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Hi Everyone
This past weekend I prematurely decided I would file BK after a discussion with a BOA rep regarding an overdue cc account. Basically they threatened judgement. I've worked at home doing freelance work successfully for over 5 years and then this past November, my income took a sharp nosedive. All my bills were behind until I brought most of them current with my tax refund. The last payments they've received (Feb 16). My debt totals to about $25k. This includes 4 charged off accts (not yet in collections), 2 collections accounts, and 3 accounts that are still open. My income is still low but I have a contingent job offer that would possibly bring me above water.
The main problems: (1) Most of the debt is less than a year old, (2) I've filed BK before (discharged '03), (3) My income is still too low to support these payments AND essential daily living. I want to avoid a judgement or garnishment at all costs. A judgement was the reason I file BK before and at the time by debt was much less than it is now. How long do they usually wait to file judgements?
Do you think it's a good possibility to "settle" some of these accounts (already getting offers) and try to rebuild my credit from there? I'm in the 400s FAKO. I probably won't be able to start making any type of payments until August.
Or do i wait until the debt ages and file BK later? I'm just afraid of judgements and garnishments. I live in FL, in case it matters.
Thanks
The ultimate decision is up to you. If you are afraid of your creditors taking you to court and obtaining wage garnishment then yes I would go ahead and file. I kept putting my bk off until I received a judgement in the mail from one of my creditors and then I got the ball rolling with my bk.