Should I file BK?

[Anonymous]

To make a very long story short my husbnad and I lost our house about a year ago.  So our credit shows a forclosure and now a bunch of charge offs on credit cards.  I have finally organized all of the notices that have been coming and I have about 7K total  and my husbands is about 16K. Now I am torn between filing bk ( which I will have to do a 13 because we make to much now for a 7 since the laws have changed) or paying off these charged off debts.  Keep in mind the house we lost has not been sold yet. I think total we owed 412K and the bank is trying to sell for around 350 at this point.  I think they will eventually come after us for the diff 55K?  not sure where to start. The last year has been very emotionally draing but ready to start doing some clean up now.  Any suggenstions would be great!

[Boswd]

are you in any financial postion to start making payments right now and on your own?   Because Chpt. 13 is basically a court appointed payment plan.

[Anonymous]

Sort of but with I just dont know how much the payment will be. I went and had a consutaion with a bk lawyer but sinc ehtye now have to do a bunch of means tests I wont know how much I have to pay until I make the commitment to the BK. That might of just been that lawyer I could call some others to see if they can give me an est first.  I just dont wnat to get stuck with a court appointed amount of some HUGE figure.

[Anonymous]

If you do a PFD, then maybe you can get them to settle for 50%.

[Boswd]

have these charge off's been sent to collection agency's yet?

[Anonymous]

Just a little bit of a "hope story" for you.

Less than 5 years ago I, all by myself, was in debt, fairly big time.
I owed over $45,000 to different collection agencies, judgments, and creditors etc etc etc....

As of last week the only "debt" I have left is a $3,100 in a subsidized student loan.
That is it. Everything else is paid or settled.

You can do it.

Work with a credit/debt counselor if you need to.
But I really think if you arm yourself with just a bit of knowledge you can do this with out the BK.

You found help here on MyFico, and there are other boards/forums out there too.

Good Luck!!!
There is light at the end of the tunnel, it is just hard to see right now.

[Anonymous]

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lilwilliesmom wrote:

Sort of but with I just dont know how much the payment will be. I went and had a consutaion with a bk lawyer but sinc ehtye now have to do a bunch of means tests I wont know how much I have to pay until I make the commitment to the BK. That might of just been that lawyer I could call some others to see if they can give me an est first.  I just dont wnat to get stuck with a court appointed amount of some HUGE figure.

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What assets will you be trying to save if your house has already been foreclosed??? I wouldn't file for BK 13 unless you had a home or land that you needed to keep...

Just start the debt repayment plan on your own... CCCS may be a way out for you guys. I wouldn't reccomend a CCCS plan normally, but you can recover from CCCS in far fewer years than BK.

My $.02

Rob

[Anonymous]

When we filed bk we out about $70,000 in credit card debt.  We were never late, owned our house, leased vehicles & credit scores still in the 700's even though we owed such a huge amount.  I got scared.  My daughter was sick I wasn't working & I started to have to transfer amounts every month.  We went to talk to a lawyer & didn't think it out & just did it.  We filed ch 13 only had to pay back 20% of the debt which was a huge saving, but thinking back I wouldn't have done it.  My credit is now in the mid to high 500's.  My husbands didn't fall as hard his is in the low to mid 600's.  It is going to take me forever to get where I came from.  We thankfully still own our house and are trying to rebuild our credit, but it is a hard thing to do.  Not only that I wish we would have waited, because our house has enough equity now that it would have covered our debt.  I guess what I am trying to say is take your time if you can and think it out.  I don't know if I will ever have the credit I once did & it is so depressing.  If you can hold on & pay off the debt I would try that way.  No matter what I know its tough when you fall on hard times, so good luck to you.

[Anonymous]

I have similar regrets as Jammy from a BK to finally go off in another year.  The good people of this board have gone through what you are facing, and want to help.  Lots of knowledge and support....

[Anonymous]

The attorney I spoke with siad that after the BK after a while my score would go up since the total balance owed woud be 0.00 or is that just with the chapter 7?