Community Leader
Epic Contributor
Posts: 26,021
Registered: ‎03-19-2007
Re: UGH! New FICO is 575. Should I declare BK or other options?
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My advice would be to first consult with a debt consultation specialist. 

BK is a serious step.  You may be able to get a deferred/reduced payment plan with existing creditors.  To just discontinue timely minimum payments is a step that will haunt you for years.  The CR impact will stay for 7 years.  The escalation for monthly delinquencies to a charge-off of the debt is usually followed on its heels by debt collectors, who will further trash your score and hound you to death.  And looming all the while is the threat of legal action.


BK is certainly a way to discharge debt and prevent further damage, but has its own lingering effects.  I would first consult with a pro who can give you alternatives.