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Ch 7 or Wait??


Ch 7 or Wait??

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.



Message 1 of 2
Valued Contributor

Re: Ch 7 or Wait??

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.  

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.
Message 2 of 2
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