Flyerfan asked:
is it a good idea to declair bankruptcy for about $24,000, and will it be any harder to get a loan or a mortgage after?
DONALD
is it a good idea to declair bankruptcy for about $24,000, and will it be any harder to get a loan or a mortgage after?
DONALD
BRENT
for two years the only loans available will carry extremely high rates if available at all. After two years you will still pay much higher rates.
for 24,000 it is better to work with the creditors and work out a payment plan(s). You’ll spend far more than 24,000 in high rates and costs over the next several years if you declare bankruptcy.
Comment by PersonalFreedom — April 10, 2009 @ 5:56 pm
WILLIAMS
If you can avoid declaring bankruptcy, then I would avoid it. And for $24,000? What? Yes, it would be harder to get loans for anything after that point. Can you get a line of credit or use debt consolidation as an alternative?
Comment by connemara — April 11, 2009 @ 6:26 pm
ROBERT
Unless you had a medical disaster, bankruptcy is going to hang you credit for a good 7 years, making car and home loans harder to get and more expensive IF you get them; and surprise, under the new bankruptcy lay, you may still have to pay a lot of the 24 k anyway.
Comment by wizjp — April 12, 2009 @ 2:08 am
ANTON
Until the bankruptcy is discharged, credit is in the pits. After that, it’s remarkably easy to obtain financing, albeit at much higher interest rates than you’d pay for an A+ credit score. The credit supply business could be tightening after the recent sub-prime shenanigans, so who can tell what the story will be in 2+ years? 7 years after discharge, a bankruptcy is removed from the credit record.
Comment by Ian S — April 13, 2009 @ 12:36 am
ELBERT
It is generally harder to get credit after a bankruptcy, and in fact, it’s harder to even declare consumer bankruptcy now, after Congress tightened the rules a few years ago. I’d do some serious checking before filing – you need to be prepared to deal with the consequences for about 5 years, at least.
Comment by bugbeacon2 — April 14, 2009 @ 4:10 am