Should I or Shouldn't I... CH7

[Anonymous]

Hello, 

This question is not for me, but for me to give my fiance advice, she let me look at her scores (Credit Karma) and right now she is sitting at TU 495 and EQ 496.

She has a total of 4 active accounts, of which, all 4 are charge offs and in collections.

Total Debt is 9k.

My question is, should I advize her to just start working credit score up, or to file CH7 and be done with it and start working on the BK to 700 plan?

Thank you for any advice

[pizza1]

Theres a lot more that goes into filing a BK7, than just saying one should do it. She would need to meet the requirements for one, and the means test, and if her total debt is only $9k...I doubt she meets it.

CK scores are not her true scores anyways...only scores that truly matter are her FICO scores, which she would need to pull a 3-B here on fico and get them.

Does she work? if so, what her annual income?
Does she have assets?

My advice is to get a different game plan together on how to tackle the debt. Can you list out her debt like this:

EX: type of debt, balance, limit, apr

[Anonymous]

I can list it out as soon as credit karma will let me log her back in, it is not letting me or her log in right now.

I do know $7500.00'ish of it is from a lease her and her ex husband skipped on being handled by collection company

The other 3 are $300-$500 range 

One is Credit one $300 being handled by collection company

Torrid Store card $500 being handled by collection company

Last is another store card(?) $400-$500 being handled by collection company

She has no income, as she is not able to work since her brain surgery in november of 2017

As gar as BK, I am 4 months from having my BK being 2 years out from discharge! I have a good lawyer here in northern colorado, I just do not want to send her down that path if it is not 100% necessary.

[Jnbmom]

9K is not enough to file BK on.

[Anonymous]

Definitely should not file... the impact of those items will diminish over time.   They will fully drop off the report 7 years from the last activity date.   Don’t engage with debt collectors, and don’t make payments as that will extend the 7 year timer.   The amounts are too small for the creditor to take to court most likely, and if there is low or no income, its pointless to them to do that anyway.

[Anonymous]

Thank you all, I was thinking along those lines, she only has about 5 years to wait the 7 out.

Is there anything I can have my Fiance (not just a friend ) do to start rebuilding her credit at the moment?

She has nothing positive on her credit at all working to improve her score, except maybe time.