Karma asked:
I am wondering if they would be better going bankrupt but I have no idea what the consequences are for this…I always just work harder & do more things & so I don’t know what they are going through but don’t want to tell them to do things the way I do them….they actually might not be able to work enough & I am afraid one of my friends is going to get sick from pushing so much. So I would like to know what is best….she has a lot of credit card dept & the companies have made it very hard for to pay back by raising her rates when she has done nothing…..anyway, she has a mortgage & equity loan & everything was good until she ended up with a large amount of hospital bills…So if she goes bankrupt & focuses on just paying back her home & equity loan what would be the consequences & would she still owe on the large credit card debts? ..what if she sells her house in a few years & has done well by then will she have to go back & pay off the credit cards or are they just wiped clean?
Glenn
I am wondering if they would be better going bankrupt but I have no idea what the consequences are for this…I always just work harder & do more things & so I don’t know what they are going through but don’t want to tell them to do things the way I do them….they actually might not be able to work enough & I am afraid one of my friends is going to get sick from pushing so much. So I would like to know what is best….she has a lot of credit card dept & the companies have made it very hard for to pay back by raising her rates when she has done nothing…..anyway, she has a mortgage & equity loan & everything was good until she ended up with a large amount of hospital bills…So if she goes bankrupt & focuses on just paying back her home & equity loan what would be the consequences & would she still owe on the large credit card debts? ..what if she sells her house in a few years & has done well by then will she have to go back & pay off the credit cards or are they just wiped clean?
Glenn
Eleanor
After going bankrupt, it is hard, if not impossible to get a loan for a while. Then when you can it will be real high interest. But if you owe a bunch on credit cards, and can only make the minimum payments, which doesn’t get you anywhere. You might be better off to do it. As far as the house, if you get any large lump sum payments within 6 months of going bankrupt, you have to pay quite a bit of it to the court. So I wouldn’t sell your house for a while.
Actually, the initial visit with a bankruptcy lawyer is free. They will explain it better, and give honest advice.
What we did was … my wife owed a bunch on her cards, and medical. But I didn’t. So we just filed on her, and it didn’t affect me. So I was still able to get car loans and stuff.
Lewis
here are some credit card debt answer: