Good evening Fellow Ficoers,
So i have not been active on this forum for a while but I knew exactly where to come before going down this rabbit hole.. So to make a long story short I was doing very well with my credit building process and everything was peachy. But a few bad decisions has brought me to the point where I need to file bankruptcy because I have tried exhausting all options from doing the tackle method to using a DMP. My profile is as following:
Age:26
Debt: 44K CC, 25K Car
Salary: 43K
Backround story: I did things i should not have done for people which lead me to living outside of my means.. About 10K of this debt isnt mine which I would have been fine tackling but with that added portion has put me into a downward spiral. I trusted a friend to use my credit cards with a promise that after she received her severance pay she would pay the card off. To not be so long winded lets just say that never happened and she just left it up to me which it was hard for me to take on that whole thing. I am seeking suit against her at this point in time.
My questions are considering I will be filing CH7 in Feb should i still file my taxes or wait? Should i proceed with the suit against her being that I am filing bankruptcy?
SB: The banks I will be burning are quite a few Synchrony (stores and visa/mcs), Discover, Cap1, Affinity FCU, Citi was AmEX and US Bank. I wish i didnt have to burn some of them like if i could just consider CH7 for my Synchrony cards I'd be fine because Synchrony just has such high interest rates in which when i make a payment which the minimum is insanely high it does nothing to the actual balance. I love my US Bank, Discover and Citi cards and really gonna regret having to burn them but I do not foresee a way for me to pay them down which Synchrony on my trail....Which ultimately its all Synchrony cards which leads me to the point of CH7.
If you think you will win the suit against her, then it might be worth waiting as she could be responsible for paying her portion of the debts and hopefully any interest accrued.
Another option you could consider is to let those cards go to collections and try to settle for a lesser amount since you said you're comfortable paying the other portion of the debt.
Yes you have some debt, but from what you're saying it sounds like you are considering filing over ~$10k, which could be a little silly as you could settle for less than that if the accounts are charged off, and hopefully PFD to get them off of your report.
You could also consider trying to get a balance transfer card to put your highest interest debts on and pay down with no or less interest than what you currently have. A debt consolidation loan could be another consideration.
@enjoimorenow wrote:If you think you will win the suit against her, then it might be worth waiting as she could be responsible for paying her portion of the debts and hopefully any interest accrued.
Another option you could consider is to let those cards go to collections and try to settle for a lesser amount since you said you're comfortable paying the other portion of the debt.
Yes you have some debt, but from what you're saying it sounds like you are considering filing over ~$10k, which could be a little silly as you could settle for less than that if the accounts are charged off, and hopefully PFD to get them off of your report.
You could also consider trying to get a balance transfer card to put your highest interest debts on and pay down with no or less interest than what you currently have. A debt consolidation loan could be another consideration.
I did consider that but what comes up is they always mention the debt to income ratio due to unfortunately a bad car deal that i am in right now which i knew was a bad deal but it needed to be done to get me out of my initial bad car deal.... Ive tried to exhaust ever method before this BK but it seems i keep getting NOs tried my CUs, Banks and even Conslidation loans... just cant get anyone that will work with me....
@pizza1 wrote:If you decide to go the BK route, you can't pick and choose who you want to burn. Everyone goes into the BK pot.....and if you make any large payments to any creditor before filing, the trustee will see that, and ask for the money back from them anyways.
Theres no getting around burning lenders, especially in a BK7...assest or no-assest, you can't show preferential treatment. Trust me, the BK trustee knows everything, and will find out everything as well. You go into the BK already trying to be sneaky with lenders, he/she could just dismiss your case altogether after you filed, and the dismissed case still stays on your reports.
Better to just make a decision now and stick with it. If its BK....you have protection from lenders, as they can't come back and try to sue you. The automatic stay protects you.
If you decide to file, you'll be able to rebuild your credit pretty quickly, but certain lenders you won't get cards with for many years......Amex-5yrs, US bank 5-7 yrs, Citi and Chase a few years...depends. Synch was IIB for me as well, and I had their store cards back within 6 mo. Trust me...you'll eventually get cards. Cap1 is forgiving, and will give you another shot.. You'll start with lower limits, but eventually the limits will grow.
Good luck!
Thanks for you input and support and i understand so i guess i should just stop paying the card since i cant not include any lol makes no sense then .... My next question is that if i burned one CU would another CU perhaps deny me for credit or anything i only ask because ill be burning Affinity FCU and i just joined NFCU a few days ago and hopefully after I am discharged i can get a CC with them to start building over.
Thnx Pizza one question can you clarify what Automatic stay is i do have a BK attorney but i am unsure of the term he hasnt discussed that with me.
@wa3more wrote:pizza and enjoi have given very good advice.
I was 50k in debt mostly to chase. I was waiting for the lawsuits to come and was going to use ch 7 as my final option if faced with garnish/levies.
Chase sued on 1 account and i settled with them. Amex threatened but i elected arbitration then settled for 20-25%. Chase called on 20k credit line and threatened me with the dreaded judgment ! I laughed and so go ahead and if you find any money , let me know. They disappeared.
It is hit or miss with what creditors will sue, who will settle and for what amount. If you don't know anything about arbitration, do some research. It is a leverage tool, especially for smaller amounts, say under 10k. Do your research, know your rights as a debtor and know your state exemptions if you decide bk.
good luck
ah ok thanks for your input and advice... Mine is mostly with Synchrony. Do you have any experience with them?