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Score is 458...should I file for bankruptcy or try

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Anonymous
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Score is 458...should I file for bankruptcy or try

To bring my score up? My auto lease also expires in 5 months.   Any advice? I owe more than I make in a yr. I don't see a way around this. Thanks for your help.
Message 1 of 24
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Anonymous
Not applicable

Re: Score is 458...should I file for bankruptcy or try

Danicats !

 

we feel your pain !  - my husband's cushy job went from tons of OT to salary (no overtime anymore).  My job changed and i lost all my  OT, meanwhile we had over 10 credit cards at their limit, and 2 leases that were more than many people's mortgage payment.

 

We looked into BK ourselves.  We didn't qualify - we made too much.  The atty said we could but the Judge may force us into chapter 13 and who knew what we would end up paying wasn't going to help. 

 

When i went home, I decided to aggressively talk to all our creditors - we informed them we were looking into BK and we didn't want to go that route - 90% of them worked a deal that closed the acct - lowered interest and many payments were cut more that 50% and it was closed end - fees were stopped, - pretty much just like credit counseling but we did it on our own.

 

We cut back on EVERYTHING !! - no going out, dumped land line, paper, everything that was extra was dumped - amazing how it all adds up.

 

WE are stuck in our leases until next June - we wont' make that same mistake again.

 

But we also both picked up 2nd jobs - we tell our kids, its a sacrafice for the mistakes we made swiping those **bleep** cards like it was all good. 

 

I have now paid off 2 cards and we are on a roll and see the light at the end of the tunnel.  i know i'm not suppose to close the accounts, but we are - we decided to keep 1 card open and that will suffice for emergencies and we use the DEBIT only now.

 

If we don't have cash - we go without.

 

Personally, i'd rather save the BK for illness or loss of job - but everyone's situation is different and i'm in no position to judge anyone.   We got here by ourselves and will judge no one.

 

But it feels great to get them paid off and we are working hard to get there.

 

We are still waiting for the score to go up - we had it checked a month ago - my husband and i looked at each other and laughed - hey, it is what it is......490's  - oh well.

 

in time

 

Cut back on everything you can - get a 2nd job - i hate working so much, but we are doing it and my kids are learning from mom and dad's mistakes and hopefully the next generation wont' make these bank executives so rich by paying fees - pay in cash or debit only

 

Good Luck !

 

 

Message 7 of 24
23 REPLIES 23
llecs
Moderator Emeritus

Re: Score is 458...should I file for bankruptcy or try

Do neither. I'd develop a written budget. Make cuts where needed. Stop eating out. Cut cable, newspaper, vacation, etc. Cut out any hobbies that cost $$$. Make changes to needed services (e.g. change your cell phone plan to less minutes or change your car insurance coverage). Suspend investing. Change your taxes (w-4), especially if you are getting a refund. Once the lease is up, go buy a clunker and don't finance it.

 

Look at your income. If employed, get a raise. If self-employed, give yourself a raise. Get a new job if need be. Get a second job. Start your own business to help supplement your job. Look around your house, sell off junk you don't need. If you have an extra car, sell that too.

 

If you are financing any debt, then negotiate lower rates. 

 

Filing for BK will only hurt you more.

Message 2 of 24
Anonymous
Not applicable

Re: Score is 458...should I file for bankruptcy or try

Ohh no! that's not the answer I was expecting.  I will have to give this serious consideration.  This is going to be a long hard road. I don't know if I can live with the sacrifices that have to be made for my mistakes. Thanks for the advice.
Message 3 of 24
Anonymous
Not applicable

Re: Score is 458...should I file for bankruptcy or try


@Anonymous wrote:
Ohh no! that's not the answer I was expecting.  I will have to give this serious consideration.  This is going to be a long hard road. I don't know if I can live with the sacrifices that have to be made for my mistakes. Thanks for the advice.

Well look at it this way: If you file BK there's 7 to 10 years that you will have to make some sacrifices because of the credit crisis and down-turning economy right now.  A BK will stop you from getting a house, a car and some credit cards (as if you need them during that point) for awhile.  Or if you get one the interest rates will be high.  It can even keep you from renting an apartment.

 

You're right in saying that you'll have to think about the decision because it is a big decision.  I know it's hard to make sacrifices because all of us like having things that make living easier but when you get yourself in a hole you have to.  I would use the BK as the last resort.

