Bankruptcy Fallout

Bankruptcy Is Not Always A Good Idea

I am a 24 year old recent college grad. Over the course of my college years I have accumulated over $10,000 worth of debt.

I just filed bankruptcy about a month ago and I haven't been discharged yet. I was just wondering if I had made a bad mistake for not filing bankruptcy a couple months out of college.

I took a job right out of college at a furniture store where I currently work. So, I really wasn't making enough money to pay my owed debt on time.

I just recently got a job offer and I a waiting to get discharged from bankruptcy. Will this effect me from getting a decent car and maybe a apartment or home in the near 2 or 3 years?

Charles

I think you have truly gotten off on the wrong foot. $10,000 is hardly oppressive for a college graduate just starting his career. I assume this is unsecured credit card debt, not student loans, which won't be discharged.

The answer to your question is yes, you will have trouble affording a decent car, finding an apartment or getting a mortgage for at least the next two to three years. You might also have trouble getting ahead in your career and might pay more for insurance.

I don't know what your salary will be, but you might want to consider converting your bankruptcy from Chapter Seven to Chapter Thirteen and paying off a good chunk of that debt. While you will still have a bankruptcy on your credit report, creditors might treat you more kindly if you tried to pay back a substantial chunk of this debt.

I wish you luck and hope you have not done yourself too much damage.

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