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"Pros And Cons Of Bankruptcy" Discussion

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Upsolve Community Member
2021-12-10

Im 24 years old, have came into quite a bit of debt. Partially due to the obvious young age and making poor choices (I.E. lifestyle inflation etc.), along with switching roles at my job for less pay. The reason for that was a quality of life imporvment. No more long nights, massive amounts of OT, constant stress and so on. Would filing for this make my life harder? Or with my young age would it make it eaiser than paying back the 25k+ in debt? Anxious on making the life choice here.

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Community Replies:

Upsolve Community Member
One of the things to consider is whether you could repay your current unsecured debt in 5 years if nothing at all changes about your income, the balances, or the interest rates. Of course, timing plays a role here too. It's not ok to run up more CC debt than one can handle and then turn around to file bankruptcy. But that's not the same thing as dealing with a mistake from your past by seeking protection in bankruptcy court now. 

Upsolve Community Member
https://upsolve.org/learn/pros-cons-filing-chapter-7-bankruptcy/ is a good place to start! 

Upsolve Community Member
Devyn, I commend you for being REAL! The first step is acknowledging that some poor choices were made along the way. Very few would admit that, yet we ALL have made some poor choices during our life journey. I am reading GREAT NEWS in your post because you KNOW who it is up to learn new habits, such as setting up a budget and STICKING TO IT.  Since I filed Chapter 7 in 2020, I have "raised" $30,000 by pivoting and working side gigs. Sure, I was the beneficiary of the Stimulus payments, but that same $25K (the debt you say you have) was "raised" in less than a couple of years' time. We are all different animals in how we live life, but I will give you a personal opinion based on your intelligent post that you can pay that off. That's just my opinion! Good luck in making your decisions ahead. :-).  P.S. There is a https://my.upsolve.org/rooms/19 forum section in this Community that just opened. I look forward to seeing you there!  

Upsolve Community Member
2021-11-23

How difficult is it after you filing bankruptcy or is the opposite? Any answers will be appreciated.

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Upsolve Community Member
The process itself is not an easy one but extremely rewarding when completed.  Good people do get stuck in a bad situation and we have rights that allow us to hit the reset button and start over through the Bankruptcy court code and system.  The reality is without there is likely no way to get caught up on the debt and ever get ahead.  In my opinion better to start fresh and focus on where we want to go rather than live in poverty and struggle to make banks and creditor corporations another million or billion dollars in profit. 

Upsolve Community Member
Really glad you asked, Laura! Bankruptcy often feels like a fresh start once the process is complete. That said, it's not the right decision for everyone. You might find this article helpful! https://upsolve.org/learn/pros-cons-filing-chapter-7-bankruptcy/ 

Upsolve Community Member
Once the process is complete, we have resources to help you rebuild! This is one of them https://upsolve.org/learn/rebuild-credit-after-chapter-7-bankruptcy/ 

Upsolve Community Member
Upsolvers, what does it feel like after filing? What's been easy or hard after bankruptcy? 

Upsolve Community Member
2022-01-05

What are a few draw backs of filing chapter 7? Like will it affect home buying? How long after filing and being declared for bankruptcy can you work towards homeownership?

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Community Replies:

Upsolve Community Member
Hi Quan, Here are a couple articles to help you out: https://upsolve.org/learn/pros-cons-filing-chapter-7-bankruptcy/ and this one regarding https://upsolve.org/learn/buying-house-after-bankruptcy/

Upsolve Community Member
Quan, you might also be interested in reading https://upsolve.org/learn/how-long-bankruptcy-on-credit-report/. 

Upsolve Community Member
Please let us know if you have any other questions! 

Upsolve Community Member
2021-12-07

My biggest debt is my student loans. I dont make enough money to keep up on my bills and be able to eat if i have to make payments. I would end up losing everything and become homeless. What can i do? I know people have been able to file and win if they can prove economic hardship. Just scared and nervous about doing it and my husband thinks its a bad idea. Not sure what i should do.

5 Reactions

Community Replies:

Upsolve Community Member
Hi Starr, so glad you're here! For student loans, there is absolutely no reason why you can't be in an income-based repayment program regardless of whether you file bankruptcy. Check out https://upsolve.org/learn/4-income-based-repayment-options-for-federal-student-loans/ in our Learning Center to find out more! 

Upsolve Community Member
Greetings Starr! Andrea W. is spot on. Millions are there having this problem.  I have been researching student loan debt and have developed a FREE online  "workshop" that covers the basics in making sure you have the optimum student loan for YOUR situation. The workshop is for people with Fed loans (the micro-course does not cover Private loans) and, in a nutshell, is a public service announcement for the Department of Education since it is the SIMULATOR you will find there that can be the first and best source of finding out what your monthly payment would be under the IDR program (as mentioned in Andrea's comment) options available to you. If you want to learn more about the Simulator, click on my profile pic and it will take you to a link where you can register for the free workshop. I also am keeping up with the almost daily movement on Capitol Hill concerning this crisis. Starr, let me know if you are on an IDR plan. Good luck! :-) 

Upsolve Community Member
Thanks so much for asking- lots of people come here to ask about student loans- really glad you're here and looking forward to seeing your other questions. 

Upsolve Community Member
Have you shared the article on https://upsolve.org/learn/pros-cons-filing-chapter-7-bankruptcy with your husband?  I don't know if he's open to learning more, but maybe discussing each pro and con separately could help the decision-making process. 

Upsolve Community Member
2021-11-16

What are the downsides of filing for Chapter 7 bankruptcy? Am I making the right decision doing this?

5 Reactions

Community Replies:

Upsolve Community Member
Fresh start ! 

Upsolve Community Member
This might be helpful? https://upsolve.org/learn/pros-cons-filing-chapter-7-bankruptcy/

Upsolve Community Member
The article above describes the pros and cons in detail, but here are a few that a lot of people think about! The potential pros often include: the temporary protection of the automatic stay and the bankruptcy discharge. The possible cons sometimes include: not qualifying for Chapter 7 bankruptcy, depending on your circumstances and the cost of the court fees. 


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