File BK or pay off charge accounts?? Please Help!

2009 · ‎09-27-2010

Hello, I have about 15 credit cards and I am totally having a hard time paying for them since my divorce. I have been receiving letters every month about the credit cards offering me a settlement for way less than I owe. I have also been thinking of filing bankruptcy. I need help!!! Would it be better for me to try and pay off some of the charge off's one a time or should I just file bankruptcy?? I am at a totally lost. If I pay off the charged off credit cards will it help me in the future or will I be better off just filing bankruptcy???

Please Help!!!

LIGHTNIN · ‎09-28-2010

You may want to consult a "legitimate" non-profit debt counseling service as an alternative to bankruptcy.

I had the same question about BK about 7yrs ago. I went to a non-profit debt counseling agency.They told me I didnt have enough income

to pay back my debt.So I decided to do it myself. It was alot of hard work, but now I am debt free. I also had 15 different accounts.

You are off to a good start, you found myfico. I read all the sticky posted in every board and the education and financial help center.

Along with very nice support from everyone here is what helped me along the way.Good Luck to you.

FICO's May 2015 EQ764 ~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?

2009 · ‎09-28-2010

Hello Lightnin, thanks for the advice. Just wondering...were your accounts charged off and closed out before you paid them off? Most of mine have been closed out by the bank and charged off.

Anonymous · ‎09-28-2010

I'm confused. If your CC's are charged off, how would BK benefit you?

I'm just not that familiar with how that would work.

And, as always, it's a good idea to check in with a reputable BK attorney. They'll provide you with info and insight even if you don't hire them or file.

ETA: From your previous post, Need Help w/Ch 7, it looks like you've been working with an attorney. There's some helpful feedback on that post. That feedback, along with the advice you receive from your attorney should be helpful to you as you move forward. But, it looks like it's time to make some decisions - you'll sleep better once you've done that. Best wishes to you and your family!

Anonymous · ‎09-30-2010

@Anonymous wrote:
I'm confused. If your CC's are charged off, how would BK benefit you?

I'm just not that familiar with how that would work.

And, as always, it's a good idea to check in with a reputable BK attorney. They'll provide you with info and insight even if you don't hire them or file.

ETA: From your previous post, Need Help w/Ch 7, it looks like you've been working with an attorney. There's some helpful feedback on that post. That feedback, along with the advice you receive from your attorney should be helpful to you as you move forward. But, it looks like it's time to make some decisions - you'll sleep better once you've done that. Best wishes to you and your family!

Ch. 7:

For starters, it would keep one from getting sued. It would also keep the account from being sold to a multitude of CAs who would undoubtedly also add a negative TL to one's CR.

Even though a debt is old does not mean it still isn't collectable. BK nukes the debt completely off the screen.

Anonymous · ‎09-30-2010

@Anonymous wrote:
@Anonymous wrote:
I'm confused. If your CC's are charged off, how would BK benefit you?

I'm just not that familiar with how that would work.

And, as always, it's a good idea to check in with a reputable BK attorney. They'll provide you with info and insight even if you don't hire them or file.

ETA: From your previous post, Need Help w/Ch 7, it looks like you've been working with an attorney. There's some helpful feedback on that post. That feedback, along with the advice you receive from your attorney should be helpful to you as you move forward. But, it looks like it's time to make some decisions - you'll sleep better once you've done that. Best wishes to you and your family!
Ch. 7:
For starters, it would keep one from getting sued. It would also keep the account from being sold to a multitude of CAs who would undoubtedly also add a negative TL to one's CR.

Even though a debt is old does not mean it still isn't collectable. BK nukes the debt completely off the screen.

Oh. So if an account is charged off, it's still "live"? I was under the assumption that charged off accounts were 'dead" or done. This is interesting to me - I'm so glad you posted. So what does "charged off" really mean? That the OC will not pursue collections but may be willing to sell it to a CA? What is the benefit to the OC to list an account as "charged off"? So many questions, so little time.......

Anonymous · ‎09-30-2010

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I'm confused. If your CC's are charged off, how would BK benefit you?

I'm just not that familiar with how that would work.

And, as always, it's a good idea to check in with a reputable BK attorney. They'll provide you with info and insight even if you don't hire them or file.

ETA: From your previous post, Need Help w/Ch 7, it looks like you've been working with an attorney. There's some helpful feedback on that post. That feedback, along with the advice you receive from your attorney should be helpful to you as you move forward. But, it looks like it's time to make some decisions - you'll sleep better once you've done that. Best wishes to you and your family!
Ch. 7:
For starters, it would keep one from getting sued. It would also keep the account from being sold to a multitude of CAs who would undoubtedly also add a negative TL to one's CR.

Even though a debt is old does not mean it still isn't collectable. BK nukes the debt completely off the screen.
Oh. So if an account is charged off, it's still "live"? I was under the assumption that charged off accounts were 'dead" or done. This is interesting to me - I'm so glad you posted. So what does "charged off" really mean? That the OC will not pursue collections but may be willing to sell it to a CA? What is the benefit to the OC to list an account as "charged off"? So many questions, so little time.......

After a certain time period (generally 6 months) a creditor must remove bad debts from their books and take a tax credit. At this point the OC generally also sells the debt to a CA.

A CA can attempt to collect until Hell freezes over, but can only take legal action to enforce the debt until the statute of limitations expires. They can only report on your credit report until the credit reporting time period expires. The underlying debt, however, never dies unless discharged in BK.

Anonymous · ‎09-30-2010

@Anonymous wrote:
After a certain time period (generally 6 months) a creditor must remove bad debts from their books and take a tax credit. At this point the OC generally also sells the debt to a CA.

A CA can attenpt to collect until Hell freezes over, but can only take legal action to enforce the debt until the statute of limitations expire. They can only report on your credit report until the credit reporting time period expires. The underlying debt, however, never dies unless discharged in BK.

I may be the only one here who didn't understand that. Many thanks for the post!

Anonymous · ‎09-30-2010

@Anonymous wrote:
@Anonymous wrote:
After a certain time period (generally 6 months) a creditor must remove bad debts from their books and take a tax credit. At this point the OC generally also sells the debt to a CA.

A CA can attenpt to collect until Hell freezes over, but can only take legal action to enforce the debt until the statute of limitations expire. They can only report on your credit report until the credit reporting time period expires. The underlying debt, however, never dies unless discharged in BK.
I may be the only one here who didn't understand that. Many thanks for the post!

You are pulling my leg, right?

I could have sworn that I learned most of this stuff from you before.

MarineVietVet · ‎09-30-2010

@Anonymous wrote:
@Anonymous wrote:
I may be the only one here who didn't understand that. Many thanks for the post!
You are pulling my leg, right?

I could have sworn that I learned most of this stuff from you before.

Don't let her kid you O6. She is the one I turn to for advice about BK's.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work