A Friend Of Mine Has A 70k Loan On Credit Cards, Should He File For Bankruptcy ?. His Interest Rate Is 17% :(?
5 Responses to “A Friend Of Mine Has A 70k Loan On Credit Cards, Should He File For Bankruptcy ?. His Interest Rate Is 17% :(?”
Leave a Reply
You must be logged in to post a comment.
February 7th, 2010 at 8:13 pm
If your friend can make all of the monthly payments (without sacrificing paying for food, the mortgage, utilities, clothing or transportation), then he should make good on his (or her) obligations. It will not be easy, but that is the best solution. Filing for Chapter 7 bankruptcy will stay on his credit report for 10 years (and may not necessarily get rid of all of the debt). Filing for Chapter 13 bankruptcy will stay on his credit report for 7 years. This type of bankruptcy enables your friend and his (or her) debtors to adjust the terms of their agreement to something that he may be able to manage. You may try to find a bankruptcy lawyer in your area who can give some counsel for the specifics. Good luck and hang in there…
February 8th, 2010 at 2:10 am
Good heavens, how could someone get that far in credit card debt? Morally he should pay it, but with that much debt he should file. Yes it will be on the credit report for 10 years but won’t owe of that debt.
February 8th, 2010 at 6:32 am
It really depends if you friend can pay the bills every month. If he can then, there wouldn’t be too much of point to filing bankruptcy. He really needs to be able to make double payments though, in order to get out of debt.
February 8th, 2010 at 10:18 am
this is about a grand a month just in interest charges.
does he have even a chance of digging out from under it?
if not, BK might be the way to go….
February 8th, 2010 at 1:47 pm
Andy is right. The credit cards wouldn’t have given him that much credit if they didn’t think he could pay it back. He should look into a second job and start cutting back on his costs.