What is going to hurt my credit the least?

Anonymous · ‎11-25-2016

Hey guys, so I am kind of stuck between a rock and a hard place right now and want to get some other peoples opinions on what I should do.

I am in a lot of debt. I have a car loan for $25,000 and like $30,000 in credit card debt, so like $55,000 in total. The minimum payments for all of it are high and I'm struggling to meet them every month, mostly because, I just lost my job. I had a gameplan created a while ago about how I could pay off most of the credit cards over the next 100 days, but that went **** when I lost my job. Submitted a claim for unemployment but it is likely to get denied. I was simply going to land a new job and pick up where I left off, but life threw me more lemons, and now I might end up going to jail for 60 days or something like that. Long story short, I got a DUI, I'm required to have a breathalyzer in my car. I didn't really think I had a choice at the time but I drove my friend's car who didn't have a breathalyzer isntalled, and they want to violate my probation. My lawyer said I might do around 60 days in jail. Being that my bills are so high, and I lost my job, and it wouldn't even be worth applying for a new job now, just to lose it if I go to jail in 2 or so months, I am wondering what I should do. I've already borrowed money from family, they won't loan me more, and I have applied for consolidation loans and keep getting denied.

Basically, at this moment in time, I can't afford my monthly expenses. Once I get a job again I should be able to, but that likely won't be for some months.

The way I see it is, I can pay my bills up until I simply can't anymore, and let them go however far past due, possibly 90 days (and I have like 15 accounts) and then resume paying them in a few months if they don't end up by suing me before then

Or, I can file bankruptcy.

I would like to avoid bankruptcy at all costs because I'm hoping there's a less damaging way out of this, but if I let all 15 of my accounts go past due by 90 or so days, wouldn't it hurt my credit just as much in which case I minus well just file bankruptcy?

I have no idea what to do. I need help. Any input is appreciated.

Anonymous · ‎11-25-2016

@Anonymous wrote:
Hey guys, so I am kind of stuck between a rock and a hard place right now and want to get some other peoples opinions on what I should do.

I am in a lot of debt. I have a car loan for $25,000 and like $30,000 in credit card debt, so like $55,000 in total. The minimum payments for all of it are high and I'm struggling to meet them every month, mostly because, I just lost my job. I had a gameplan created a while ago about how I could pay off most of the credit cards over the next 100 days, but that went **** when I lost my job. Submitted a claim for unemployment but it is likely to get denied. I was simply going to land a new job and pick up where I left off, but life threw me more lemons, and now I might end up going to jail for 60 days or something like that. Long story short, I got a DUI, I'm required to have a breathalyzer in my car. I didn't really think I had a choice at the time but I drove my friend's car who didn't have a breathalyzer isntalled, and they want to violate my probation. My lawyer said I might do around 60 days in jail. Being that my bills are so high, and I lost my job, and it wouldn't even be worth applying for a new job now, just to lose it if I go to jail in 2 or so months, I am wondering what I should do. I've already borrowed money from family, they won't loan me more, and I have applied for consolidation loans and keep getting denied.

Basically, at this moment in time, I can't afford my monthly expenses. Once I get a job again I should be able to, but that likely won't be for some months.

The way I see it is, I can pay my bills up until I simply can't anymore, and let them go however far past due, possibly 90 days (and I have like 15 accounts) and then resume paying them in a few months if they don't end up by suing me before then

Or, I can file bankruptcy.

I would like to avoid bankruptcy at all costs because I'm hoping there's a less damaging way out of this, but if I let all 15 of my accounts go past due by 90 or so days, wouldn't it hurt my credit just as much in which case I minus well just file bankruptcy?

I have no idea what to do. I need help. Any input is appreciated.

Welcome to the forums.

Given the complexity of the situation, your best bet would be to seek legal advice regarding your financial situation as it is intertwined with your current legal problems. There is a section within the forum that discussed bankruptcy; you might go there and read up on it, but ultimately getting legal advice is your best option.

Good luck whatever you decide.

RobertEG · ‎11-25-2016

I would begin by contacting your creditors and attempting to work out a modified repayment plan that will avoid delinquency, and give you a short-term period to stabilize...

Anonymous · ‎11-25-2016

I'm sorry for your situation, you could look into a credit counselor (nfcc.org), they are often low or no cost and would probably have much better advice than anyone on here. It sounds backwards but most companies won't work with you until you're already behind, but a counselor would know better what strategy to take. Good luck.