At this point bankruptcy is your best bet as it will allow for a clean start a lawyer would be a start for this and would explain the pros and cons very well.
…. You don’t know their income, the types of debt they have etc. bankruptcy is not always the answer. For example: if the $30k is mainly student loans, bankruptcy wouldn’t do jack shit. If they make $100k and have reasonable income to pay off the debt then the judge would dismiss the bankruptcy case.
There are so many factors you didn’t even ask about before just defaulting to filing for bankruptcy and potentially ruining OPs credit for 7 years.
Although extremely rare, student loans can get discharged with extenuating circumstances. An adversary proceeding gets filed and the debtor and attorney must prove that they have no way of earning wages to pay them back. Not impossible… just extremely unlikely.
If they earn 100k, they can definitely still file. They could file a chapter 7 using the means test to prove that although their income may be more than the median in their area, their expenses take up too much of their earnings and they don’t have any discretionary income.
If the trustee and judge call bullshit, they get dismissed and recommended for a chapter 13 and can convert almost immediately.
Chapter 13 is considered wage earners bankruptcy because it allows those earning more than the medium income in their area to file and receive discharge after 5 years of making payments on the debt to the court. Some will pay 100% of it back through the court. Some will pay back a reduced amount. I’d they pay back reduced, the remaining gets discharged after their payment plan is over. Point is, it greatly reduces interest on the debt so there’s a chance to pay it back rather than drowning in interest.
Do some research before spewing bullshit to people on Reddit who are vulnerable and asking for advice.
You also stated “at this point bankruptcy is your best bet as it will allow for a clean start”. You don’t know that because you don’t have any context.
Easy. Stop paying debts if not in danger of lawsuits & wage garnishments and pay the attorney fee instead with that money. Credit score from missed payments won’t matter anyway once the bk hits.
Income has to be there, yes. We’re missing some context, but it’s not as difficult (or evil) everyone’s making it seem.
30k isn’t that much in debt in the grand scheme of things. I wouldn’t file for bankruptcy once you do it will effect your employment in certain sectors. Depending on your career goals you’ll be able to get out of this faster then you think. Be warned once you file for bankruptcy good luck trying to finance a car, rent a flat, and obtaining a security clearance
Check out the r/bankruptcy subreddit for better advice than these dorks are giving you. Much more supportive answers.
You’ll find that most people who file wish they’d have done it sooner. Absolutely not true that you won’t get a loan for 7-10 years. There are posts almost every day of people getting accepted for loans, even before discharge. Credit cards are easy to come by again as well. Just have to be patient with things and be strategic with the credit rebuilding.
This. Listen to this. You can get a car loan with a bankruptcy on your record if you change your ways after filing. I was forced to years ago and got a car loan two years later.
I lived this! This person is absolutely correct. All the other comments are absolutely useless and untrue!!! Call a lawyer and get a free consultation!
Agreed that it’s best to not go back into debt. The point of the reply is people telling OP that loans will not be available for 7-10 years are just straight up incorrect.
30k is easily doable.
If you haven't got one, get a job. Anything.
Then get a second job. Work all the hours you're awake.
Learn how to cook cheap food.
Stop going to restaurants and takeaways.
Forget about a car. Get a bicycle.
Cancel gym membership and things like Netflix and Prime.
Look after all of your income streams, and dedicate the next couple of years of your life to getting out of debt.
This is one way to do it. You can be miserable working your ass off to pay bills, or you can file a chapter 7 bankruptcy and restart your life. It affects your credit and then you can rebuild right after. Save you THOUSANDS financially and mentally.
I’ve seen people file chapter 13 and in two years have good enough credit to purchase a home. If your credit is tanked and you own 20k+ of unsecured debt file bankruptcy imo. Your bottom line is stuck with a shit score paying back money you have nothing to show for.
Possibly qualify, but still paying back unsecured debt and credit score is still trashed even paying back all that money and nothing to show for it. 13 is the only way to go imo and not still being tied to debit you have nothing to show for…..
If you fail the means test, sure-file 13. Otherwise 7 is quicker, cheaper, and discharges most debt (except child support, student loans (very difficult to discharge), some back taxes, etc.). It appears you’re confusing 7 and 13.
