06-05-2012 02:31 PM
I was laid off from my job March 26th, and had about two months of expenses in reserve. However, now that we are into June, I am exhausted of every resource: savings, income, cash advances on credit cards, etc. I DO have a job on the horizon, as they officially offered it to me last week, so that's a bright spot, however, they are doing an extensive background check that could potentially take the entire month of June, leaving me again, with no income.
My question is, there are definitely going to be credit card payments that get missed this month. I have ten total, and will be able to possibly pay 7 of the 10. Of the following options, which is best to pursue: 1)Declare chapter 7 and start with a clean slate, since missing payments would probably make my credit score lower than it would be if I just filed BK now or 2) Pay what I can and make every effort to catch up in July?
I already have a low CS, I believe my highest of the three bureaus is 597, the lowest being 540. So, whether I miss payments or declare, it's already going to be horribly low, so wouldn't it be smartest just to move forward and contact bankruptcy attorneys? Any help is highly appreciated as I feel like I can't breath anymore and lose sleep over the fact that I have worked so hard to pay my bills on time(I have some credit cards that haven't missed a payment in almost a decade) and the fact that I can't meet the payments anymore.
06-05-2012 07:00 PM
Call the creditors and explain your situation. You can probably negotiate terms with them that will prevent delinquencies from reporting for a period of time.
It is MUCH too soon to just give in.