I have awful credit and I am being sued I am thinking about filing for bankrupcy because I can't afford to pay anything I made a big mistake of co signing for some one and now I am being sued....
Can I file bankrupcy after the lawsuit is done or can I file now and include that lawsuit.?
rob602pa
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I think you have to wait to see how much the final amount is. I probably would if I really couldn't afford to (assuming this exceeds at least $10,000. All credit you obtain will cost you more for at least four years. You can't file again for seven so don't take all the credit offers you get right after filing, ony what you can afford (take a little to rebuild your score) or you will probably be sued again. If you plan on starting a business or anything, you need take that into account too.
If the other bad credit you have is more than a couple years old, it doesn't really affect you anyway. You amy just need to rebuild by opening a couple secured or expensive cards and pay on time (again, it depends on the amount of the lawsuit).
Lots of jobs pull credit, make sure you have a good excuse if you need to explain to someone so you are not unprepared. and never co-sign again!!!!!!!
Good luck
Anonymous
Get a lawyer and get his advice before the lawsuit is settled. Usually with bankrupcy , many lawyers offer a free consult for the first visit. Anyone here does not know your own personal situation.
Chapter 7 is a total bankrupcy, where Chapter 13 is a payback bankrupcy for minimum of 30mos.Lawyer fees are cheaper for Chapter 7 than for Chapter 13, because Chapter 7 has no ongoing issues that come up after it is done (usually).
Recent law changes have made it harder to file Chapter 7. If you have a home or condo or real estate with a fair sized amount of equity (I think it is $5000), then you will probably have to do the payback bankrupcy or lose your home. You are also only allowed to have a car that is worth only so much (ie I think it is $2000). If your home equity is low, sometimes you can still file chapter 7 and reaffirm the mortgage on the house.
I am not a lawyer, but have bankrupcy DOES affect your credit and it DOES stay on your credit record for about 7 years(?) and employers DO sometimes snoop into your credit for certain jobs...I think that stinks..It is none of their business....Sometimes bankrupcy is the easiest or only way out...
Yes there are ways you maybe can negotiate bills, but probably only with a company that can negotiate on ALL your bills and organize payments for you...your creditors probably will not trust you to do these payments to them yourself. The problem is WHO are these companies doing the negociating for you?? Can you trust them with your finances and personal information?? I have not heard of any one or two that stands out reputation wise from the rest...maybe the Better Business Bureau would know.
Fun N Sun
Filing bankruptcy is not good. But if you do file you have to include all debt you have at the time of filing. Even if you dont have balances on some of your cards they can still be closed out if the find out you filed bankruptcy. It stays on your credit report for 7-10 years. You can include the lawsuit before or after its filed, it doesnt matter, you just have to get the creditors information to include in your paperwork.
Anonymous
DO NOT FILE FOR BANKRUPTCY!!
Tell the claimant that after the lawsuit has been resolved, you will be forced to file bankruptcy. Explain to them that they will incurr expenses to sue you and they will be out the cost plus the debt.
Ask them to reduce the debt and work out a payment plan so that they will be able to collect a % of the debt rather than nothing.
The write off will still affect your credit report...but not to the extent that a bankruptcy would.
If they agree to your terms, please make sure you pay on time and in full.
Jamers
File BANKRUPTCY now, make sure to include everything.
I filed bankruptcy, I am so glad I did, it stopped collections, judgements, and the phone calls. It took all my debt away.
It does take like 7-10 years to come off your credit though.