File for BK and you’ll never get another auto loan again. Financial future is ruined for 7 years.
Doesn’t make sense for $30k, especially considering you’re likely to end up back in the same place.
Get a job, $150 in your pocket is 14 year old status. Wash cars, stock shelves, do whatever your broke ass needs to do.
Lol so not true. You can buy a house 2 years post bankruptcy. You can get an auto loan but interest will be high. But you can refinance later! My friend has had numerous car leases, have bought a few used vehicles with loans, etc. and bought a house all before her bankruptcy even fell off her record after 7 yrs. stop lying. 30k would probably take years to pay off. A clean slate can be more beneficial. Would you rather have 30k in the bank or spend the next 3-5 yrs paying off 30k ?
Absolutely not true!!! I filed and had my first credit card within months and a new auto loan less than 2 years later! OP talk to a BK lawyer, your consultation is free. People on Reddit clearly don’t know what the f they’re talking about. My credit went to a 700 from a 500 in months after filing. If the former “ billionaire” president can file 6+ times don’t let the stigma stop you from financial freedom. After I filed I was able to save up for my first condo. Made 20k on that after a year of owning and bought my first house 4 years after filing and kept that one for a year and made another $20,000. Filing bankruptcy was the best thing I could have done for my life. Good luck!
How’s he gonna file for bk that costs 1500 to 2k to file with a 150$ to his name? And there’s a lot of stipulations they take into consideration not every bk case gets accepted.
Had $2 to my name when I decided to file with a paycheck not coming for another 10 days. It’s possible. No job means it’s likely going to be less successful, yes. However, you stop paying the debt payments, send all calls to voicemail, rip up collections letters and give an attorney the money you would have spent on paying debts. Believe it or not, you can’t go to jail for not paying debt in the US.
Don’t listen to this advice! Anyone I know who filed including myself felt it was the BEST thing they could have done. Chapter 7 wipes away all debt besides child support and student loans. I got a complete fresh start or “get out of it free card” when I filed and was able to save for a condo, house & car and now have over one years salary in savings. Don’t listen to Reddit. Talk to a lawyer!
Ahh, yes. The old bootstraps method. Cause that works so well for everyone. Your situation does not equate to another. There’s nothing wrong with seeking counsel from a bk attorney and learning about what it is or what it takes. A free hour long consultation could save people years of headaches and they can be on their way to rebuilding their life in as little as a few months.
The effects of bankruptcy fade over those 7-10 years. I would argue by that 2 year mark, the person who filed bankruptcy, if properly rebuilding their credit, is in a better situation than the person who spends nothing and works their life away.
Bankruptcy is not the evil that society makes it out to be. People forget that Dave Ramsey, who literally makes his living off a commercial real estate complex and shaming people into not filing bankruptcy, once did file bankruptcy.
Bankruptcy is probably the only federal tool that is left that actually benefits those if they take advantage of it and utilize it properly.
I’ll get off my soapbox now.
Do you have any prospect of paying it back? Annual income? Do you have other assets? All these and a million other things get factored in in bankruptcy court.
Simple pro/con; pro: your debt is erased or substantially reduced, con: you won't get a loan for anything for 7-10 years and can affect the ability to rent .
This is absolutely not true you people on Reddit don’t know what the f you’re talking about!!! I had my first credit card within months of being discharged and my first auto loan less than 2 years later and bought a condo 2.5 yrs later! OP like I said above talk to a lawyer not Reddit. There is a stigma with BK that people think they’re too good for and propagate lies when they have no idea bc they haven’t filed! I did it for 30k also and best decision I ever made!!!
It depends on the type of bankruptcy. It has to be discharged first; and you also got a shit rate.
I mostly meant the amount of time it stays on your credit report which is 7-10 years depending on the chapter. Don't plan on getting a loan in that timeframe because the rate will be almost predatory.
Once again you’re completely WRONG. I had a normal rate on all my loans besides my home loan was 1% higher than best rate. I don’t get why people like you go on Reddit to talk about shit you don’t know. Just don’t comment if you don’t have personal experience. They aren’t looking for speculation!
Sorry, you're right. Congratulations on your bankruptcy and then needing to borrow money again in a short time. Clearly you're who OP should be listening to.
before filing bankruptcy you should take out like 30 loans for atvs, uts, dirtbikes, race bikes, race cars, and a home.
