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Contributor
Not sure if I go for it or not. I am 31 with a 501 fico score. Multiple repositions on my report. Currently without a car. After going through my divorce the financial walls around me literally collapsed. I was living way beyond my means and now feel like bankruptcy is the only option that will help me get my life back. Wondering if there is anything else I should look at before taking that plunge.

5 REPLIES

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Hey there, 2nd place E!

 

Thank you for posting. I know what a struggle this is, from personal experience it can be a hard choice to make. I do you for making the choice to get out of debt and get yourself established once again. There are different types of bankruptcy based on your situation, so you do need to make sure you speak with someone who can provide you the accurate information before jumping right into it. There is also helpful information on the USAA site.

 

I would recommend speaking with one of our financial experts. You can give them a call at 1-800-771-9960, they are there to help answer your questions and perhaps give you some alternatives.

 

Whatever decision you make, I wish you the best. please keep us posted on how everything is going, we hope to see more of you here in the community.

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Been there, done that.  Some folks think bankruptcy erases everything so be sure you look into exactly what kind of bankruptcy you want AND what qualifies.  Past due taxes, child support and alimony can't be declared (on ANY type bankruptcy) and will live on.  However, credit cards and unsecured loans can generally be wiped out.  If this is the route you need to take, to get your credit back as fast as possible, do 2 things.  Go to a GOOD "buy here pay here" car lot.  Some will charge you an arm and both legs but some are fair given your credit record.  A loan paid on time will build credit.  Second, go to a store where you can get a Mastercard or Visa pre-paid credit card.  Since they only let you buy with how much you have on deposit, you can't go into debt with it but it will show you handling a credit card.  A good pre-paid card should be under $10/mo in maintenance fees.  I think one at my local Walmart is $3/mo.  But check the small print!  Good luck.

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Thank you for sharing your experience in the member community, Phantom Cobra! :-)

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Hey,

Just an FYI past taxes are able to be placed in a bankruptcy as long as they are more than 3 years old. We just added my husband's in our march 2015 bankruptcy and they were also discharged July 2015.  

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If you go down this road:
student loans aren't dischargeable under bankruptcy. Once you go through it you cannot declare bankruptcy again for, I believe, 7 years.

The vultures who offer you credit during this time know this. Don't be surprised if after a time you start getting offers. They will be with terrible terms but they will be offers of credit. Do NOT fool yourself into thinking you can handle it!!

Your new motto will be if you can't afford it you don't get it. Period. You have a budget and you stick by it.

Get someone good to go over your options. If it is the right thing for you to do don't feel guilty. Corporations do it all the time, they restructure and move on but they will tell you it is a moral obligation.

And yes it is - but once you have really sat down and figured it is the right thing to do you need to make sure you never get in that position again.

Hope it goes well for you.