Is it worth going bankrupt?
February 24th, 2006 by Questions
I am half way through a debt management plan with a Credit Counselling service. I have approx $9,000 outstanding which at the current payments will be be paid in 25 months. I am paying 100% of the outstanding debts, without any further interest being applied. Would bankruptcy/proposal be of any benefit to me with regards future credit applications, time it takes to start acquiring credit again, etc.
I have a combined household income of $63,000 and no assets of any value.
Thank you in advance.
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February 27, 2006 at 9:53 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:
The only way a bankruptcy or proposal will be of benefit is if you are having trouble maintaining the payments under the debt management plan. A bankruptcy or proposal will allow you to make reduced payments, potentially over a shorter time frame (i.e. bankruptcy) but wonâ€™t be of much benefit to you in terms of rebuilding credit.