Ch. 7 or Rebuild

[tqua]

Hi Everyone! 

I've been lurking on these forums on and off for a few years now, and I am finally ready to take action towards improving my credit. About me: I'm 23 years old and I'm currently working a full time job making around 50k per year. My credit issues began when I was 18, naive, and made some pretty bad credit decisions. I've basically stayed away from credit the past year and my scores are terribly low. 

My Credit Profile:

Current Scores from CreditCheckTotal.com: EX-530, EQ-519, TU-532 as of 9/8/17.

Negatives:

Kia Motors Repossession Charge Off: $13,346. DOFD 9/1/13 (Out of Statute of Limitations) 

Santander Consumer Charge Off: $5,076. DOFD 6/1/16 (Car was totaled and I didn't have Gap insurance. Deficiency balance betweenwhat car is wortha nd what car sold for)

Synchrony 76 Charge Off: $402. DOFD 12/2012 (Charged off 76 card. Out of SOL)

Enhanced Recover Collection: $2,078. DOFD 6/13 (Balance due for terminated Sprint Service)

Ad Astra Recovery Collection: $309. DOFD 6/2015 (Collection for unpaid payday loan)

Sentry Credit Collection: $580. DOFD unknown (Collection from Nordstrom account that I'm an AU on)

Portfolio Recovery Collection: $618 DOFD around 12/12 (Unpaid Amazon Collection)

Jefferson Capital Collection: $198. DOFD unknown (Collection from Unpaid Finger hut account)

Midwest Recovery Collection: $197 DOFD unknown (Collection from unpaid Six Flags membership)

Capital One Account: $300 (Settled in Full)

Citi Credit Card: $500 (Settled in Full)

Kay Jewelers: $34. DOFD 2/13 (Closed 60 days past due Paid in full) 

A couple of medical collections that aren't reporting but I keep receiving notices for them, around $1100

*Original TL of all these accounts are still reporting with a number of lates*

TOTAL NEGATIVE DEBT (Not including student loan & Medical Debt): $22804

Positive (or not):

Fed Student Loan: $3,151. (No missed payments since 8/29/11)

A couple of paid off installment loans

I'm at a crossroads. I don't know if I should file Ch. 7 and clear these balances and start building a more positive history, or if I should work to pay these balances down over the next couple of years. I really would like to purchase a home by the age of 30. I know I'd be able rebuild my credit after bankruptcy, but I'm not sure if I wan't it on my record 10 years, when a lot of my baddies will be falling off in the next 4-7. I don't currently have a car, and would really like to purchase a reliable vehicle within the next couple of years. I also don't have any credit cards, I've been denied for all the secured and unsecured cards I've applied for. I'm just lost and could really use you guys' expertise!

Thanks so much! If you have any questions, please ask!  

[Anonymous]

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Negatives:

Kia Motors Repossession Charge Off: $13,346. DOFD 9/1/13 (Out of Statute of Limitations) 

Santander Consumer Charge Off: $5,076. DOFD 6/1/16 (Car was totaled and I didn't have Gap insurance. Deficiency balance betweenwhat car is wortha nd what car sold for)

Synchrony 76 Charge Off: $402. DOFD 12/2012 (Charged off 76 card. Out of SOL)

Enhanced Recover Collection: $2,078. DOFD 6/13 (Balance due for terminated Sprint Service)

Ad Astra Recovery Collection: $309. DOFD 6/2015 (Collection for unpaid payday loan)

Sentry Credit Collection: $580. DOFD unknown (Collection from Nordstrom account that I'm an AU on)

Portfolio Recovery Collection: $618 DOFD around 12/12 (Unpaid Amazon Collection)

Jefferson Capital Collection: $198. DOFD unknown (Collection from Unpaid Finger hut account)

Midwest Recovery Collection: $197 DOFD unknown (Collection from unpaid Six Flags membership)

Capital One Account: $300 (Settled in Full)

Citi Credit Card: $500 (Settled in Full)

Kay Jewelers: $34. DOFD 2/13 (Closed 60 days past due Paid in full) 

A couple of medical collections that aren't reporting but I keep receiving notices for them, around $1100

*Original TL of all these accounts are still reporting with a number of lates*

TOTAL NEGATIVE DEBT (Not including student loan & Medical Debt): $22804

Positive (or not):

Fed Student Loan: $3,151. (No missed payments since 8/29/11)

A couple of paid off installment loans

I'm at a crossroads. I don't know if I should file Ch. 7 and clear these balances and start building a more positive history, or if I should work to pay these balances down over the next couple of years. I really would like to purchase a home by the age of 30. I know I'd be able rebuild my credit after bankruptcy, but I'm not sure if I wan't it on my record 10 years, when a lot of my baddies will be falling off in the next 4-7. I don't currently have a car, and would really like to purchase a reliable vehicle within the next couple of years. I also don't have any credit cards, I've been denied for all the secured and unsecured cards I've applied for. I'm just lost and could really use you guys' expertise!

Thanks so much! If you have any questions, please ask!  

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What are you monthly expenses?

How much do you bring home after taxes?

Can you list and itemize your bills with how much you pay (cable, cell, groceries, gas, etc)

[tqua]

After taxes I bring home around $2800.

Expenses:

Rent: $980

Utilities/Internet: $140

Phone Bill: $150, will be reduced to around $115 soon

Renter's insurance: $6

Metro: $100

Groceries: $300

Student Loan: $50

Netflix/Spotify: $15

Home items: $75

Savings: $200

Total: $1916

Remainder: $884 (Not including eating out/ discretionary spending, which I can budget to cut out.

[Anonymous]

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@tqua wrote:

Hi Everyone! 

