Chapter 7 or chapter 13 bankruptcy?

[Jem]

If you have no other choice and need to file bankruptcy, which is better chapter 7 or chapter 13? After trying to find ways to be able to take care of our responsibilities we have come to the last resort and that is to file bankruptcy. We don't own any homes or any real property. what I am curious about is which is better chapter 7 or chapter 13. We want to be able to start saving a soon as it done and when feasible start rebuilding credit. Our credit card debt is only $1200 which is a lot, but it could be worse. We just had two bad years with this one being the worse. I am looking for advice on the best way to go between the two. Chapter 7 or Chapter 13 and why. We are not happy about doing this as we have tried everything. We don't have anything of value and we have tried to pawn stuff but couldn't get $25.00 for most. We live very modestly. So please do not answer this question if you are going to be negative. Thank you so much. We want to do the right thing so we can start over and never have to do this again.

[pathfinder]

I would strongly advise against it with only $1200 in debt, i looked into it awhile back, you'll have to sell any assets you have, cars, boats, whatever, and ruin any chance for regaining your credit fast. So, if you both get a second job, it will seriously take no time to pay that off, and you'll be back on your feet in no time, if your convinced that wont work, look in the phone book under bankruptcy, and set up an appt, with a lawyer, they will tell you everything you need to know.just a last note: another option to try is Prsoper.com

[whyyesidorule]

1200 isn't alot. call your credit card and work it out with them.good luck!

[acaligirl]

Seems to me that your debt is not that large at all and filing for bankruptcy is an easy out with dire consequences later, ie. higher interest rates on any and all credit purchases for years.5 Years ago I was far more in debt than you seem to indicate here. I am talking over 150,000 grand. Now I did sell my home but still had over 25 grand to pay after that. (I had divorced and my ex wife gets alimony) I started paying my debts concentrating on the biggest ones first. I also elliminated any nights on the town or buying anything extra at the store. It by no means has been easy but I can tell you today I have only about 2 grand left to pay and that will be gone by the first of the year. I did not file backruptcy of any kind even though my ex that lives rent free, utility free, and collects money from me did file and got it.You do not have to file bankruptcy. I am assuming since you said we that there are two of you. Correct? Are you both working? Try this first. Track every single dime you spend for a month. Every last cent. If you do not know where it is going, you have no clue where it is being wasted or lost. Call your creditors and work out a reasonable payment plan and stick to it. Cut the cards in half! Borrowing from peter to pay paul will never work.If an drunkin bum can climb out of the gutter surely you can.Good luck either way.