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Getting Ready

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Valued Contributor

Getting Ready

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 Express3K
Barclay4.5K
BMW (Repo Business)4.5K
Capital One8K
CelticBank (Kabbage)10K
Citi3.5K
Comenity (Multiple Cards)15K
CreditFirst (Firestone)$350
DCU1.5K
Discover3K
DSNB (Macys)1.5K
NFCU18K
Santander6K
SYNCHRONY (Multiple Accounts)15K
TDRCS (Target and Nordstrom)4K
Webbank (Avant)14K






Family Member made me an AU on: 2008 Sears MC $2,001, 2016 SEARS Store Card $2,001, 2011 Synchrony Home $5,500 , 2003 FNBO Visa $9,900, 2008 Macys Amex $1900, 2008 Kohls $2,000, 2008 JC Penny $4,500, 2016 TJX Mastercard $1,500, 2019 SDFCU PowerCash Visa $10,000, 2018 AAdvantage Aviator MC $5,600, 2018 HSN $4,500, and 2016 Local Credit Union Visa $5,000. Waiting on them to all report over the next month... Only Kohls is reporting so far... WITH AGE. They use AZEO method.

Member of:
Andrews FCU (Share), PENFED CU (Checking/Share), SDFCU (Share), Alliant CU (Checking/Share), NASA FCU (Share), NWFCU (Checking/Share), Ally Bank (Checking/Savings), BofA (Checking/Share), Navigant CU (Share), Greenwood CU (Share), Elements Financial CU (Share), Ocean State CU (Share), SDFCU (Share), Wells Fargo (Checking), RI Credit Union (Share), CashApp, PayPal Premier (for free direct deposit access with cash card), Paypal Business - Grandfathered 1.5% Cash Back on Biz Debit), Apple Pay Cash, and Venmo.

I WANT to join: Hanscom FCU (For the 2 day early direct deposit).


Burned:
DCU, NFCU, Comenity, Synchrony, Barclays, Discover, Amex, Webbank (Avant), Santander, Citi (Shell), DSNB (Macys), TDRCS (Target+Nordstrom), Capital One (Personal & Business, Kohls, and GM), CreditFirst(Firestone)
Message 1 of 6
5 REPLIES 5
New Contributor

Re: Getting Ready

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?

Message 2 of 6
Senior Contributor

Re: Getting Ready

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.


Fico 08: 720/721/719 TU/EX/EQ
Message 3 of 6
Senior Contributor

Re: Getting Ready


@nu-stat 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?


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





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 4 of 6
Regular Contributor

Re: Getting Ready

I know it's rare but ask your attorney about the special proceedings for getting student loans included in BK. Cant hurt to ask.
Message 5 of 6
Valued Contributor

Re: Getting Ready

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.






Family Member made me an AU on: 2008 Sears MC $2,001, 2016 SEARS Store Card $2,001, 2011 Synchrony Home $5,500 , 2003 FNBO Visa $9,900, 2008 Macys Amex $1900, 2008 Kohls $2,000, 2008 JC Penny $4,500, 2016 TJX Mastercard $1,500, 2019 SDFCU PowerCash Visa $10,000, 2018 AAdvantage Aviator MC $5,600, 2018 HSN $4,500, and 2016 Local Credit Union Visa $5,000. Waiting on them to all report over the next month... Only Kohls is reporting so far... WITH AGE. They use AZEO method.

Member of:
Andrews FCU (Share), PENFED CU (Checking/Share), SDFCU (Share), Alliant CU (Checking/Share), NASA FCU (Share), NWFCU (Checking/Share), Ally Bank (Checking/Savings), BofA (Checking/Share), Navigant CU (Share), Greenwood CU (Share), Elements Financial CU (Share), Ocean State CU (Share), SDFCU (Share), Wells Fargo (Checking), RI Credit Union (Share), CashApp, PayPal Premier (for free direct deposit access with cash card), Paypal Business - Grandfathered 1.5% Cash Back on Biz Debit), Apple Pay Cash, and Venmo.

I WANT to join: Hanscom FCU (For the 2 day early direct deposit).


Burned:
DCU, NFCU, Comenity, Synchrony, Barclays, Discover, Amex, Webbank (Avant), Santander, Citi (Shell), DSNB (Macys), TDRCS (Target+Nordstrom), Capital One (Personal & Business, Kohls, and GM), CreditFirst(Firestone)
Message 6 of 6
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