Is bankruptcy the way to go???

I am only 20 and I feel as if I have bad credit. I have taken out six credit cards to help my mother pays bills when she went broke and I have not paid my bills for 6 months and I was wondering if I should file bankruptcy. About 7 months ago my credit score was 640, now I'm not sure. I have heard that you can file bankruptcy and still even drive a brand new car and get financed. At the same time, I heard that if you don't pay any of your debts they will just fall off of your credit report after 7 years. Are either of these true?? Any advice??? HELP PLEASE!!!!!!!!!!

If I am actually able to make some type of payments, would it be better to do that, or just let it fall off my record??? It would be paid off within 7 years. So would that help my credit score or me at all???

First of all you need to check your credit report ASAP. Go to https://www.annualcreditreport.com/cra/i... You can obtain a FREE credit report to see who has reported you. I suggest obtaining all three so you know who has recorded what. Are you getting calls from the credit card companies to pay? Depending upon how much you owe, you may be able to work with the companies to set up a payment schedule if they haven't taken them to collection agencies. If they have been sent to collection agencies, you most likely will be able to settle with them. However, if you do this, make sure you get everything in writing, as they do not always do what they say they will do. Go to http://www.creditinfocenter.com/debt/set... to get more info on debt settlement. There is a right and wrong way to do this.

Do not file for bankruptcy, that is the worse thing you can do. If you file for bankruptcy, you have no right to have a new car, either.

Yes, if they are on your credit report, they will fall off, depending upon what state you live in. It is called statute of limitations, go to http://www.creditinfocenter.com/rebuild/... for additional info.

Like you said, you are only 20, if you can get your mom's help to pay off these cards you will slowly be able to build back your credit.

Lastly, never help your mother again using credit cards. It is not your obligation to put yourself in this financial mess when she cannot pay the bills. Make wise decisions and never use credit cards again unless you can afford to pay it off in full.

You should avoid bankruptcy and contact Adorra at Andorra.com you can work with them to help you fix your credit. It takes awhile but very worth it! A bankruptcy is not worth it for you. Your cards will go to collections and then eventually to charge-offs. I work in the financial industry and I definitely would say to stay away from bankruptcy at this point.

DO NOT FILE BANKRUPTCY!!!

I am thinking that you are single. You can get a second job and pay off your debts. A bankruptcy stays on your credit for 10 years! When you go to buy a house and they see that on there it doesn't look good. Also those "people" you see driving a new car after filing haven't learned their lessons! Their interest rates must be threw the roof!!! Having a credit card is borrowing money. You have to pay it back. It shows good character. Call the credit cards, explain what is going on. They are more able to work with you if you approach them first. This can be worked out. Do it now before it gets any worse.

If you are going to file, hire a bankruptcy lawyer,they specialize in that field.Look up on the Webb the bankruptcy laws for your state. Anything you don't include that you owe on you can keep but will have to continue paying for it. Consider that if you decide to not pay the Dr's. bill for example chances are he won't be your Dr. anymore. Yes you can probably get and drive a new car but you will get financed at a high interest rate because you are a risk. There is a lot to filing and it should be a last resort. Try calling the cc comp. and see if they can work with you on a solution for the debt, perhaps a lower int. rate.

First, bankruptcy is not the way to go. People are so quick to file. No matter what people may say, bankruptcy is not easy to file and is extremely stressful (more stressful than not paying your bills).

Yes, some people will receive credit cards and car loans after filing for bankruptcy only because they will get a lousy interest rate among other possible hidden fees if they qualify?

Yes, unsecured accounts will fall off your credit history within 7-10 years. However, ask yourself, do you really want to go 7-10 years of harassment from bill collectors? 7-10 years of living under the financial radar?

Call your credit companies and negotiate a payback plan. Credit companies are willing to work with you (to their advantage mind you). However, it is better than filing or not paying.

An additional route is credit counseling. There services is not free. However, they can negotiate directly with your credit cards to lower the payments and APR (sometimes to 0% under the payback program).

You are still young and need to think of the future (in years). What if you get into an accident and need a new car? What if your bankruptcy has two more years on your credit history but you decide to buy a house? If you are not a student, concentrate on working and paying off the debt.