Sunday, November 14, 2010

I want to get my credit together so I can buy a home, should I file bankruptcy? If so, how? What should I do?

I'm 23 years old and I am in $30,000 worth of debt. That includes a repo'd car, a default school loan, and some $500 bills here and there. I've never had a credit card and as crazy as it sounds, my mother use to use my name to order off the home shopping network and for her utility bills. I have tried to dispute it but with no luck. I just want to start off fresh. It will take FOREVER to pay off that much debt. So should I file bankruptcy? What chapter? Any advice?I want to get my credit together so I can buy a home, should I file bankruptcy? If so, how? What should I do?
Step one:

Get your credit reports at

annual credit report. com - print out all 3 reports

Take them to the police station and file a police report against your mother.

Mail the police report along with a dispute of the item.

The item will be removed instantly.

The police will deal with your mother and make her pay.

If you don't want to get your mother in trouble for what reason - after she destroyed your life.

You must pay off this debt. Bankruptcy will ruin your credit for 7 to 10 years.

Employers check reports, so do landlords, and car insurance companies.

If you want to pay get a book on Debt Repair from your bookstore.

Worth it's weight in gold.

It will teach you how to negotiate, settle, and set up payments.

Or contact

It's a non profit government agency that will help you at no cost.

Go to the website - call the 800 number (not email), and make an appointment at a local office today.

/I want to get my credit together so I can buy a home, should I file bankruptcy? If so, how? What should I do?
First off, bankruptcy will do NOTHING for your student loans. You do not get a free education at the expense of the tax payers. Second, bankruptcy will DESTROY your credit for MANY MANY years. Either way, filing for it or not, you are many years away from being able to buy a house. You cannot even afford your CURRENT bills...what makes you think that you can afford a mortgage, property taxes, homeowners insurance, PMI, maintenance, etc...ON TOP of everything else. You are FAR away from being in that position.
You should check with a credit counselor. Contact for help. If you have student loans they may no be able to be wiped out by bankruptcy %26amp; a bankrupty stays on your credit report for 7 years. In order to pay these off you need a plan, even if it involves reporting your Mom to the police for fraud in using your name %26amp; credit.

Good Luck
Well the school loan will only be paid if it is a private loan not a federal student loan. I would suggest not filing bankruptcy (it would take 7 years before you could purchase a home). Yes, you have a lot of bills but if you call the bank that repo'd your car they will work with you to make a very tiney monthly payment which will show on your credit that you are paying this debt. There is no easy way out... just pay your bills little by little. If you do decide to file .. .remember that bankruptcy is very expensive so you need to save up for your attorney fees etc...
$30K in debt including a repo car and student loans ... I suspect that the bulk of that $30K has nothing to do with debts your mother created in your name. If you are not willing to prosecute your mother for ID theft, you will have to pay those debts anyway.

There is no way you are in any kind of position to buy a house. Not only will bankruptcy further damage your credit, but those student loans probably won't be discharged in bankruptcy.

What you REALLY need is to learn some better financial management skills. Check with a credit counseling service for some help with budgeting: Since all your debt is defaulted, they probably can't help you with a debt management plan.
You need a free bankruptcy evaluation by a local attorney. Id call Total Bankruptcy toll free at 1-877-530-8616, they will point you in the right direction.

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