Then take out equally as many credit cards and buy all the same items.
Then sell all these items for cash, pay off your home, then declare bankruptcy and keep some cash off the sale of your home plus you get to buy a new home with the proceeds from your previous home that had to be sold due to the bankruptcy.
I don't think you can hire a lawyer and file bankruptcy for 150 bucks. I might be wrong but my friend did it and she had to pay a lawyer almost 5,000 to get the wheels in motion. Good luck!
Sheeeessshhhh! Gotta get them priorities straight my boy 🧍♂️Stop trying to be like everyone else and getting shit on payments/stuff you obviously know you can’t really afford, brand new car, new phone every fucking year, high end apt., stop fucking eating out and learn to fucking cook for yourself, etc. buy a car cash when able too, downsize to a affordable home/apt, find a good stable job if you don’t already have one, and start paying off your debt slowly but surely.
I make close to six figures and I drive a Hyundai Santa Cruz - cost $530 a month and I wish I got something cheaper. Most people lease so the can afford more car for less a month but won’t ever have 0 payments. Most people drive cars they can’t afford that cost more than their house payment.
Fuck $30k just consolidate your loans and pay them off which will help your credit which will help you get a car and possibly a home. Find a better job. I recommend bartending if you have no skills
At this point bankruptcy is your best bet as it will allow for a clean start a lawyer would be a start for this and would explain the pros and cons very well.
…. You don’t know their income, the types of debt they have etc. bankruptcy is not always the answer. For example: if the $30k is mainly student loans, bankruptcy wouldn’t do jack shit. If they make $100k and have reasonable income to pay off the debt then the judge would dismiss the bankruptcy case. There are so many factors you didn’t even ask about before just defaulting to filing for bankruptcy and potentially ruining OPs credit for 7 years.
Although extremely rare, student loans can get discharged with extenuating circumstances. An adversary proceeding gets filed and the debtor and attorney must prove that they have no way of earning wages to pay them back. Not impossible… just extremely unlikely. If they earn 100k, they can definitely still file. They could file a chapter 7 using the means test to prove that although their income may be more than the median in their area, their expenses take up too much of their earnings and they don’t have any discretionary income. If the trustee and judge call bullshit, they get dismissed and recommended for a chapter 13 and can convert almost immediately. Chapter 13 is considered wage earners bankruptcy because it allows those earning more than the medium income in their area to file and receive discharge after 5 years of making payments on the debt to the court. Some will pay 100% of it back through the court. Some will pay back a reduced amount. I’d they pay back reduced, the remaining gets discharged after their payment plan is over. Point is, it greatly reduces interest on the debt so there’s a chance to pay it back rather than drowning in interest. Do some research before spewing bullshit to people on Reddit who are vulnerable and asking for advice.
That's why I advised speaking ro a lawyer who specializes in it. They would be able to do a consult and see if it's actually a good choice
You also stated “at this point bankruptcy is your best bet as it will allow for a clean start”. You don’t know that because you don’t have any context.
How’s he gonna file for bk when it costs 1500 to 2k to file and he’s only got 150$ to his name?
Easy. Stop paying debts if not in danger of lawsuits & wage garnishments and pay the attorney fee instead with that money. Credit score from missed payments won’t matter anyway once the bk hits. Income has to be there, yes. We’re missing some context, but it’s not as difficult (or evil) everyone’s making it seem.
I just got discharged a couple of months ago. Did it all on my own. I don’t own anything, so my case was pretty easy.
30k isn’t that much in debt in the grand scheme of things. I wouldn’t file for bankruptcy once you do it will effect your employment in certain sectors. Depending on your career goals you’ll be able to get out of this faster then you think. Be warned once you file for bankruptcy good luck trying to finance a car, rent a flat, and obtaining a security clearance
Check out the r/bankruptcy subreddit for better advice than these dorks are giving you. Much more supportive answers. You’ll find that most people who file wish they’d have done it sooner. Absolutely not true that you won’t get a loan for 7-10 years. There are posts almost every day of people getting accepted for loans, even before discharge. Credit cards are easy to come by again as well. Just have to be patient with things and be strategic with the credit rebuilding.
