Trying to see if other alternatives

[LS2982]

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@Anonymous wrote:
I had a friend in a similar situation, she was rocking and rolling paying off her debts with a consolidation place, but took a few hard knock, and couldn't keep up with it.

She spoke directly with the CC companies and was able to arrange with them to continue a payment schedule, but at less than what she had been paying. The CC realized it was a better option to work with her during the hard times than to CO the debt and possibly never recoup the loss.

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This is a better option than BK. Your SOL for 7 yrs doing that and your a greater risk for 10 yrs on any approvals you get.

[Anonymous]

You need to weigh the benefits of debt relief from BK and BK being part of your credit report. Once you declare BK you can apply for a secure credit card after 2-3 months. After 2 years your credit score should improve enough for some credit card lenders. Some prime lenders would continue to deny credit cards due to BK.

Generally employers are not allowed to do credit checks but in some jobs there is a requirement for credit check. You might be selected for those jobs in future.

BK in my opinion should be your last resort.

All the above I came to know from fico forum itself.

Also I would add one more thing that currently 2 years after getting secure credit card people are getting unsecure credit cards in some cases. 2 years from now credit condition might change due to regulation or other effects and you might not get unsecure credit for long time.

Still family always comes first.

[blondy250]

I know it sounds obvious but have you cut all unnecessary expenses? Turn off the cable/internet/cell phones (I know for me that's about $300 month), I'd also look for a second job even a part-time job at minimum wage might be enough to get you over the hump, bankruptcy should be your absolute last option. Good luck

[Anonymous]

I'm sorry to hear about this. I filed BK twice and it took 8 years for my score to reach 700's. Both were filed to prevent wage garnishment. One was a 7, the other was a 13 (2003/2005). If you can afford the monthly payments, I would file a Ch 13. Your recovery will be better with a 13. Finish the plan, and the 13 will be deleted in 7 years versus 10 years. I filed a 13 two years after the 7 and the 13 has been paid off and deleted while the Ch 7 remains on my report until this Aug and has still caused me trouble.

I would only file if one of your creditors gets a writ of garnishment against you. Tough it out until when or if that happens. Good luck to you and I hope things get better.

[webhopper]

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@Anonymous wrote:
I'm sorry to hear about this. I filed BK twice and it took 8 years for my score to reach 700's. Both were filed to prevent wage garnishment. One was a 7, the other was a 13 (2003/2005). If you can afford the monthly payments, I would file a Ch 13. Your recovery will be better with a 13. Finish the plan, and the 13 will be deleted in 7 years versus 10 years. I filed a 13 two years after the 7 and the 13 has been paid off and deleted while the Ch 7 remains on my report until this Aug and has still caused me trouble.

I would only file if one of your creditors gets a writ of garnishment against you. Tough it out until when or if that happens. Good luck to you and I hope things get better.

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I think Ch 13 is a good option for people who are trying to do the right thing by paying their debt, but who need the relief from the daily pressure that a BK can offer.

You cannot acquire new debt while doing a Ch 13 plan, but, you can eventually get through and you will get immediate relief from your creditors.  Plus, the court will decide what you can reasonably be expected to pay, while still being able to feed, house, and clothe your family. 

[Anonymous]

You can acquire debt while under a Ch 13 but most times you have to get trustee approval. I was approved for the Orchard Bank card 2 years before discharge and I did not need trustee approval but I did for the auto loan I took out in 2008.

[Anonymous]

MF2012 u r lucky that u got auto loan in 2008 while in chapter 13. Which company financed your vehicle?