if anyone has been there and can make some suggestions for us. This is a really hard time for us and I just need some help if you can offer it. Thanks all!

-Staci

[Phyllis28]

You might consider contacting a NON-PROFIT credit counseling service. They maybe able to work with your boyfriend's creditors and avoid bankruptcy. If not, the service will be able to give guidence on the how to start the bankruptcy process.

[pixiegirl]

Be careful with the credit counseling agencies... there are a lot of "funky" ones out there. But do some research on it there are some that are recommended and have good reputations.

I've never had any credit problems but I know my ex husband has. They recently change the bankruptcy laws and have made it much more difficult to declare it. I believe part of the drill is you first must try and credit counseling agency.

And bankruptcy does follow you for quite a while.. I think its only supposed to remain on your credit report for 7 years but it some how sort of turns up after that. I had a friend that 10 years after a bankruptcy filing couldn't get a mortgage due to it. For sure it shouldn't have been in her record but it was and the damage was done, she couldn't get the loan.

The smartest thing to try first is a good counseling agency, they are supposed to go to your creditors and negotiate settlements for you, they usually take off much of the penalties and interest and often will settle for a less amount on the principal then you originally owed. The point here is "negotiate" don't accept the first offer you get ask your counselor if they can go back and get something better for you. That its either paying down something or declaring bankruptcy and the creditor perhaps getting nothing. Also be sure to get letters from the creditors and the agency saying you are have all agreed to pay such and such amount and when it is paid it will settle the entire debt in full and that at that time they will go to the credit reporting agencies and list the debt as paid.

There is a ton of information online about what you need to do to protect yourself. But doing it this way, if you can swing it is far better then a bankruptcy.

Good luck, Susan

[debmidge]

sometimes you can call your creditors and they'll work with you to reduce the debt and set up a payment plan, but you can't use them to make more debt.

[SchnauzerMom]

I've been through a bankruptcy in 1999. Our credit is doing good now but it was rough going. If at all possible try to avoid a bankruptcy. Try to talk to your creditors and work something out. As far as the bankruptcy is concerned we just went to a lawyer and they worked it out.

[ravenwoodglass]

I know this is a somewhat depressing topic but my boyfriend has so much debt right now I am desperate to help him. I unfortunately do not have enough of my own funds to take care of it so I want him to look into filing for bankruptcy.

I am just looking for some advice on how to start the process or if anyone has been there and can make some suggestions for us. This is a really hard time for us and I just need some help if you can offer it. Thanks all!

First off I would let him take care of bailing himself out, give him guidance but I would keep my bankbook closed. Feed him while he pays off stuff, help him stick to his budget and help out in small ways but if you bail him out he will learn nothing from the experience and it will likely repeat. You have recieved some good advice already, the best IMHO is to have him talk to a reputable credit counselor or simply cut up those cards, the first thing the counselor will do, and then have him call and set up a payment plan with his creditors. Many will do things to work with him. If some of the bills are medical in nature have him talk to the hospital or doctor, they may forgive them or allow him to stall payments for a bit if the bills are not already in collection.

If he has a late model car that should be the first thing to go, sell it and use the money to pay off something else and to buy a used car or downgrade for a older model at the dealer to reduce the amount he has going out for car payments and insurance. Does he have a lot of 'junk' laying around, games or such that may be sold on Ebay? He can recover some of the lost money that way also. Another option that my DH used when we first married was he found a weekend delivery job and all cash from those two days went to pay down debt. He was able to leave it after about 6 months when we were on more solid footing.

Good luck it is great that he has you willing to help him, but do make sure that he digs himself out of this, with your moral support over the rough spots and the boring weekend nights at home saving money.