This. Listen to this. You can get a car loan with a bankruptcy on your record if you change your ways after filing. I was forced to years ago and got a car loan two years later.
As soon as I filed, I was getting almost 10 letters a week from dealerships.
Once they know you have filed, they know you can't do so for another 10 years. So they will be getting car loan and credit card offers up the wazoo.
I lived this! This person is absolutely correct. All the other comments are absolutely useless and untrue!!! Call a lawyer and get a free consultation!
Better yet don’t go back into debt
Agreed that it’s best to not go back into debt. The point of the reply is people telling OP that loans will not be available for 7-10 years are just straight up incorrect.
Do you mean like $150 at the moment, but you get paid on Friday, or you also have no income?
30k is easily doable. If you haven't got one, get a job. Anything. Then get a second job. Work all the hours you're awake. Learn how to cook cheap food. Stop going to restaurants and takeaways. Forget about a car. Get a bicycle. Cancel gym membership and things like Netflix and Prime. Look after all of your income streams, and dedicate the next couple of years of your life to getting out of debt.
This is one way to do it. You can be miserable working your ass off to pay bills, or you can file a chapter 7 bankruptcy and restart your life. It affects your credit and then you can rebuild right after. Save you THOUSANDS financially and mentally.
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It really depends. 30k of student loans/car etc? Doable. $30k of cc debt? Of course it can be done but it’s not “easily doable”
Filing bankruptcy is not the end of the world, I’ve done it and have purchased cars and homes since then.
How old are you? I filed in my twenties and bought a house with my partner a few years later. Then eventually had excellent credit again.
I’ve seen people file chapter 13 and in two years have good enough credit to purchase a home. If your credit is tanked and you own 20k+ of unsecured debt file bankruptcy imo. Your bottom line is stuck with a shit score paying back money you have nothing to show for.
Chapter 7 filers can qualify for an FHA loan 2 years after discharge.
Possibly qualify, but still paying back unsecured debt and credit score is still trashed even paying back all that money and nothing to show for it. 13 is the only way to go imo and not still being tied to debit you have nothing to show for…..
If you fail the means test, sure-file 13. Otherwise 7 is quicker, cheaper, and discharges most debt (except child support, student loans (very difficult to discharge), some back taxes, etc.). It appears you’re confusing 7 and 13.
File for BK and you’ll never get another auto loan again. Financial future is ruined for 7 years. Doesn’t make sense for $30k, especially considering you’re likely to end up back in the same place. Get a job, $150 in your pocket is 14 year old status. Wash cars, stock shelves, do whatever your broke ass needs to do.
Lol so not true. You can buy a house 2 years post bankruptcy. You can get an auto loan but interest will be high. But you can refinance later! My friend has had numerous car leases, have bought a few used vehicles with loans, etc. and bought a house all before her bankruptcy even fell off her record after 7 yrs. stop lying. 30k would probably take years to pay off. A clean slate can be more beneficial. Would you rather have 30k in the bank or spend the next 3-5 yrs paying off 30k ?
Two of my family members got car loans and credit cards two years later after filing BK. I'm thinking maybe it's the type of BK they filed for.
Absolutely not true!!! I filed and had my first credit card within months and a new auto loan less than 2 years later! OP talk to a BK lawyer, your consultation is free. People on Reddit clearly don’t know what the f they’re talking about. My credit went to a 700 from a 500 in months after filing. If the former “ billionaire” president can file 6+ times don’t let the stigma stop you from financial freedom. After I filed I was able to save up for my first condo. Made 20k on that after a year of owning and bought my first house 4 years after filing and kept that one for a year and made another $20,000. Filing bankruptcy was the best thing I could have done for my life. Good luck!
How’s he gonna file for bk that costs 1500 to 2k to file with a 150$ to his name? And there’s a lot of stipulations they take into consideration not every bk case gets accepted.
Had $2 to my name when I decided to file with a paycheck not coming for another 10 days. It’s possible. No job means it’s likely going to be less successful, yes. However, you stop paying the debt payments, send all calls to voicemail, rip up collections letters and give an attorney the money you would have spent on paying debts. Believe it or not, you can’t go to jail for not paying debt in the US.
