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Should I file for Bankruptcy?

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ghawdex
Valued Member

Should I file for Bankruptcy?

So let's begin, I am doing this for my brother btw.

 

Collections

 

Protofolio Recovery: Assigned in 2018 - $7,364 - Capital One

 

Negative Accounts (Not sure why these don't show on his credit report as collections?)

 

  • Nelnet (Shows twice on all reports): Paid account/was delinquent 180 days or more past due date - Paid Off

  • Sheffield Finicial: Charged off as bad debt (Although he is still making payments, to Sheffield)

    Balance:$4,000

  • Chase: Account delinquent 90 days past due date -

    Balance:$15,000

  • Chase: Charged off as bad debt (Doesn't show as collections)

    Balance: $2571

  • Citi Card: 120 days past due

    Balance: $800

  • TD Bank: Charged off as bad debt (Doesn't show as collections)

    Balance: $11,500

  • Chase: Charged off as bad debt

    Balance: $5,800

  • Discover - 90 days past due

    Balance:$10,300

  • American Express: 60 days past due (Paid off, and they closed his account because of the collections and other lates)

So this is what his report pretty much looks like..

What I had try doing already for him is talking as him to the 60-90 day accounts that are past due, but none have been helpful at all.

I asked about closing the accounts and taking away all the interest and late fees and just do a payment plan. None were having it.

So, I don't know what else he can do. The only thing I could think of is he lets all accounts go into collections, and offers a settlement with a Pay For Delete.

I'm not going to get into as to why he is in this position right now, but he went through a lot of issues from 2017-2018, from health and divorce.

Just looking for some advice on the best possible route.

He is now back working, but not making much.

He had always been good with his money and cards, but **bleep** just hit the fan.

Would letting the accounts go into collections and doing a PFD be the best option?

My other option was this... I would take out a personal LOC and pay the debts off, just to give him a head start.

I probably won't see most of the money, but that is not my concerned.

He has overcome everything else, and this is his major issue..

 

The scores

  • Equifax 495
  • Transunion 506
  • Experian 496

 

It seems like his best options would be 

 

1) File for bankruptcy

2) Let everything go into collections, then negoiate pay off amounts with pay for delete

Message 1 of 3
2 REPLIES 2
FireMedic1
Community Leader
Mega Contributor

Re: Should I file for Bankruptcy?

Well theres roughly over 40 grand in debts. No one will say yes file BK here. Its up to the person. If BK is the chosen option. Those 120 lates will always be there after BK. 1 120 late is almost as bad as BK. You cant say all collections will PFD. Best advice would be talk to a lawyer. If he was making 150k a yr. It could be doable in closing all the accounts and set up payment plans. Or just wipe it all away and get a fresh start. I'll leave it at that.


Message 2 of 3
Anonymous
Not applicable

Re: Should I file for Bankruptcy?

I would have him talk to an attorney for a free consultation. For me personally I think filing for bk was a smart decision. I've made a lot of dumb mistakes in the past, including getting a loan to pay off debts, just to sink into debt even more. There is life after BK it will take some time though. I know you mentioned taking out a loan to help him pay these, that is up to you, but my opinion is that bankruptcy is offered for a reason for situations like these, i'm sure he has tried his best to pay debts but life happens.


Message 3 of 3
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