@abiso wrote:
Over the past year, a series of escalating hardships has caused me to fall behind on nearly every bill. For medical reasons, I had to leave my job in October and home and move in with a friend, who has been helping me with my bills to the best of his ability. But what's been most neglected are my credit cards. And he's just got too much to help me with to take on these payments, which have piled up into pretty large amounts, in addition. I also have a couple of smaller things that may have gone to collections, and one unpaid medical bill.
So let's be clear: paying these things right now is simply not an option. I already know that I'm tanking my credit, and it's a horrible feeling. But it's the way it has to be for now. I am hoping to be working again within the month, but I have some catching up to do, plus will need a deposit for a new rental home (he'll have to cosign, probably), so I have no idea when I will get to these credit cards. If my tax return is larger than expected, who knows. But I'm not holding my breath. So yeah--please don't tell me I need to pay it all or get caught up or whatever, because I cannot. The money does not exist.
So my question: do I declare bankruptcy and discharge some of this debt, maybe leaving one credit card and getting it caught up just so I can eventually have that helping my credit, or do I just let the delinquencies linger and the days behind stack up until I can eventually (maybe months down the line) catch up? Some of it, like the medical bill, may remain unpaid for a very long time. Years, I don't know. I'm doing what I can, which right now is very limited. Better to discharge all the things I can't pay by staining my credit report for 11 years with a bankruptcy?
I know it feels hopeless right now, but you can turn this around.
Sounds like you have a very good friend helping you which is important when you are in a really bad spot.
There is a misconception in your post though - you can not pick and choose your debt. If you decide to file Bk (which I don't recommend at all in your situation) you have to include all of your debts - all credit cards, even if they are current and all installment loans (your car) and every debt you have outstanding.
From your list, it doesn't look like you have much at all in the way of debt. In fact, it would cost you more to file Bk than to pay off your balances. I was charged $2700 including the filing fee and I don't see where you owe that much. Plus the penalty for filing is long lasting.
Negotiate with your creditors. If they won't negotiate, let them all go to charge off and deal with it when you get actual income coming in on a steady basis. Try to keep your car if possible so you can get a job.
All is not lost even if every cc goes to collections because what is important right now is your health. Once you have your health and a job, then come back here for recommendations on dealing with the collections and charge offs. Feel better. Get your strength and health back.