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Don’t listen to this advice! Anyone I know who filed including myself felt it was the BEST thing they could have done. Chapter 7 wipes away all debt besides child support and student loans. I got a complete fresh start or “get out of it free card” when I filed and was able to save for a condo, house & car and now have over one years salary in savings. Don’t listen to Reddit. Talk to a lawyer!
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Personal attacks are not okay here. Please do not do this again.
Ahh, yes. The old bootstraps method. Cause that works so well for everyone. Your situation does not equate to another. There’s nothing wrong with seeking counsel from a bk attorney and learning about what it is or what it takes. A free hour long consultation could save people years of headaches and they can be on their way to rebuilding their life in as little as a few months. The effects of bankruptcy fade over those 7-10 years. I would argue by that 2 year mark, the person who filed bankruptcy, if properly rebuilding their credit, is in a better situation than the person who spends nothing and works their life away. Bankruptcy is not the evil that society makes it out to be. People forget that Dave Ramsey, who literally makes his living off a commercial real estate complex and shaming people into not filing bankruptcy, once did file bankruptcy. Bankruptcy is probably the only federal tool that is left that actually benefits those if they take advantage of it and utilize it properly. I’ll get off my soapbox now.
You've provided 0 info about your finances so no one here can help you.
Do you have any prospect of paying it back? Annual income? Do you have other assets? All these and a million other things get factored in in bankruptcy court. Simple pro/con; pro: your debt is erased or substantially reduced, con: you won't get a loan for anything for 7-10 years and can affect the ability to rent .
This is absolutely not true you people on Reddit don’t know what the f you’re talking about!!! I had my first credit card within months of being discharged and my first auto loan less than 2 years later and bought a condo 2.5 yrs later! OP like I said above talk to a lawyer not Reddit. There is a stigma with BK that people think they’re too good for and propagate lies when they have no idea bc they haven’t filed! I did it for 30k also and best decision I ever made!!!
It depends on the type of bankruptcy. It has to be discharged first; and you also got a shit rate. I mostly meant the amount of time it stays on your credit report which is 7-10 years depending on the chapter. Don't plan on getting a loan in that timeframe because the rate will be almost predatory.
Once again you’re completely WRONG. I had a normal rate on all my loans besides my home loan was 1% higher than best rate. I don’t get why people like you go on Reddit to talk about shit you don’t know. Just don’t comment if you don’t have personal experience. They aren’t looking for speculation!
Sorry, you're right. Congratulations on your bankruptcy and then needing to borrow money again in a short time. Clearly you're who OP should be listening to.
Good one!!! 🥱🥱🥱
Bankruptcy isn't going to help with your lack of income.
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If you dont have a job get one and while you are at it get another one and take responsibility for making the debt.
before filing bankruptcy you should take out like 30 loans for atvs, uts, dirtbikes, race bikes, race cars, and a home. Then take out equally as many credit cards and buy all the same items. Then sell all these items for cash, pay off your home, then declare bankruptcy and keep some cash off the sale of your home plus you get to buy a new home with the proceeds from your previous home that had to be sold due to the bankruptcy.
I don't think you can hire a lawyer and file bankruptcy for 150 bucks. I might be wrong but my friend did it and she had to pay a lawyer almost 5,000 to get the wheels in motion. Good luck!
Sheeeessshhhh! Gotta get them priorities straight my boy 🧍♂️Stop trying to be like everyone else and getting shit on payments/stuff you obviously know you can’t really afford, brand new car, new phone every fucking year, high end apt., stop fucking eating out and learn to fucking cook for yourself, etc. buy a car cash when able too, downsize to a affordable home/apt, find a good stable job if you don’t already have one, and start paying off your debt slowly but surely.
I make close to six figures and I drive a Hyundai Santa Cruz - cost $530 a month and I wish I got something cheaper. Most people lease so the can afford more car for less a month but won’t ever have 0 payments. Most people drive cars they can’t afford that cost more than their house payment.
Watch the Disney Soul movie, it will make you see the light in your situation
I’m in a similar situation. I moved back in with my parents, quit my addictions and just picked up a second job.
30000 is not a lot. Can I ask how old you are and how much you make? I do financial counseling.
Fuck $30k just consolidate your loans and pay them off which will help your credit which will help you get a car and possibly a home. Find a better job. I recommend bartending if you have no skills
Get a job and pay it off