When is the right time to file?

State is New York.

I already have a debt reduction plan with a credible consumer conseling agency. My debts are store cards/credit cards. I agreed to the plan because my partner stated he would help me out and help me pay off my debts. However, this help has not been forthcoming and the payment plan is stretching me. I can continue to just about make the payments monthly, but then I cut back on everything else (bills, food, even rent and then try and make it up the next month) I don't go out much or on vacation and the way things are now, I can see a very bleak 4/5 years in paying off this debt. My salary is unlikely to increase.

The biggest drawback I can see is that in filing for bankrupt, it will be very difficult to get a mortgage etc for 7-10years. However, being on a debt reduction program is also likely to affect my credit/loan/mortgage chances. Just wondered if anyone has also struggled with this issue. I am responsible for my debt and have really tried my best to pay it off, but the thought of filing for bankruptcy makes me very guilty. However it appears to be my only solution. Any thoughts?

[HomeGuru]

Filing BK will get rid of your unsecured debt. You are mislead on the mortgage issue. If you build up your credit after BK and keep current on your payments etc. you could get a mortgage even after 1-2 years following BK discharge. You should talk to a mortgage broker about the options.

I'm in the same situation.. I went through the consumer credit service.. they really didn't help.. my interest rates were never lowered and I was better off transferring balances around. I also believe being on the plan hurts your credit.
I'm not sure whether to file bankruptcy - ? have you been to a lawyer.. have you been late on any pymts ( I haven't)..

I am actually going to see a lawyer tomorrow! I'm not late on any payments yet, but it gets harder and harder each month to keep up. The more I think about it, bankruptcy is the best option for me in my situation. Good luck to you.

I once had a loan specialist tell me that going through a debt counseling agency is almost as bad on your credit score as bk. Makes sense that creditors would be even more leary because you still have the debt and with bk you can't file for 6 years afterwards and you don't have that debt anymore.

[MidnightSwinga]

User -

My situation is very similar to yours. I had a large amount of unsecured CC debt and had never been late on a payment. But each month we were just making the minimum payments and enough to get by. The thought of filing a BK to me was something I was totally against and felt it was the "easy way out".

Well, after doing some serious thinking and number crunching, realizing I would be enslaved to the CC companies huge interest rates for the next 5-7 years we've decided to go ahead and file in Sept. Now the thought of being able to start saving for my baby's education and getting a "fresh" start excites me.

BK is something the law provides for people who have gotten in over their heads. I encourage you to speak with an attorney and explore all your options.