I want to know is bankruptcy the answer for my situation? I dont have trouble paying my mortgage. I recently did debt consolidation. I payed off car.

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I want to know is bankruptcy the answer for my situation? I dont have trouble paying my mortgage. I recently did debt consolidation. I payed off car.

Before the debt consolidation, I still could pay my credit card bills. They just werent going down. I own my home but too soon for home owners. I am doing a streamline fha(in progress). I want to do bankruptcy because I never have any money left over to save. If anything serious happens, it will all fall apart.

Asked on May 31, 2009 under Bankruptcy Law, Maryland

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Bankruptcy isn't intended or designed to help people in your situation.  It's for people who are "insolvent," which means at least one of two things:  their debts are greater than their assets, or their bills are greater than their income.  If you're making your payments, you don't really qualify.

There are long-term costs to a bankruptcy, it will harm your credit rating for years.  Most people should not do it unless there is no better alternative.  You would also be barred from filing another bankruptcy for a number of years, even if a true crisis wiped you out then.

For a detailed understanding of your options, in this, you should talk to an attorney in your area, who can give you sound advice based on all of the facts of your situation.  One place to find a lawyer is our website, http://attorneypages.com


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