Is 15-20K in debt bad enough to file?

[pdxpride]

Hello,

I've been out of work for some months and have gotten in to some pretty bad debt. Missed many payments, account turned over to collections on many counts. I figured that all of those bad marks will be on there for years and I don't really have a way to pay the debt back. Does 15-20K of debt sound reasonable enough to file bankruptcy over? I tried consolidation once before, but now all the accounts are way over due, and I really couldn't afford consolidation the first time.

TIA

[whatamess]

I think so if its relative to income...for my family that would be a huge amount, yet for someone making 150K it wouldnt be so its all relative. Many attorneys say they have done as little as 5k and as much as anyone can afford to get into debt.
So if you are in over your head in comparison to your income its plenty enough!!!
WAM

[AMISLANDER]

My thoughts

Hello,

I've been out of work for some months and have gotten in to some pretty bad debt. Missed many payments, account turned over to collections on many counts. I figured that all of those bad marks will be on there for years and I don't really have a way to pay the debt back. Does 15-20K of debt sound reasonable enough to file bankruptcy over? I tried consolidation once before, but now all the accounts are way over due, and I really couldn't afford consolidation the first time.

TIA

Are you actively searching for employment? What was your previous income compared to what you can expect to earn should you secure employment right now? This would be relative, IMO, to your 20K of debt......

Personally, if you're going to use the bankruptcy card, make it count!

Do you have anyone helping you out in any fashion? Get three jobs....work!!!

I think we need more information on your total picture.

[SinkingFast]

The amount of debt is relative. Like WAM said, $15K-$20K may be a fortune for one person posting here while it's nothing for others. Many of us filed on MUCH greater levels of debt.

You're obviously unemployed. Were you laid off and cannot find comparable replacement work?? Or were you injured/have an illness and dealing with a possible disability?? Each person's situation is unique. We do need more info to help with your decision process.

Amis made a good point,........... BK is kinda like a one time Antibiotic shot. You definitely want to be sure this is absolutely, positively what you need to do to turn your life around. Once you pull the BK trigger, you can't use this card again for many years.

[whatamess]

I just remembered when I called CCCS before for debt consolidation they told me flat out I could not be on the program for any debts in out of house collection.
They would not even take us!
WAM

[pdxpride]

I just remembered when I called CCCS before for debt consolidation they told me flat out I could not be on the program for any debts in out of house collection.
They would not even take us!
WAM

Well, then I guess that's not an option. As far as my "big picture" I will be working full time again by the end of the month. Next year, when I am able to work the whole year I will earn 40K. I am single, no children and most likely the debt will be at the lower end of 15-20K because student loans don't count.

I really can't afford to be on "payments" the way these guys would like. It screwed me the last time, and I ended up in a worse predicament. The way I see it, I can file BK or try to save cash and make "settlements" with the accounts over the next few years.

With all of my missed payments and closed accounts, BK should make my credit rating better not worse right?

[SamanthaJones]

Shame on any lawyer that would allow a client to file for $5000 debt.

That's all.

[bige1030]

With all of my missed payments and closed accounts, BK should make my credit rating better not worse right?

It does make it a little worse, but not all that much worse. But the biggest benefit of BK is that you no longer have a huge debt load - and you can start rebuilding your credit much, much faster than you could have if you had tried your hardest to pay off all of the bills.

[AMISLANDER]

Well, then I guess that's not an option. As far as my "big picture" I will be working full time again by the end of the month. Next year, when I am able to work the whole year I will earn 40K. I am single, no children and most likely the debt will be at the lower end of 15-20K because student loans don't count.

I really can't afford to be on "payments" the way these guys would like. It screwed me the last time, and I ended up in a worse predicament. The way I see it, I can file BK or try to save cash and make "settlements" with the accounts over the next few years.

With all of my missed payments and closed accounts, BK should make my credit rating better not worse right?

....I'm thinking don't file....if you're at the 15K end....no children, single, I think we need a wee bit more info here....as in do you have rent? car payments?.....at that income, I'd say hold off cause that's somewhere around $2,500/mo.....after taxes???? You could surely drop some G's on your debt.......don't you think?

Or am I missing the point?

[FilingOnMyOwn]

But how much do you think the debt will be once you are able to start paying it?

My largest debt was originally only 12k to a citi card, and after years of no work after 9-11, that 12k turned into 20k after 27% interest plus fees, then got sent to a collection agency so my credit report showed I owed 40k. Thats the kind of stuff you have to be worried about.

15-20k is not a tremendous amount of unsecured debt to pay on if you're going to be making 40k, but if it would turn into 20-25k or more by the time you can start paying it, thats a different story.

[pdxpride]

But how much do you think the debt will be once you are able to start paying it?

That's what I'm worried about. The high interest rates and late/non payment fees are eating me alive. Not sure what the debt will be when I start paying it back. If they could "freeze" my accounts I may be able to get a handle on some of my accounts, but many are already with third parties.

The thing that scares me most is I took out several payday loans and have never paid anything on these. I posted a Q in the Ch. 7 forum about whether these can be discharged? I have no idea where these accounts are, they started off with the crazy interest rates as it was. I have changed my phone number, and only get calls from one of the companies. No one has sent me an updated "bill" with my current amount owed, but it's scary to think about.

I'd say in 2-3 months time I will be in the position to throw 800-1000 at my debt if I don't file. I just want to forward in the most effective way possible.

[FilingOnMyOwn]

Well, I had to file over only 15k because there were no jobs whatsoever in my area. I had to move out of state to find a job just to raise enough money to file. By that time of course, it was too late for repayment to have been possible, with all the creditors pursueing duplicate claims and adding crazy interest and fees.

What you need to do is pull your credit reports, and gather all your bills. Sit down with all of it and mull it over for a few days. The right answer will come to you.