12-01-2010 06:28 PM
I accept I'm responsible for the student loans and they are not going away in a BK. Even so, by discharging the credit card debt, $900 a month, it will make it possible for me to pay my student load debt, $400 a month.
I don't want to file BK period and keep searching for an alternative to deal with the credit card debt. I've already negotatied most cards down on interest rate, but it's still too big a burden being unemployed.
12-01-2010 10:31 PM - edited 12-02-2010 07:15 AM
Congrats on meeting with your BK attorneys.
Their job is to give you information and alert you to options.
Now, as you move forward, you have a chance to put the information to good use, make some decisions and take care of things.
BK is sometimes the best and most appropriate option for folks. I filed CH 13 BK, which distressed me greatly. It was the right thing to do given the situation. You are the only one who can weigh your options and make the decision that's right for you.
When you met with your attorneys, they were able to tell you what the benefits and drawbacks of the BK were, if it was appropriate for your situation, and how it would allow you to best work with your other creditors. When you're ready, it will be your turn to make a decision; and take the most appropriate steps for you.
And again, all the best wishes to you!
ETA: carolina, back to your original post, "how does that affect my credit and credit score?"
Withdrawing a BK, as we touched on earlier, will not change the impact of the BK on your FICO score (although FICO score is not the be all and end all of life - consideration must also be given to what financial decisions serve you best now and in the long term).
The effect of BK on your score varies considerably, depending on what your current score is and what other items are on your report.
With a BK on your CR, with good management of other accounts on your report, your FICO score can easily be in the 700's - and up to 759 according to some reports.
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