Repair Credit or File Bankruptcy?

[Anonymous]

Hi, I'm asking for my husband. My husband was irresponsible with his credit in the past. He has four or five credit cards that have balances and he hasn't paid on them in three-ish years, and a lot of student loans. He has been paying on the student loans, and has a car loan that he pays regularly and on time. His credit score according to CreditKarma is 562, and he was recently pre-approved for a Captial One card that he did end up accepting. Is it better to consolidate the debt and try to pay what you can, or would it be better for him to file for bankruptcy? 

[myjourney]

Request move to RYC to better help OP

[Blodreina]

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@Anonymous wrote:

Hi, I'm asking for my husband. My husband was irresponsible with his credit in the past. He has four or five credit cards that have balances and he hasn't paid on them in three-ish years, and a lot of student loans. He has been paying on the student loans, and has a car loan that he pays regularly and on time. His credit score according to CreditKarma is 562, and he was recently pre-approved for a Captial One card that he did end up accepting. Is it better to consolidate the debt and try to pay what you can, or would it be better for him to file for bankruptcy? 

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I'm not super savvy in such matters, but it seems that filing for bankruptcy would create a new problem.  In my opinion, you'll likely have greater success making arrangements with the creditors and asking for PFDs, sending goodwill letters, etc.

[Shogun]

It would be up to him, everyone's situation is different.  For some, BK is a blessing, for others it doesn't fit as well.  You will need to take a good look at your situation.

I will throw some thoughts on it.  What's the total amount on the credit cards that's not paid.  Is it a manageable amount to be able to pay back.  Also, those student loans, if they are federally backed, then a BK would do nothing for those.  You say he's current on his auto, so that's good and he's gotten a new CC, so that's a couple good accounts he has working for him.

[ezdriver]

The bankruptcy laws exist to help debtors get a fresh start when warranted. The question of whether or not to file for bankruptcy, and which bankruptcy, is one that requires much more information that was provided in the OP as well as consultations with a couple of bankruptcy attorneys.

One has to meet certain requirements to be eligible for filing one or the other of ch 7 or ch 13 bankruptcy. One key quest that you can answer is this: Is your husband's income adequate to support a repayment aggrancement? If not, he should not be taking on more credit until consulting an attorney.

[gearsofwar421]

What is he trying to get the collection accounts off dispute them yhe worst that can happen is they delete them that would cost u one phone call or u can call the company who owns the debt and see if they will settle for less I settled a $1400 debt for $400 and a deletion its very easy to work with the credit bureau directly remember when u dispute a item they have 30 days to respond or by law it gets removed