Chapter 7 vs credit/debt counseling? Due to circumstances beyond my control, my personal finances have gotten

out of hand. I am now in the position of either having to file Bkrpt, which I qualify for, or pay my creditors through a credit counseling service. After a divorce, my home was sold (no equity), and at the time I was unemployed. I am now employed and renting a tiny house but hoping in the not real distant future to purchase one. I am trying to get my financial affairs in order, but the payments to these creditors are far more than I can afford without going through credit counseling. If I pay them through counseling, it will take several years to pay off my debts. If I file bankruptcy, it will remain on my file for 10 years, but I'll be able to buy a home, albeit with an astronomical interest rate.

Any advice?

well, sounds to me like you are well aware of your options, however, i'd shave about 3 years off that bnkrpt on your report. my husband filed many years ago...7 to be exact and it JUST came off his report.
i went through a program through a law office and it's DMB financial. i was in about $15,000 with credit card debt out of college. looking back, i probably should have just applied for a loan through the bank and paid them off and owed the bank, however, working with DMB has taught me alot and after 3 years, my program is almost done. we are waiting to settle the last account, which should happen in the next few months.

with DMB, they take power of attorney over your accounts....just the ones that you owe. so, the collection calls go to them...not you! then, they work out a workable monthly payment with you and that goes into a trust. then, once there's enough there to settle on a card, they settle and move onto the next account.
meanwhile, all this is happening and your credit is going WAAAAY down the toilet. HOWEVER, when you are done the program they fix all of your credit. so, your report is sparkling when you're finished. the only catch is that IF you get back into the hole while they are working with you, then they will stop all efforts and the contract will be void.
so, if they settle this accoutn and see that i got another card and ran that one up and it's bad on my report, then they wash their hands of me.

SO, it's been a GREAT experience learning how to manage my money and live credit card free.

my husband had some when we married and we are in the process of getting the last one paid off. very nice.

the best part...when we get all of our credit woes under control we will have freed up $500+/month! that's a nice car payment!!!

so, i would check out DMB OR see if your bank would approve a loan for you...at least then it's just one payment per month.

take care:)

Go through counseling and continue renting. If you have another option, ALWAYS avoid bankruptcy.

Avoid bankruptcy.
You are now employed. Try hard to get your financial affairs in order. It will take time, I admit, but better than bankruptcy.
God help you.

Avoid bankruptcy

Bankruptcy is not free, you know. You will pay an attorney up front. And the time and grief you will go through is immense; almost as bad as working to pay off your debt.

I encourage the debt counseling. Live a spartan and frugal lifestyle. About the only way you are a victim is if a child had major medical bills and you were uninsured. Otherwise this is a result of lack of knowledge or bad decisions. Learn your lessons and pay the debt.

There is a moral part to this. While the law allows you to skate on your debt the lender gave you the money in good faith. You have an obligation to repay.

Several years is not that long and you will be proud of what you did and you learned. When your debt is paid don't start buying, start saving instead in a 401k and you'll have a comfortable retirement.

Best wishes
Craig