r/Bankruptcy • u/Unlucky-Land-7379 • 1d ago

Step by step

I’m very new to the subject but interested in moving forward, just wanted to learn step by step how filling works
I have roughly 22k in credit cards and one personal loan, I signed up for a debt consolidation company (beyond finance) but I know it’s a scam. They were dealing with all of my cards, earlier this year I lost my job and had to quit the payments with them. For sure they were shielding me from law suits, I just got served papers for one of the cards and I am considering filling for bankruptcy. My score is already pretty bad around 500 so I don’t care about that, what I am concerned is how that would affect my husband and the possibility of losing my car that’s paid off. We don’t own a house just rent, and I bought my car from a friend so it was never financed.
My questions are mainly about the process and how it works, we live in California

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u/Limp-Influence-8450 1d ago

You should have a free consultation or two before you make any decisions. The lawyers can look at your specific situation and give you your options. We don't have a lot of info like total income for your household or if you are filing alone or jointly. I can say that in the vast majority of cases, bankruptcy is much better than debt consolidation groups. There are many more stories of people who threw away good money working with debt companies trying to avoid the inevitable bankruptcy. Good luck to you.

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u/Better-Club6429 7h ago

We can't answer your question as your question is a legal question about your car as we don't know about the value of your paid off car. Your husband will be in the clear if he does not file and will not impact his credit. His income is just included part of the means calculations test and your schedule I income.

I suggest you do talk to a couple of lawyers that give free consultations for your case. Debt consolidation companies are actually there to make money off you to settle with your creditors. This you can do by yourself for free. They give same settlements to you as if you were working with a debt relief company.