Everything I own that is of any value like my car and tv and computer and shit is all purchased with cash. I rent right now, and with my situation, age and short future I won't be purchasing a home for a long while. Over the last few years I racked up like $6000 - $7000 in debt, and wasn't able to pay it off for certain reasons of my own.

They hunted me down and tried to collect for a while, and I avoided (a lot of you have been there), and I now it's kinda serious. Apparently the juice was running the whole time, and I owe appx $10,000 to $12,000. I just started back in school and am using loans for the time being. I have SOME cash in the bank... until Jan then I get a little more but some of it is going to school and living expenses. I do pretty ok still with things on teh side, but my taxable income is like $500 a month. Last years taxable income for the year was $5000. Taxable .

I never had much credit and the little I did is messed up now. I am thinking of just starting a clean slate and filing. Anyone have any experience with this before? What do you all think?

 

it might seem like a "clean slate" to do it... but that "clean slate" wont come to you until the next 10yrs. not worth it.

 

Check the new laws. Bankruptcy isn't what it used to be. That stuff stays with you for 10 yrs now and some creditors can still come after you.

 

In Cali it will be a sore spot on your credit report for 11 years. Landlords don't rent to people with it on their credit report.

 

I read that it's 10 years after... but I am 23 now. JUST went back to school so the next 4 years are pretty much booked. After that i'll be working and paying off loans, and I read that some creditors, while you'll get a crap rate, are almost more willing to give you limited credit just for the fact that you have no other debts after the discharge goes through. (I say some because obviously the creditors who you fucked won't help you anymore )

I talked to a former co worker who went through this a few years ago, and he just financed a new truck, has a credit card and his current credit situation is basically like it was back in college, not much but good enough.

 

what's $10 or $12k? get hooked up with a consumer credit organization that will work with the creditors. they usually can lower the interest rates and often write-off a lot of the interest already accrued. no point in completely fucking your credit for such a little amount of money.

 

Sometimes that's worse than bankruptcy. What would hurt him the most is the part where it reads that the debts were settled for less than owed. I had a couple of debts on my report that I settled, however I got in writing that they would mark them paid-in-full, and report THAT info to the 3 major Creditor reporting agencies.

 

Either way I am fucked. I am looking at it now as

1. Don't pay and be fucked for 10 years credit wise but still live...

2. Pay and be REALLY fucked for the next 6.

 

seriously, i wouldn't do it. do anything else possible. get with a debt consolidator or something. it should be an absolute last resort.

 

debt consolidation would be the first step. if you do the monthly payment then bankrupcy is always possible.