I have some debt that its been over 7 years old, most of them were when I was single, been married for 6 years. I just cant continue like this. total debt is 17,000.00
I being sued by a collection agency for 10,000.00, I was trying to get into one of those debt management program, but wife got laid off recently, I am working but Im barely making it. I looking for the option for bankruptcy, my credit is very bad and it s been like that for over 5 or 6 years, would like to know what are the negative and positives sides of filing for bankruptcy specially now with the new law for chapter 7 and 11i think they are called.
If you are barely making it, no debt management program is a good solution for you. If you enrolled you’d probably be unable able to make the payments within six months and then it would have just been money wasted.
While these are old debts, they may fall off your credit report soon, and they may be to old under the statute of limitations to sue you for them. However, a collector can attempt to collect for the rest of your life.
To check on the status of your debts under the statute of limitations, seek legal advice for an attorney licensed in your state.
Just based on what you have shared, bankruptcy should not be a problem for you to pass the means test. Find a local bankruptcy attorney that you like and make an appointment for a free bankruptcy consultation. Then go in and talk about your situation.
The advantage of bankruptcy is that it will close the door on these debts forever. Once that is done you can focus on rebuilding your credit again.
The other plan is if these debts are going to fall off your credit report you could just deal with potential future calls to collect on these debts, not go bankrupt and focus on rebuilding your credit.