Whats the difference?

Sam628 asked:


What is the difference between filing for bankruptcy or filing debt relief? I have been helping my daughter with paying for college and things have gotten kind of tight for me.I hate to ruin my credit but the way things are looking right now it appear that i may not have an option.Another question.Do I ruin my credit or try to file for hardship against my 401k in order to pay some of these loans off? Help wanted not criticism!!

Zachary

Tags: 401k, Filing For Bankruptcy, Loans

This entry was posted on Thursday, July 30th, 2009 at 9:55 pm and is filed under Debt Relief. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “Whats the difference?”

1. jdm Says:
   August 1st, 2009 at 10:44 am

   Sheila

   First of all…I’m not a finance guy.

   Secondly, I think the bankruptcy laws will be dependent upon which state you live in.

   I think that bankruptcy should be your last option though, as the subsequent 7-year-blotch on your credit will harm you more in the future. I would also look into other options if at all possible (I’m sure you have done a ton of work already) but there has GOT to be a way to do this without beating up your 401K. I don’t know about you, but I don’t trust social security and would never hurt my 401K…that’s me though. Plus, at this time in the markets, it’ll be the equivalent of buying stock at $100, but then panicking when things got bad and selling for $35. You put money into your 401K at a different time in the market, and if you tap it now, it’ll never get back to what was previously in there without more injections on your end.

   Perhaps there’s scholarship help available? I’ve been given scholarships just based on my last name. Granted, it was tiny, but all of those tiny ones add up big.

   Google scholarships and go from there. Also, you know those commercials with the goofy guy on TV with the suit with the question marks on it? His name is Matthew Lesko (I think) and I’m pretty sure that all his book is about is finding free money from the government. There’s all kinds of money out there, it’s just a matter of finding it.

   Look into spending someone else’s money before you start burning yours. Good luck.

2. We All Y Says:
   August 1st, 2009 at 3:20 pm

   Elsie

   don’t worry there are number of online sites which provide easy ways of obtaining sound debt advice and offering them an online solution that will eliminate your debt problems.thanks