topic Re: File ch 7 or wait it out 3 more years in Rebuilding Your Credit

File ch 7 or wait it out 3 more years

Anonymous — Mon, 16 Feb 2026 22:28:31 GMT

I lost everything 5 years ago and stopped paying all my credit cards and a personal loan almost 4 years ago. I'm unemployed and have no assets. In GA the SOL is 6 years for written contracts, usually including credit cards. It's 4 years for open accounts. It looks like the odds are good of beating collection agencies in court after the 4 year mark, but not original creditors. I have nearly 6 figures in debt between all cards. All but a few are still with the original creditors. The original creditors don't even call me or send letters. One sued me and obtained a judgement a year ago.

I don't plan to be without assets forever, so judgements will eventually have to be paid or discharged. I would rather settle the one judgement against me than file bankruptcy and have that on my record for the next ten years, but if all of them sue me and obtain judgements I will have to file bk7. How likely are they to sue me in the next 2 and a half years, considering my circumstances of having no job for years, living with family, and having no car. The accounts are with most of the big banks and credit unions. I assume if they're smart they know the chance of me filing bankruptcy if they get a judgement is high. Does that mean they won't waste resources trying?

Re: File ch 7 or wait it out 3 more years

pizzadude — Mon, 16 Feb 2026 22:33:54 GMT

@Anonymous wrote:
I lost everything 5 years ago and stopped paying all my credit cards and a personal loan almost 4 years ago. I'm unemployed and have no assets. In GA the SOL is 6 years for written contracts, usually including credit cards. It's 4 years for open accounts. It looks like the odds are good of beating collection agencies in court after the 4 year mark, but not original creditors. I have nearly 6 figures in debt between all cards. All but a few are still with the original creditors. The original creditors don't even call me or send letters. One sued me and obtained a judgement a year ago.

I don't plan to be without assets forever, so judgements will eventually have to be paid or discharged. I would rather settle the one judgement against me than file bankruptcy and have that on my record for the next ten years, but if all of them sue me and obtain judgements I will have to file bk7. How likely are they to sue me in the next 2 and a half years, considering my circumstances of having no job for years, living with family, and having no car. The accounts are with most of the big banks and credit unions.

I don't think that anyone can predict if / when you'll be sued for your remaining debts. Sounds like it is a possibility given that you have already been successfully sued once.

What is the amount of the one judgment that's outstanding and do you even have the funds to pay it ? Also I believe judgments can be renewed in Georgia so there may not be much incentive for the creditor to give you much of a discount if you try and settle for less.

Re: File ch 7 or wait it out 3 more years

Anonymous — Mon, 16 Feb 2026 23:10:08 GMT

I know it's not a science, but there must be people here who've been in a similar situation. The judgement against me is about 6k. I can't pay it now, but in a few years it won't be hard for me to earn enough, I just gave up on life for a few years. I wouldn't pay it now anyway until the SOL runs out on everything else. It's my understanding that they do settle even in states where judgements can last for decades, but even if I have to come up with about 20k in 3 years I would rather do that and have clean credit than to file bankruptcy. If it turned into 75k or 100k in judgements, then I would just as soon file bankruptcy.

Re: File ch 7 or wait it out 3 more years

SUPERSQUID — Tue, 17 Feb 2026 07:50:49 GMT

@Anonymous wrote:
I know it's not a science, but there must be people here who've been in a similar situation. The judgement against me is about 6k. I can't pay it now, but in a few years it won't be hard for me to earn enough, I just gave up on life for a few years. I wouldn't pay it now anyway until the SOL runs out on everything else. It's my understanding that they do settle even in states where judgements can last for decades, but even if I have to come up with about 20k in 3 years I would rather do that and have clean credit than to file bankruptcy. If it turned into 75k or 100k in judgements, then I would just as soon file bankruptcy.

If it were me I would file the chapter 7 bankruptcy.

It may stay on your credit reports for 10 years but many people on this forum have rebuilt nicely regardless of that mark on their record. Right now you are living nervously that you can be sued at any time, bankruptcy is federal and has very strict rules that creditors can't take any action against you.

If a creditor enters a bad mark on your reports it may stay for 7 years and you still we be looking over your shoulder for possible lawsuits.

Bankruptcy is a fresh start.

Re: File ch 7 or wait it out 3 more years

MichaelMyer — Tue, 17 Feb 2026 12:51:53 GMT

File chapter 7. In three years, you'll be well on your way to recovery instead of treading water, waiting for a lawsuit, and still having to deal with all of this in the future anyway.

These laws are there for a reason. Do it now.