@Anonymous wrote:
@Insoc wrote:
Problem is, the damage is done, but you only have two realistic options, pay it off or file BK. I have heard of people not doing anything and getting away with it, but I think wage garnishment and or being sued and etc is the likely next course of action even before you qualify for SOL, in California it's 4 years (statute 337) Even if you pay them off, your looking at years of negative credit history for this. I can attest to having several CCs going to collections and charge off pre BK filing, if your lucky some will drop off your reports, I had 5 CCs included in my BK, only 3 are showing up on my credit reports as negatives, most say the will be removed in 6 years. I noticed that the accounts I closed prior to being late, never showed on my credit reports.
All depends what your future plans are, filing BK allows you to to do repair, while not doing anything may haunt you forever.
You know I wanted to declare BK but I was more hesitant because I deal with commercial real estate and though my partner is the one who gets the loans I just fear that BK looks worse. I was just thinking of paying them off and then goodwilling them to death like others have stated because none of them will agree to a PFD at all which is a bit strange, but then again I have read on all the forums that the big banks do not do this at all.
Did you try to get a mortage or any type of loan that required a manual review and if so did they care about the BK or not at all? If you had to do it all over again would you have just paid off the charge offs or declared BK if you had the money to pay off the charge offs? I just want to get your take on it since you've already been through this process.
No, no mortage or any loans, just a credit card as of late. I might try a car lease soon for the family, since I affirmed a lease and financed a car prior to BK, the auto side of it is clean with no lates or defaults. 14 months past discharge, and things are turning around.
Also I could not pay off my debt, was over $30K and had a extended job loss, wife was already out of a job too, burned though savings for 8 months, kept paying my debts and was okay until the money ran out and then I got a job for way less than I made and lost it 8 months later, filed Chapter 7 and got another job a month later, of course making even less $ but discharge came and went.
I did pay off my credit cards once, a number of years ago, when I had a large amount of cash from a sale of some assets, had $0 debt, within a couple of years I was back in debt again. Investigated filing Chapter 13 in 2007, didn't do it and ended up filing in 2013. Wish I did it sooner, though 13 would have been tough.
For me filing BK was the best decision I ever made, I lost thousands of $$$ over the years trying to pay down debt with not enough cash flow. I was getting hit with high APRs and creditors would not work with me, I tried GW letters, calls and etc. Some would give me 6 months then increase it back up to insane rates. Most were under 10%, but even 10% of $5K/month is a lot. I had Citibank call centers employees laugh at me on the phone when I asked them to throw me a bone on the APR, literally laugh to the person sitting next to them, like I was on speaker phone.
I also lost some assets in filing BK, not much I could do and the value was not that much.
Suppose you have to weigh it out with a free consulation with a Lawyer.
