credit counseling chapter 7 bankruptcy

Record Number of Personal Bankruptcies in 2010. Experts Expect the Number to Rise Further in 2011
A record 1,530,078 bankruptcy filings were completed in 2010, an increase of 9% from the previous year. Experts expect that number to climb even higher in 2011. (PRWeb January 10, 2011) Read the full story at http://www.prweb.com/releases/2011/1/prweb8051362.htm

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I’m thinking of filing bankruptcy.?

I’ve been doing credit counseling for 3 years and because the payment has been so high it has caused me to go into more debt. I know it’s not a good thing, but please tell me there is light at the end of the tunnel.

Any advice, thoughts, suggestions?

And how much does a typical Chapter 7 cost? 900-1200 bucks? Isn’t that crazy considering I’m IN a mountain of debt?
I am doing credit counseling but the monthly payment is too high.
My debt is around $57K and I’m facing a garnishment that I can’t afford.

Let me ask you this. According to your plan with the credit counselor, how long is it going to take (paying what you are now) before you are finally out of debt? More then 5 years?

With absolutely no information about your situation, I’m going to bet you won’t qualify for a Chapter 7. If you have a job, and make over $40k a years, you most likely won’t qualify. But go to an attorney and discuss this, and let him run the numbers.

There is the worst case scenario…you file for a Chapter 13. It will cost around $300-500 up front, but your court costs and attorney fees are included in your BK “plan”.

The trustee will look at your assets, income and expenses, and determine how much “disposable” income you have left. That money will be applied to paying back your debts.

You do NOT pay back all of the debts as a previous responder stated. You may end up only paying back 20%-30%.

The bad part….you are going to be on a strict budget, just like now. No money left over for anything. The good news….you will be totally out of debt no more then 5 years down the road. And the creditors will not be able to touch you (like they are now). You only have to make that trustee payment.

Now, if you can qualify for a Chapter 7, your problems are over. Sure, your credit is trashed for several years. But guess what? This credit counseling has already destroyed it. And I’m sure you have a bunch of other derogatories on your history. But with proper planning, you should be able to get credit within 3-4 years.

Your current options? Fight to find money to pay the credit counselor….while seeing 25% of your current paycheck being garnished….followed by more lawsuits when you can’t pay the counselor.

Anyone wonder why I’ve always said credit “counselors” are a scam? Right here folks! Many times they don’t work.