Re: To BK or not to BK?!
08-09-2011 01:18 PM
Yes, but give a good long hard look at your debt and understand jow you can solve it.
If unmanigable, think about balance transfers and just paying off the minimum of each card and try to pay off the cards with the lowest balance and work your way up.
Honestly, having utilization rate of 100% and even a late payment or two is way better than filing for bk. A late payment becomes irrelevant in a few years for almost all lenders (including picky ones like Amex) and such high utilization will only affect your score short term. Bk will stay there for a LONG 10 years (yes late payments stay there long but if you talk it out with a lender, it can be removed).
I would look at your lifestyle and work to live below your means just to pay everything off. If you've lost your job then this is a different story atlogether.
Call all your lenders and work out a plan, you'll be surprised how likely they will work with you (especially since you've been on time with all your payments). I would also suggest to stop using your credit cards completely and look around for way to get some of that money back (selling stuff, returing it, etc).
Bk isn't something you want to do at all and should be viewed as a last resort.