Very seriously contemplating BK 7 but would like some alternative advice

[Anonymous]

Wells Loan $25k CO 1st late 08/18 (showing 14 charge offs on Experian)

PenFed Loan $25k CO 1st late 08/18 (now showing transferred to another lender, collections letter received)

PenFed LOC $25k CO 1st late 08/18 (showing negative for just 2019)

Barclays CC $8k CO 1st late 09/18 (just now getting 1st collections letters, not on credit report)

CapOne CC $6k CO 1st late 08/18 (have filed law suit to collect)

First Premier $1k CO 1st late 09/18 (no contact yet)

I have been trying to rebuild my credit with some secured cards and some small lines of credit.  I am currently unemployed, but could be employed within the month easily.

If I settle with CapOne and the other creditors find out, will they also come after me?  

Should I settle with CapOne and then just wait for the other agencies to contact me, or actively try and negotiate payment plans?

An attorney has already recommended that I file BK.  His opinion was that since I was unemployed it would be a lot easier for me to just dump it all at once and start building from scratch.

Any advice would be much appreciate, thanks in advance.

[despritfreya]

IMO, the attny is correct.

You are or were unemployed, owe $90,000.00 plus accruing interest, and are trying to “rebuild” your credit by incurring more debt? What is wrong with this picture?

Unless you have some ability to come up with nearly $100k or are now employed in a position that earns the nearly 6 figures you need, incurring more debt, especially if you have no ability to pay what you currently owe, is not too smart.

Get rid of everything if you “qualify” and move on with your life. Next time, stick to one or two credit cards and pay each off within the grace period each month.

Des.

[Anonymous]

I agree a BK7 is the way out of your trouble and into a new life. You won't regret the refresh. They are rare in life. 

[Anonymous]

It's not quite a refresh or a restart but it is an amazing way to restructure your budget and change your financial lifestyle some. Live with less stress and gain the ability to save some money.

[Anonymous]

I think I was weighing the difference between the charge offs  being on my record for 7 years (minus the almost 2 years since my first late payment) vs the 10 years of a BK on my report.  I would still be taking a gamble on whether or not any of these other creditors come after me with lawsuits before the statue expires.

[Anonymous]

That's an understandable concern. I don't feel educated enough to address your 7 years for CO vs 10 for BK but i will say that you'll know if you're being sued before your discharge. Creditors get like 60 days to determine if they will come after you or not. When i did it, my lawyer said it's extremely rare that they try to come back to you on CC accounts.

[Anonymous]

That's the thing.  Every creditor has already CO'd the debt with the exception of CapOne, who has just served me with a summons for the $5k.  I have a few collection notices on the other debts, but no actions other than letters.  I am debating riding this out and settling with whoever pushes through with a lawsuit, vs filing for BK.

[FireMedic1]

As you requested. The best thing to do once you start working again is to obtain a lawyer and file. I hardly ever say go file. But in this case without hesitation it would be the best thing to do. You fit the mold to come out of this on top. Dont get any more cards. Same them for after your DC so you can get started again with a fresh start without burning any more lenders. Life threw you a hard ball and it sucks. But as I've been saying on here for years for a decision. Do you want to take years to pay all of the debt back and still be in a hole? Or you could be debt free and have a successful rebuild after filing/DC in less time? Lastly.  Would you be where I'm at in 4 yrs if you didnt file? There's the kicker. My disclaimer below explains why I have my stats in my siggy. Its there for BK'ers/Rebuilders to see what can be accomplished if you play the FICO game correctly. I think you know whats best. Throw up the white flag and start a new life of financial freedom and a new job. I wish you the best of luck on your journey. Keep us updated. Cool?

[Anonymous]

Thanks for that, I'll get started on this first thing Monday.  I really appreciate everyone taking time out from their lives to help me make this hard decision.  I hope everyone has a successful and productive new year!

[Anonymous]

Just a note from my personal experience. I have had three bills “charged off” by the original creditors. All three were picked up by a collection agency and reported as new debt to them.

They can sell that debt and some collection agency can and will come after you for it.