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Pay charge offs or Chp7?

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Anonymous
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Pay charge offs or Chp7?

I'm in a bad situation. I really got out of control a few years back and ran my cards up sky high, and then lost my job. Roughly 40k in charge offs, no job, and the creditors are bringing suits. A capital one judgement is about to come down on me also. It's possible that I can borrow money from family to take care of the non capital one debt at ~12k. That number is from collection verbal and written offers. The Cap1 judgment is going to be for 9k and I'm not sure they will work with me before the judgement is finalized. I won't need credit anytime soon, I'm in school and living back home, my worries are after I graduate and start looking for jobs and they see a BK(this won't be for 2 years at a minimum).

 

 

Should I put this burden on my family to bail me out for the 12k and then just deal with the judgement in the future when I'm working? I hate to do this to family, I really do, but I have nowhere else to turn except chp7.

 

 

I'd love any thoughts or advice. Thanks

Message 1 of 4
3 REPLIES 3
gdale6
Moderator Emeritus

Re: Pay charge offs or Chp7?


@Anonymous wrote:

I'm in a bad situation. I really got out of control a few years back and ran my cards up sky high, and then lost my job. Roughly 40k in charge offs, no job, and the creditors are bringing suits. A capital one judgement is about to come down on me also. It's possible that I can borrow money from family to take care of the non capital one debt at ~12k. That number is from collection verbal and written offers. The Cap1 judgment is going to be for 9k and I'm not sure they will work with me before the judgement is finalized. I won't need credit anytime soon, I'm in school and living back home, my worries are after I graduate and start looking for jobs and they see a BK(this won't be for 2 years at a minimum).

 

 

Should I put this burden on my family to bail me out for the 12k and then just deal with the judgement in the future when I'm working? I hate to do this to family, I really do, but I have nowhere else to turn except chp7.

 

 

I'd love any thoughts or advice. Thanks


In your situation I would wipe it all with BK-7 and then begin an agressive rebuild, I would not borrow money from my family for this. If any of this is Student loan debt backed by the govt then its not dischargeable you would want to rehab it...  That is my 2c, welcome to the board Smiley Happy

Message 2 of 4
kjel
Established Contributor

Re: Pay charge offs or Chp7?

In your situation I would wipe it all with BK-7 and then begin an agressive rebuild, I would not borrow money from my family for this. If any of this is Student loan debt backed by the govt then its not dischargeable you would want to rehab it...  That is my 2c, welcome to the board Smiley Happy


I think you should speak to an attorney to see what your options are. Multiple judgments are just as bad if not worse than a BK and by the looks of if, they will keep coming at you as you have sizable debt. Since you don't have much income, live at home, are in school, a BK might give you the fresh start that you need.

 

 

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Message 3 of 4
wa3more
Established Contributor

Re: Pay charge offs or Chp7?

BK follows a person for life. It might come back to haunt you down the road. But it would give you a fresh start.

 

I would wait until the very last minute to file if i had to. You can always wipe out judgments in BK.  Some creditors will not bother to sue. But others will figure you are young and just starting out and judgments can last a very long time.

 

You can offer your creditors 10 cents on the dollar. If they dont accept, do BK, 

Message 4 of 4
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