Reply
Established Member
Justin93
Posts: 16
Registered: ‎12-18-2012

Bk question

Hello,

 

First off great site. I have been reading this site everynight for the past week or so. I currently have about 25k in cc debt, with my income slightly down (roughly 35k). Things are getting extremely tight, pretty much to the point where I have to select which bills I want to pay and which ones I don't. As of today, I have never paid a bill late in my life and I believe that is what is keeping my credit score avg bc my DTI is so high. My credit scores are around 647. My question is if I do file chap 7, should I cont. to pay on those bills that I want discharged so they are not late? Or will it not matter? Second question I have is how big of a impact can I  expect when/if I file? 100 points? more or less?

 

Thanks in advance!

 

Justin

BK discharged 06/13 Eq 585, Trans - 564 (May '14 648,632)
Barclay Rewards card - $2500 CL (Opened Dec 2013)
NFCU Cash rewards - $5000 CL (Opened Dec 2013)
NFCU secured - $500 CL (Opened June 2013)
Fingerhut $400 CL (Opened Oct 2013)
Victoria Secret $500 CL (Opened Nov 2013)
Regular Contributor
Comet21
Posts: 204
Registered: ‎08-29-2007

Re: Bk question

As it is always stated, speak with a BK attorney first and foremost because the rules vary from state-to-state. Now that I have gotten that out of the way, you would be best served to stop paying if you are truly going to file. The attorney will probably advise you to do the same because you don't want to seem as if you are showing favoritism to one creditor over another. Plus, you can use the money to pay for the attorney because in CH7 you have to pay upfront. The attorney cannot be another creditor that you still owe money to.

 

Your open accounts will have to be listed as creditors when you file and most likely the creditors will close your account. We had a Macy's card that we had not used in years with a $0 Balance but Macy's is reporting IIB. Your lates will not show as long as the account is showing as IIB. That is why once you file you need to start going to work in repairing your credit. Your score will probably take hit, only because you do not have any late payments but you will be able to overcome the initial hit in less than 2 years.  Most people who file have late payments and actually see a score increase once they file.


Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700


Take the FICO Fitness Challenge
Established Member
Justin93
Posts: 16
Registered: ‎12-18-2012

Re: Bk question

Okay thanks for the information! One last question... I work for a bank and have a CC through them. I was hoping not the file on them because they are my employer and just pay that card off over the next 6 months. My question is what are the chances of them closing that card if I do not write off that debt? Or should I just swipe the whole slate clean?

 

Thanks,

 

Justin

BK discharged 06/13 Eq 585, Trans - 564 (May '14 648,632)
Barclay Rewards card - $2500 CL (Opened Dec 2013)
NFCU Cash rewards - $5000 CL (Opened Dec 2013)
NFCU secured - $500 CL (Opened June 2013)
Fingerhut $400 CL (Opened Oct 2013)
Victoria Secret $500 CL (Opened Nov 2013)
Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011

Re: Bk question

[ Edited ]

Justin93 wrote:

Okay thanks for the information! One last question... I work for a bank and have a CC through them. I was hoping not the file on them because they are my employer and just pay that card off over the next 6 months. My question is what are the chances of them closing that card if I do not write off that debt? Or should I just swipe the whole slate clean?

 

Thanks,

 

Justin


When filing you MUST list all of your creditors.  Then you can choose which accounts you want to reaffirm.  If your employer lets you reaffirm is up to them.  Paying your employer's cc instead of the all the other cc's is favoritism and is frowned upon...some creditors have been required to return all monies received within 90 days (not exactly sure of the time frame) of the bk filing.  So you can't play one creditor against another by purposely choosing which creditor you favor to pay over another.

 

As someone has already stated, if your intent is to truly file, then it makes no sense to pay another dime to any creditor.  It sounds like to me though, whether you make that decision now or much later, the end result will be that you will have to file.  I do not encourage anyone to file, as I have been through a bk myself, but if you're just prolonging the inevitable then it is best to cross the line now instead of later.  

 

Many people, including myself had fought that same feeling you are having right now, but afterwards are wondering what the heck took so long to actually make the move.  For me, one of THE hardest steps was to admit that I was in over my head, and no matter what arrangements I made with my creditors, that there was no way on God's green earth that I would be out of debt in the next 10 years.  I couldn't vision myself living so stressed out, penny pinching, not being able to eat anything other than rice and beans, no vacations, and no money to pay one cent more than what I was already paying.  Couldn't live with that so I made the decision that this was my only way out.  That was 6 years ago because I filed a chp 13 that took 5 years to complete.  

 

All was not bad during those years....I experienced both highs and lows, but I made it through it and I'm just fine.  So I wish you luck in whatever decision you make.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+