NoDebt w/ Bad Credit or Debt w/ Good Credit
24-Jul-2006, 04:20 PM
#1
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NoDebt w/ Bad Credit or Debt w/ Good Credit
This is for a boy of mine:
This is how the situation can be, no detours, and only these 2 options.
Option A: Good Credit w/ debt >45K
Option B: Bad Credit w/ debt <2K
My boy is debating bankruptcy.
You guys have any comments?
This is how the situation can be, no detours, and only these 2 options.
Option A: Good Credit w/ debt >45K
Option B: Bad Credit w/ debt <2K
My boy is debating bankruptcy.
You guys have any comments?
24-Jul-2006, 04:22 PM
#2
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Join Date: Dec 2004
Location: Scarbaria
Posts: 11,834
Re: NoDebt w/ Bad Credit or Debt w/ Good Credit
Originally posted by jeev155
This is for a boy of mine:
This is how the situation can be, no detours, and only these 2 options.
Option A: Good Credit w/ debt >45K
Option B: Bad Credit w/ debt <2K
My boy is debating bankruptcy.
You guys have any comments?
This is for a boy of mine:
This is how the situation can be, no detours, and only these 2 options.
Option A: Good Credit w/ debt >45K
Option B: Bad Credit w/ debt <2K
My boy is debating bankruptcy.
You guys have any comments?
24-Jul-2006, 04:30 PM
#4
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Join Date: Aug 2002
Location: Mississauga
Posts: 13,184
um...
how about no credit for 7 yrs.. with 2 grand of debt
vs bad credit and 45K debt... i really doubt he has good credit and that much debt if he's considering bankrupcy...
just remember no credit means no credit cards, mortgages, overdraft, etc... nada... just paychecks, and then remember you have to start re-establishing your credit again once you're done your 7 yrs..
personally i'd stay away from bankruptcy if at all possible...
(that means option A just so you know...)
unless he really can't make the payments... we need to have some more info about the situation before giving slightly more relevant info...
how about no credit for 7 yrs.. with 2 grand of debt
vs bad credit and 45K debt... i really doubt he has good credit and that much debt if he's considering bankrupcy...
just remember no credit means no credit cards, mortgages, overdraft, etc... nada... just paychecks, and then remember you have to start re-establishing your credit again once you're done your 7 yrs..
personally i'd stay away from bankruptcy if at all possible...
(that means option A just so you know...)
unless he really can't make the payments... we need to have some more info about the situation before giving slightly more relevant info...
24-Jul-2006, 04:32 PM
#6
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Join Date: Jun 2005
Location: Toronto
Posts: 164
If you declare bankruptcy it say with you for the next 7 years. You can forget about ever leasing a car, financing a car, mortgaging a house, stuff like that.
My opinion, take the debt, start working 60 hour+ weeks, cut your expenses, sell your car and downsize, in the end you should be able to pull through it.
I know it sounds bad, but you dont really have a choice.
My opinion, take the debt, start working 60 hour+ weeks, cut your expenses, sell your car and downsize, in the end you should be able to pull through it.
I know it sounds bad, but you dont really have a choice.
24-Jul-2006, 04:36 PM
#7
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Posts: 23,881
everybody has misconceptions with bankruptcy and propsals...you can have credit card and you can get loans, mortages etc before you 7 years is up...and in many cases this option leaves you with way more money than u would have drowning in debt...and its possible to have good credit and have debt out your yang
24-Jul-2006, 04:36 PM
#8
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Debt is non-mortage for him. His wife has good credit so she can co-sign for anything he needs.
I know he can't handle the payments. I was gonna help him out, but I don't have 45 K lying around.
I think he should do OPTION B: it'll teach him a lesson, u know?
plus 45K gets written off. The way i see it, if he doesn' t need to use his credit, its like he's saved 45K right?
I know he can't handle the payments. I was gonna help him out, but I don't have 45 K lying around.
I think he should do OPTION B: it'll teach him a lesson, u know?
plus 45K gets written off. The way i see it, if he doesn' t need to use his credit, its like he's saved 45K right?
24-Jul-2006, 04:39 PM
#9
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Location: Etobicoke
Posts: 621
Definately option A. I'm not a lawyer but can he be sure that the bank isn't going to go after his wife for the money. Tell him to go talk to a lawyer, and not just a free lawyer who is going to tell him whatever so he can make money.
24-Jul-2006, 04:42 PM
#10
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figure this right now he is most likely payin minumum payments and the debt is staying where it is, its gettin no better. and this is costing him over 12grand a year to do this, basically he's throwing 12grand+ away every year for no gain...bankruptcy or a proposal is his best option
24-Jul-2006, 05:00 PM
#13
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See, write now hes at 20K income a year.
He lost his job a while back and thats all he's been able to pick up.
No matter what he does, he can't afford the payments.
Proposal payments would still throw him off.
Thats why I think bankruptcy is best.
i figure for him, 9 months down the road, he'll be discharged. He should pick up a secured credit card and wait 6 years. he'll be 45 K + interest richer overall. right?
He lost his job a while back and thats all he's been able to pick up.
No matter what he does, he can't afford the payments.
Proposal payments would still throw him off.
Thats why I think bankruptcy is best.
i figure for him, 9 months down the road, he'll be discharged. He should pick up a secured credit card and wait 6 years. he'll be 45 K + interest richer overall. right?
24-Jul-2006, 05:12 PM
#14
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BINGO!
drowning in debt is worse than bankruptcy...he should do it before its too late, it will free up money for himself and let him feel better about his financial stability...its not as bad as people make it out to be
drowning in debt is worse than bankruptcy...he should do it before its too late, it will free up money for himself and let him feel better about his financial stability...its not as bad as people make it out to be
24-Jul-2006, 05:14 PM
#16
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Originally posted by Cynikal.Mindset
but really he should be lookin for a better job 20k is like poverty level
but really he should be lookin for a better job 20k is like poverty level
24-Jul-2006, 06:00 PM
#17
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Location: Mississauga
Posts: 13,184
ya in this situation i'd definitely say bankruptcy..
wow only 20k? man needs to look for a new job...
and maybe work on his spending habits, cuz 45 k isn't the kind of debt you get into overnight...
wow only 20k? man needs to look for a new job...
and maybe work on his spending habits, cuz 45 k isn't the kind of debt you get into overnight...