I've been lurking on these forums on and off for a few years now, and I am finally ready to take action towards improving my credit. About me: I'm 23 years old and I'm currently working a full time job making around 50k per year. My credit issues began when I was 18, naive, and made some pretty bad credit decisions. I've basically stayed away from credit the past year and my scores are terribly low. 

My Credit Profile:

Current Scores from CreditCheckTotal.com: EX-530, EQ-519, TU-532 as of 9/8/17.

Negatives:

Kia Motors Repossession Charge Off: $13,346. DOFD 9/1/13 (Out of Statute of Limitations) 

Santander Consumer Charge Off: $5,076. DOFD 6/1/16 (Car was totaled and I didn't have Gap insurance. Deficiency balance betweenwhat car is wortha nd what car sold for)

Synchrony 76 Charge Off: $402. DOFD 12/2012 (Charged off 76 card. Out of SOL)

Enhanced Recover Collection: $2,078. DOFD 6/13 (Balance due for terminated Sprint Service)

Ad Astra Recovery Collection: $309. DOFD 6/2015 (Collection for unpaid payday loan)

Sentry Credit Collection: $580. DOFD unknown (Collection from Nordstrom account that I'm an AU on)

Portfolio Recovery Collection: $618 DOFD around 12/12 (Unpaid Amazon Collection)

Jefferson Capital Collection: $198. DOFD unknown (Collection from Unpaid Finger hut account)

Midwest Recovery Collection: $197 DOFD unknown (Collection from unpaid Six Flags membership)

Capital One Account: $300 (Settled in Full)

Citi Credit Card: $500 (Settled in Full)

Kay Jewelers: $34. DOFD 2/13 (Closed 60 days past due Paid in full) 

A couple of medical collections that aren't reporting but I keep receiving notices for them, around $1100

*Original TL of all these accounts are still reporting with a number of lates*

TOTAL NEGATIVE DEBT (Not including student loan & Medical Debt): $22804

Positive (or not):

Fed Student Loan: $3,151. (No missed payments since 8/29/11)

A couple of paid off installment loans

I'm at a crossroads. I don't know if I should file Ch. 7 and clear these balances and start building a more positive history, or if I should work to pay these balances down over the next couple of years. I really would like to purchase a home by the age of 30. I know I'd be able rebuild my credit after bankruptcy, but I'm not sure if I wan't it on my record 10 years, when a lot of my baddies will be falling off in the next 4-7. I don't currently have a car, and would really like to purchase a reliable vehicle within the next couple of years. I also don't have any credit cards, I've been denied for all the secured and unsecured cards I've applied for. I'm just lost and could really use you guys' expertise!

Thanks so much! If you have any questions, please ask!  

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Ummm.    No on the BK option. Yes on the rebuild. Over half your debt is uncollectible, past SOL debt. With over 800 a month surplus income, there is no reason you could not have everything paid within 12-18 months. I would suggest paying the medical debt first, in order to keep it off you reports (unless its old and past SOL). Keep ignoring it and it will get reported. Get a repayment deal in place with Santander, that one is big enough to sue for. Attack the rest of them, newest first, offering them payment for removing it from your reports (PFD). Tell each one that you have some cash available to settle old debts and the first people to get paid will be those agreeing to delete their reports. If they say no, then just say ok, you're now at the bottom of the list. A lot of people have gotten good results with that negotiation strategy.

Most of this will be gone in 3-4 years, and ALL of it will be gone by the time you are thirty. Even if none of them agree to PFD.

[Anonymous]

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@tqua wrote:

Hi Everyone! 

I also don't have any credit cards, I've been denied for all the secured and unsecured cards I've applied for. I'm just lost and could really use you guys' expertise!

Thanks so much! If you have any questions, please ask!  

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For the positive side of the credit equation, do the following.

Open an account with a couple of the following insitutions:

State Department FCU

NASA FCU

DCU

PenFed

Alliant CU.

These places will let you open secured cards and secure personal loans, often with no credit check at all. Open two $300 secured cards. Let one card carry a $10 balance each month, and keep the other one paid in full before the statement closes. Your student loans will serve for your installment loan requirement. After six months of using the cards this way, try applying for a Capital One card.

[tqua]

Thanks for your input NormanFH! I did feel that Ch. 7 was a little excessive for my credit profile! Good news is I just applied for Capital One Secured and I was approved with a $200 minimum deposit! I'm thinking of starting my deposit at $300 with them. I was denied for it 3 months ago and today, something told me to apply!

How do you recommend I proceed with the Kia Repo that's out of SOL? I think the reason Kia didn't seek judgement is because they've been in the middle of a improper repossession class action lawsuit for the past couple of years.

Also do you think an arrangement of $50 per month with Santdander will be suitable until I get my tax refund in March/April?

Thank you so much!

[Anonymous]

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@tqua wrote:

Thanks for your input NormanFH! I did feel that Ch. 7 was a little excessive for my credit profile! Good news is I just applied for Capital One Secured and I was approved with a $200 minimum deposit! I'm thinking of starting my deposit at $300 with them. I was denied for it 3 months ago and today, something told me to apply!

How do you recommend I proceed with the Kia Repo that's out of SOL? I think the reason Kia didn't seek judgement is because they've been in the middle of a improper repossession class action lawsuit for the past couple of years.

Also do you think an arrangement of $50 per month with Santdander will be suitable until I get my tax refund in March/April?

Thank you so much!

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I would just let the Kia debt disappear on its own.

I would probably throw a bit more at SAntander than that, but they may bite on that, if they think there will be a big payment available shortly.

[Anonymous]

Damage is already done, ch 7 will do you no good. Take care of the accounts you have right now. The negatives last 7 years bk will start from new date and can last 10 years.

[Anonymous]

I would rebuild and start if I could paying one small charge off each month or every other month and work your way up.  I would see if they PFD.