Message 4 of 24
marty56
Super Contributor

Re: Score is 458...should I file for bankruptcy or try

Anything you can do to avoid a BK you should.  You might check out Dave Ramsey.   You need to sit down and make a written budget, eliminate all none esential spending and possible get a second job.

 

It took me 5 years of living on a strict budget to get out of debt.  Stay away form anything that requires you to do a quick fix. 

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 5 of 24
Anonymous
Not applicable

Re: Score is 458...should I file for bankruptcy or try

I dare post this for fear of being flamed, but....

Ironically, the only credit that may be available next year may be to super-sub-prime borrowers at exhorbitant interest rates.

 

BK is the worst option of all. 

Message 6 of 24
Anonymous
Not applicable

Re: Score is 458...should I file for bankruptcy or try

Danicats !

 

we feel your pain !  - my husband's cushy job went from tons of OT to salary (no overtime anymore).  My job changed and i lost all my  OT, meanwhile we had over 10 credit cards at their limit, and 2 leases that were more than many people's mortgage payment.

 

We looked into BK ourselves.  We didn't qualify - we made too much.  The atty said we could but the Judge may force us into chapter 13 and who knew what we would end up paying wasn't going to help. 

 

When i went home, I decided to aggressively talk to all our creditors - we informed them we were looking into BK and we didn't want to go that route - 90% of them worked a deal that closed the acct - lowered interest and many payments were cut more that 50% and it was closed end - fees were stopped, - pretty much just like credit counseling but we did it on our own.

 

We cut back on EVERYTHING !! - no going out, dumped land line, paper, everything that was extra was dumped - amazing how it all adds up.

 

WE are stuck in our leases until next June - we wont' make that same mistake again.

 

But we also both picked up 2nd jobs - we tell our kids, its a sacrafice for the mistakes we made swiping those **bleep** cards like it was all good. 

 

I have now paid off 2 cards and we are on a roll and see the light at the end of the tunnel.  i know i'm not suppose to close the accounts, but we are - we decided to keep 1 card open and that will suffice for emergencies and we use the DEBIT only now.

 

If we don't have cash - we go without.

 

Personally, i'd rather save the BK for illness or loss of job - but everyone's situation is different and i'm in no position to judge anyone.   We got here by ourselves and will judge no one.

 

But it feels great to get them paid off and we are working hard to get there.

 

We are still waiting for the score to go up - we had it checked a month ago - my husband and i looked at each other and laughed - hey, it is what it is......490's  - oh well.

 

in time

 

Cut back on everything you can - get a 2nd job - i hate working so much, but we are doing it and my kids are learning from mom and dad's mistakes and hopefully the next generation wont' make these bank executives so rich by paying fees - pay in cash or debit only

 

Good Luck !

 

 

Message 7 of 24
Anonymous
Not applicable

Re: Score is 458...should I file for bankruptcy or try

Your score is so low filing bk will help you with a new start. For instance no debt creditors will be more willing to lend you credit cards ect to help rebuild your credit to the fact that you could only file bk only once 7-10 year depending on the chapter. I would not just do it beacuse of the the lease.... how much unsecured debt do you have? I had a lease before filing..... I stop making payments as soon as I filed and was able to keep the car an additional 4 months without payments. It will vary depending on your lender. The BK will only raise your score around 30-80 points..... please give me more info.... maybe with the full picture I would be able to better give you some pointers 
Message 8 of 24
Junejer
Moderator Emeritus

Re: Score is 458...should I file for bankruptcy or try

Kudos to you hockeydebt. I would only say to you that likely the main reason for the 490s is util %, which unfortunately came from closing the CCs and losing the CLs. Keep plugging away though, you seem determined, you'll get there.






Starting Score: 469
Current Score: 849
Goal Score: 850

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Message 9 of 24
Anonymous
Not applicable

Re: Score is 458...should I file for bankruptcy or try

first off BK is NOT the end of the world...every situation is different and for me buckling down and "doing w/o" wasn't an option since I allready had bare minimum and I'm a single mother of 2 school age children. In my younger years I had no clue how important good credit was til it was too late so I had to file Ch 7 in 2005. Since then I have gotten a carloan w/o a co-signer, several CC's in the past year or so, and student loans so I could finish my education and get a better job oh yeah and I got a cellphone on contract w/o a deposit. My scores are in the mid to upper 600's partialy due to a high util right now which will change in the next 2 months. So again BK works for some and doesn't for others and I think more info is needed to give better advise. Good luck in your journy to fixing your credit.
Message Edited by German_Girl on 12-09-2008 03:07 AM
Message 10 of 24
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