Is it worth to file a bankruptcy for credit card $40,000 debt with a annual income only $20,000 a ye

what is new bankruptcy law? I heard that if u have income, that you can not file bankrup now????

Is it worth to file a bankruptcy for credit card $40,000 debt with a annual income only $20,000 a year?

Should you file? Lets do some simple math....

If you could somehow pay 10% of your income toward your debt, that works out to about $166 a month. It will only take you 20 years to pay off $40,000 (assuming those nice credit card folks freeze the interest and late fees).

Of course you should file! Read the link below. It describes the changes to the bankruptcy law and what you can expect to happen. Then consult an attorney.

If you have a certain level of income, you can not file for chapter 7. You may qualify for that, but it may not be advisable if you own a home or a lot of property (I%26#039;m betting you don%26#039;t).

If you go chapter 13, you are expected to take all of your %26quot;disposable income%26quot; and put it toward your debts. They will use a formula to calculate your living expenses, and everything over that you must turn over to a trustee. It%26#039;s not going to be easy. You will have to go on a very strict budget. Forget dining out and entertainment completely. Cancel the cable tv. Pack your lunches and forget about that morning Starbucks. And it will be like that for 3-5 years.

Over 1/2 of the people who are placed into Chapter 13 get dismissed because they simply can not live on the tight budget. But you don%26#039;t have a choice. Your budget is already destroyed, creditors are lining up to sue you, and you don%26#039;t have a hope of getting out of debt for 20 years.

Read the file, then talk to a bankruptcy attorney.

Is it worth to file a bankruptcy for credit card $40,000 debt with a annual income only $20,000 a year?

I filed bankruptcy on only about $15000 worth of debt, and that was because my income was only about $9000. I%26#039;m a student.

Anyways, I filed before the new laws went into affect. I know the new laws make it extremely tough to file, so you need to see a lawyer who can answer your questions and help you file.

I had to see a lawyer when I filed because in order to file for bankruptcy you need to file out a 20 page form, it could be longer with the new laws now.

As for whether or not you should file, if you are unable to pay your debt, accuring late fines, creditors are calling and offering you payment plans, and you see no end in sight, consider filing because your credit is ruined anyways. However, if you think you can make payments on time, and pay more by budgeting a little more, don%26#039;t file. Your credit will be ruined for 7-10 years, and it will be hard to get any kind of loan without paying 15-20% interest.

Good Luck, you%26#039;re going to need it.

Is it worth to file a bankruptcy for credit card $40,000 debt with a annual income only $20,000 a year?

Depending on the laws in your area but in mine thats bull. You don%26#039;t have a snowballs chance in hell so yes you should file right away! Of course find out all the pros and cons before you sign anything, one is you%26#039;ll have no credit for 7 yrs and be considered high risk so be prepared to live on what income you have now plus you will be charged a monthly fee for the bankrupcy.

Is it worth to file a bankruptcy for credit card $40,000 debt with a annual income only $20,000 a year?

What the hell were you thinking?

You have a loan at 22% or so interest that is two times your annual salary?

You cannot possibly be up to date on that. Yeah, consult a bankruptcy lawyer. Unless you have a bunch of other assets friend, you are indeed bankrupt.

You cannot get out from under it all, but you can stop some of the interest and late fees, and over credit limits, and I assume your are being nailed with all of those.

Is it worth to file a bankruptcy for credit card $40,000 debt with a annual income only $20,000 a year?

Only you know if you can make the payments on your monthly outgoing bills, however if you do feel you need to file bankruptcy make sure you talk to an attorney about your states laws regarding doing so...It used to be known as the seven year mistake but people can overcome bankruptcy much faster these days, usually in an estimated 2 to 3 years.

Is it worth to file a bankruptcy for credit card $40,000 debt with a annual income only $20,000 a year?

I don%26#039;t think you can file bankruptcy on credit card debt anymore. They changed the law because people would run up thousands of dollars in cc debt and file bankruptcy so they don%26#039;t have to pay it off. That%26#039;s why interest rates are so high now.

If you still have good credit, you can call the credit card company and ask them nicely if they can reduce the interest. I did and went from 14.9 to 9.5 percent. They did this on all three of my cards.