File bankruptcy?

[Anonymous]

Hello again.
I've been on my journey since November and have made great progress but my score keeps dropping. I use Experian's Credit Works program to track scores monthly.

Ally Financial (repo in 10/18, sold at auction with deficiency balance of $15,487, will fall off 2025)

American Honda Finance (repo in 2013, paid in full, should fall off 2020)

Chrysler Capital (repo in 10/18, sold at auction with deficiency balance of $13,514, will fall off 2025)

12 student loans from 2011 to 2015, all paid in full with perfect payment histories

FedLoan from 2016 with $1,627 balance, perfect payment history

FedLoan from 2016 with $1,782 balance, perfect payment history

FedLoan from 2013 with $35,575 balance, perfect payment history

SEFCU personal loan opened in November 2018 with perfect payment history, balance is $203

SnapOn Credit from 2015, paid in full with perfect payment history

Virginia Beach Schools Federal Credit Union loan from 2013, paid in full in 2018 but reporting three 30 day lates in 2016

Medical collection from 2016 with balance of $636

Medical collection from 2016 with balance of $656

Medical collection from 2016 with balance of $320

LVNV Collection from reported in 2/2019 from Credit One Bank; paid in full the same month we got the notice

Bank of America credit card charged off in 2014, balance is $3,990 updating as failed to pay monthly

Capital Bank credit card charged off in 11/2018, paid in full (they wouldn't settle or delete)

First Savings credit card charged off in 2013, balance is $328 but has not updated since 2014

Citi credit card opened 11/2018, balance is $150 of $300 limit with perfect payment history

Discover credit card charged off in 2014, balance is $2,116 updating as failed to pay monthly

First Premier credit card from 2013, paid in full and closed in 2015 with perfect payments

Kay Jewelers credit card in 2012, paid in full and closed in 2014 with 1 30 day late payment

Kay Jewelers credit card in 2013, paid in full and closed in 2014 with 1 30 day late payment

SEFCU credit card opened 11/18 with $52 balance of $500 limit, perfect payment history

Old Navy credit card from 2013, perfect payment history and closed in 2014

Dick's Sporting Goods credit card from 2013, charged off balance of $514 updating monthly as failed to pay

Toys-R-Us credit card from 2013, perfect payment history and closed in 2014

Target credit card from 2013, charged off balance of $328, settled for $100 in May but they won't delete it; it has been updated to show settled with $0 balance

25 reported inquiries (1 from 2017, 18 from 2018 and 6 in 2019)

No public records

I make about $42k per year for my family of 8. I talked to a lawyer about filing bankruptcy last winter but was advised against it since we had about $12k in savings after the sale of our mobile home in FL.

We finally found an apartment after 4 months of searching and had to prepay 6mos rent + security deposit due to bad credit. So now we only have about $2,300 left in savings.

Should I reconsider bankruptcy now that I have nothing left? My scores are hovering at 568 (EX), 505 (EQ) and 590 (TU).

I understand it would mean starting over (again) and would mean we cannot buy a house for at least 2 years, which is a huge concern since our kids are in awful schools in the inner city.

What are your thoughts?

[FireMedic1]

I pulled the derogs to add them up. Your at $37,400+. in debt, With a salary of 45K and a family of 8. You would qualify in FL to file. On the other side. The cards that are open would be closed. You do have some positives that would help after DC for the rebuild. The 3 repos will get you when you go to get a car one day. The best thing in your favor now is keeping your student loans on time. The stats you posted as a FL resisdent. You would qualify now. You would pass the means test. For Florida 9 Member Household - $103,696.00. Your nowhere near that. So look around and get a few free co0nsultations in and go from there and start over. But keep those student loans on time more than anything. Good Luck!

[Anonymous]

Lawyer probably told you not to because when you file BK they will want to know whats in your checking & savings and as soon as you tell them you have money in there they will want it to go towards your BK.   

[webhopper]

Can you use the savings to pay off student loans and then wait 6 months to file?

[FireMedic1]

Yes in a way. One rule. If a creditor is not an insider, the trustee can’t undo the transaction unless you paid the creditor more than $600 within 90 days before your bankruptcy filing; however, actual practices can vary depending on the court and trustee. So it's a touch and go situation.