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Decisions, Decisions...Do I file or not?

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Decisions, Decisions...Do I file or not?

This is my first post on myFICO but here goes...

I am a 36 year old single mother of two and I am barely making it. I have LOTS of things in collections, and due to a 4 month period of unemployment late last year I am behind in making my car payments making it near reposession status.. My current TU FICO score is 507. I really have no one to blame but myself for my current situation but wonder what the best course of action would be....1) tough it out and try to contact my creditors to settle and pay bit by bit over the next 3 years, 2) File chapter 13 and possibly have to pay more a month than I am barely affording now (because the things in collections I am not too concerned about and not even paying...lets see food...or pay that old cable bill?? Tough decision...i'm picking food) 4) catch my car note up with the money I would use to pay the attorney for the ch 13/7 or 4) File chapter 7 and get everything wiped out, but have to deal with the the results for ten years?


I would really like to also buy a house, I have an appointment with NACA...but realistically I dont see anyone working with a 507 credit score and late payments on everything except student loans.


Do I go through the process with NACA (which could take up to a year or more with my credit issues) and try to fix things I cant already afford to fix or file Chapter 7 and have it wiped out in 4 months but suffer for ten years AND not be able to get a house for up to 3?

At least Chapter 13 looks better because I would have made payments on my accounts, but what if I end up paying more than what I am now? Right now I pay my car payment of 413 (16,000 owed) and nothing on my collections, doesnt Chapter 13 wrap in extra charges along with what is owed on the debt? So even if I pay 10 cent on the dollar for what I owe I still may end up back on the broke end with no house AND bad credit (But at least i'll still have a fairly new vehicle).


I just need some advice please. Thank you in advance.   

My Scores
2009 Below 500 on all scores
April 2011 585 EX 542 TU 516 EQ
Current Score
Aug 2011 630 EX 574 TU 551 EQ
Oct 2011 644 EX 602 TU 560 EQ
Dec 2011 654 EX 605 TU 590 EQ
Goal Score:
720 mid score by September 2012
60 point jump in 6 months!! Praise GOD
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