UGH! New FICO is 575. Should I declare BK or other options?[ Edited ]
01-29-2012 05:03 PM - edited 01-29-2012 05:06 PM
So, back in October of 2011, I signed up for MyFico's quarterly monitoring and FICO score, well yesterday I got an email that my newest TransUnion report and score were available.......My FICO score went from 597 in 10/2011 to 575, all because Toyota Motor Credit JUST reported me being past due from WAY back in April of 2011. Everytime I pay them, I am essentially a month behind because of last Spring, but my credit report kept showing "green" paid tabs for each month. Why in the world would they just report it now? So, to make a long story short, my score dropped 25 points. Everything else is fine, my credit cards are paid on time and it shows no collections.
Here's my question though, my situation has become quite dire where the person I am living with is on the verge of eviction because I can't really contribute to the rent. I feel personally responsible for this mess. My total living expenses(car loan, student loans, 8 credit cards, food, gas, utlities) is pretty much exactly what I make a month from my full-time job, so I have nothing to show for afterwards. My car loan still has 4 years left(was a 72 month loan), and the ONLY way I could split the rent with them is if I just decided to stop paying my 8 cards, which all together come to about $400/month.
If someone had absolutely no choice but to let their credit get ruined, between bankruptcy(I think I read recently that chapter 13 would be best suited to my needs) and not paying my credit cards anymore, but just letting my cards get charged off as bad debt, which option would the better road?(Obviously I know that neither option has any good whatsoever in it, but sometimes you have to do what you have to do). And as far as anyone thinking "Why doesn't he just looking for a second job?" I have been submitting resumes for weeks and weeks now, like most Americans are doing.
Thanks for anything advice.