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Bankruptcy?

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cadavis0609
Frequent Contributor

Bankruptcy?

I saw someone else posted something on here about the possibility of bankruptcy. I've been thinking about the same thing and I want everyones opinion on my situation. I currently have only 1 open account left. its a car payment I just picked up because my wife and I had to have a second car. My EQ is 417 and continually falling. I have 60 Late payments, every account that I had open is either in collections or charged off. At this point, I was thinking that a bankruptcy would raise my score. I can afford to pay my debt back, but I'm not positive that I will have the time now that I've waited so long, not to mention that I can't afford to do it all at once and I don't really have enough to satisfy the collection agencies, they all want the money within 1 month. I have about 6k in charged off or collection debt. (relatively small I know) I want a fresh start. I'm tired of having bad credit. I can't get a cell phone, credit card or any kind of loan that would help to bring my scores up. My auto loan that I just got has a 30 percent interest rate, I can't even get an apartment. I messed up, alot of it due to uncontrollable circumstances, some of it just from giving up, but i've learned my lesson and I'm ready to move forward? Any advice would be appreciated.
Sept 07 EQ 419

April 2012 EQ- 669 EXP- 680 TU-700= Proud New Homeowner!
Message 1 of 4
3 REPLIES 3
CreditDrama85
Established Contributor

Re: Bankruptcy?

my advice would be to take the money that you have to pay your collections and divide that by two. then, open two secured credit cards from reputable banks and use your credit lines to pay something on your past due/charged-off accounts.
 
you are in essence killing two birds with one stone.....bankruptcy in my opinion only helps those who are used to paying bills on time and simply over-extended themselves. in your situation, the worst case scenario would be a judgement if you couldn't pay your debts fast enough. your score would recover a lot faster from a pd judgement vs a bankruptcy.
 
the only reason ur score is probably so low now is because ur accounts have been closed. OPEN some new ones!
Message 2 of 4
Anonymous
Not applicable

Re: Bankruptcy?

I had to file for bankruptcy protection in 2005 due to some health problems and financial woes.    I just couldn't make the payments that were needed on my accounts and little by little, each account got to the point where they were closed and I was owning more and more due to collection agencies coming into play.
 
I wouldn't recommend bankruptcy as a tool to get your credit score up, per se, because now, I can be denied for credit just because I have "bankruptcy" listed in my credit report.   I do know that I was able to start over credit-wise due to the bankruptcy (my Fico score is 620 now) which is really what I needed to do.
 
You say you have the money to pay, so that might be a good way to go.  Who knows, after you pay the creditors off some good will letters might get the accounts deleted from your credit report which is ALWAYS much better than a bankruptcy staying on your report for 10 years.  JMO
 
 
Message 3 of 4
Anonymous
Not applicable

Re: Bankruptcy?

Do some reading here. Might give you perspective and "push you" one way or the other.
 
Message 4 of 4
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