HELP - High Utilization of debt to credit line (UTL)..options?

[Anonymous]

THANK YOU all! 

Yes...I'm fighting!  I think...that yes, I will have to sell it all...(it is just stuff), still sad tho.  

 I think if I still can't make minimums on all, then I'll have to determine which I'll hold on to (the oldest, of course, thanks!)

If this happens, collections....can anyone out there tell me how long it took them to re-build to 700's?  

3, 5, 7+ yrs?

And seriously....thank you so much for your responses!  

[Anonymous]

Hi there. I was in the same exact position you were in 2 years ago. I led a good life, with a good job. I got disabled and lost 2/3 of my income. I lied to myself that I could make it work. I burned through all my 401k and savings etc. I Filed for BK with good credit, and two years later I have no debt and a 720 Transunion. It takes work though. You need a secured card, so keep some cash stashed somewhere where you can have it for this purpose. I opened a capital one with a 1000 cash secure. I actively managed, and still do, my credit report. Challenge things that are wrong. I have 3 credit cards now. I also downsized at the same time as my BK. Even with a 2K monthly income, I now live with money to spare. But, you need to LIVE BELOW YOUR MEANS, and you will be heading in the right direction. Hope this helps. It sounds exactly like what you are asking. And long answer short, no it didn't hurt me long term, but you need to make the other efforts, or it may.

Matt

[kjm79]

Ditto to everyone's suggestions above.  I'd add that IF you are seriously considering BK, keep all of your accounts current right up until the day of filing BK.  Don't let the accounts go late and then into collections and THEN file for BK.  That will take you much longer to recover. And in cases of manual reviews, showing current accounts up until filing looks much better.  How long it takes for scores to recover is different for everyone based upon their history and future financial picture. 

Late payments and collections will have a major impact on your score.  That impact lessens the older they get (usually starting around 2 years old) but until gone will drag your scores down.  Have you tried calling the creditors and asking for APR reductions or to work out a payment plan?  Some people have been able to work with the creditors after they informed them they were considering BK but really wanted to honor their obligations.  Rates can be reduced and some creditors will work with you.  They'll probably close the accounts but that's ok as long as they are in good standing.  They'll still stay on your reports.  And IF BK is the route you go, read the forums here. There is definitely life after BK.  Some recover in a year, some longer.   

ETA:

I guess to specifically answer some questions though:

Negative marks/accounts on your reports stay on for 7-7.5 years from the FIRST MAJOR delinquency. 

Ch 13 BK's stay on for 7 years generally.

Ch 7 BK's stay on for 10 years.

Closed positive accounts stay on for 10 years. 

For arbitrations/settlements I'd think they follow the negative account marks timeline of 7-7.5 years. 

[Anonymous]

kjm79 ~

Wow!  THANK YOU for your input, kjm79!  Really great info!  It is nice to have some numbers & start to get an idea. 

REALLY great post...

I will keep this site on my favorites....AWESOME replies everyone - again THANK YOU!

I'm meeting w/an attorney tomorrow to get advice on what I need to do...I'm hoping for options!   Wish me luck.

~ J