Getting Ready

[MyDataMyChoice]

I have over 112K in debt - issuers and balances that charged off below.  Some have sold to Midland or Portfolio or other JDB of the like.

Ive received a few summons now for business Personal Guarantees (not on the list) that will force me to do the BK. 

I have seen a lawyer and they highly suggest BK.    I qual for a Ch7.

I could settle most of this debt for less than 40% (as ive received letters from almost all lenders offering this multiple times).

Some debt personal - some business.    

I will still have 120K in student loan debt after all said and done.    I will also have a $500 Vehicle Payment as my job requires me to travel extensivley and I need a reliable 4X4 vehicle (Snow).      I WILL NOT reaffirm the vehicle however - its with a small credit union that I have nothing else with.

I have the following as checking accounts - BOA, PENFED, Alliant CU, NWFCU, Ally Bank, Small Town Credit Union, (no money in any of them as im living paycheck to paycheck  - but i'm not sure if any will close with a bankrucpy)

American Express	3K
Barclay	4.5K
BMW (Repo Business)	4.5K
Capital One	8K
CelticBank (Kabbage)	10K
Citi	3.5K
Comenity (Multiple Cards)	15K
CreditFirst (Firestone)	$350
DCU	1.5K
Discover	3K
DSNB (Macys)	1.5K
NFCU	18K
Santander	6K
SYNCHRONY (Multiple Accounts)	15K
TDRCS (Target and Nordstrom)	4K
Webbank (Avant)	14K

[Anonymous]

I did file and await discharge in a month and a half but wonder if I should try for secured cards now and if so which might approve while prior to discharge?

[DaveInAZ]

Well, two comments:

"I could settle most of this debt for less than 40% (as ive received letters from almost all lenders offering this multiple times)."

- Not recommended. If you settle for 40% or less they will report a negative item on your credit report, with comments of "charge off" or "settlement for less than amount owed". The only benefit is that those negative items will remain on your credit report for only 7 years while a BK remains for 10 years. But I don't think 3 years is worth paying off 40% of the debt when a BK will discharge 100% of it

" I WILL NOT reaffirm the vehicle however - its with a small credit union that I have nothing else with."

- Check your loan documents - many credit unions insert a clause that just filing BK makes you in default, so even if you've never been late they can repo if you don't reaffirm.

Well OK, one more comment: $120k in student loan debt? Wow, glad I graduated long ago when you could get through college without loans you'll be paying off for at least half your working career.

Not fun worrying about this during the holidays, all the best to you.

[FireMedic1]

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@Anonymous wrote:

I did file and await discharge in a month and a half but wonder if I should try for secured cards now and if so which might approve while prior to discharge?

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You can start a new thread and many of us will help you. Dont want to hijack the OP's question.

[Anonymous]

I know it's rare but ask your attorney about the special proceedings for getting student loans included in BK. Cant hurt to ask.

[MyDataMyChoice]

Thank you all.

Anyone know about the checking accounts - those I have any known to close due to BK?


I did ask about the student loans - looks like it has a 2% chance of being discharged and would cost at least 5k in lawyer fees for something that is not guaranteed.
I plan on paying them off aggressively over the next 5 years.