Can I do this?....I can do this!

[Brian_Earl_Spilner]

Here's my $0.02.

I was on the verge of bankruptcy 4 years ago after an extended hospital stay that wiped out my savings. I met with a lawyer, but didn't file because I didn't want to be like my parents. I wanted to do the right thing and pay off my debts. Most of my accounts charged off and got sent to collections.  I spent 2 years unable to apply for anything because my credit was so bad, just maintaining the 2 accounts I was able to save, my target and qs1, as well as paying off accounts that defaulted. During my 3rd year, I finally got approved for my secured discover. It wasn't until last year, year 4, that I added all the cards in my signature along with 3 loans. I still owe about 4k in collections. While my rebuild can be considered a success, I'm actually stuck in low limit hell and unable to grow anything. A lot of people claim that things like repos and bankruptcies are huge limiters on your credit, but I've found that to be opposite. Had I filed bankruptcy, I would have limits 3 times as high in less than 9 months. I'd have more approvals. Yeah, I wouldn't have an Amex until I hit 5 years, but it's not growing so it's not really doing anything for me.

If I could go back, I'd file bankruptcy. At this point, I'd have scores in the 700s even with it. Instead, I'm looking at year 5 hopefully being the one where I get traction and finally get some momentum. If I'm lucky, I may break 700 this year. That's if I can get my collections pfd.

Good luck with whatever you choose, but take advice from people with a grain of salt if they don't have personal experience.

[Anonymous]

Well I've never been as far as to declare bk but I have been down a pretty deep rabbit hole with collections and charge offs court fees up the a$$ lost my job ended up with 16k in debt with no job and just a little over a year ago got employed starting 1300 a month (now 3000) I started to rebuild and 14 months later I have 900 left to pay and got my collections taken off my report so yes you can do it your situation is a little more extreme comparatively but it just the will to cut down and stick with it you'll be successful besides you don't wanna burn your Bridges with all those financial company's for the next 5 to 10 years always pay your minimum at least.

[Superk88]

Thanks. I am having a really hard time with it right now. 5 account are deliquent which I can get all that caught up this paycheck hopefully. 

With a baby on the way I have no idea what to do. 

If I do chapter 13 because I'm afraid I won't have any money left over to live

[2GreenThumbs]

The decision to file for BK is a tough one.  In our case, we made too much and we wanted to save our home, so Ch. 13 was the answer.  After our discharge, I qualified for a new car loan with multiple lenders and was able to get credit approvals with lenders I didn't burn.  A few months later, I was getting approvals with lenders I did burn.  The BK stayed on our reports for 7 years after filing.  But everyone's situation is different.  Consult an attorney ASAP.  They can best advise you.

[Anonymous]

Have you tried talking to a bankruptcy attorney?  An attorney who specializes in bankruptcy would be able to lay out for you what to expect, the pros and cons, and give you advice for your situation.   People here can tell you their experiences, but they can't tell you if you should file for bankruptcy.   There is a forum here dedicated to bankruptcy issues, and they might have suggestions on how to ask creditors to defer or lower payments while you recover your financial footing.  

I know over on the Mortgage Board you were talking about the goal of buying a house, and that goal would be affected no matter what you decide.  

But you do need some solid legal advice and I'd suggest that first.   You should be able to find some low-cost or deferred cost, or even free services in your community.  

Best of luck, I'm pulling for you and your new family.  (and don't forget there are local community services available for expectant families that can help as well.  Take advantage of them.) 

[McNugget]

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@Brian_Earl_Spilner wrote:

Here's my $0.02.

I was on the verge of bankruptcy 4 years ago after an extended hospital stay that wiped out my savings. I met with a lawyer, but didn't file because I didn't want to be like my parents. I wanted to do the right thing and pay off my debts. Most of my accounts charged off and got sent to collections.  I spent 2 years unable to apply for anything because my credit was so bad, just maintaining the 2 accounts I was able to save, my target and qs1, as well as paying off accounts that defaulted. During my 3rd year, I finally got approved for my secured discover. It wasn't until last year, year 4, that I added all the cards in my signature along with 3 loans. I still owe about 4k in collections. While my rebuild can be considered a success, I'm actually stuck in low limit hell and unable to grow anything. A lot of people claim that things like repos and bankruptcies are huge limiters on your credit, but I've found that to be opposite. Had I filed bankruptcy, I would have limits 3 times as high in less than 9 months. I'd have more approvals. Yeah, I wouldn't have an Amex until I hit 5 years, but it's not growing so it's not really doing anything for me.

If I could go back, I'd file bankruptcy. At this point, I'd have scores in the 700s even with it. Instead, I'm looking at year 5 hopefully being the one where I get traction and finally get some momentum. If I'm lucky, I may break 700 this year. That's if I can get my collections pfd.

Good luck with whatever you choose, but take advice from people with a grain of salt if they don't have personal experience.

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So much what @Brian_Earl_Spilner said.  The slow paying off of my debts is hurting my score far much more than a BK ever would have.  Same low-limit hell, too.  

[Anonymous]

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@Anonymous wrote:

Have you tried talking to a bankruptcy attorney?  An attorney who specializes in bankruptcy would be able to lay out for you what to expect, the pros and cons, and give you advice for your situation.   People here can tell you their experiences, but they can't tell you if you should file for bankruptcy.   There is a forum here dedicated to bankruptcy issues, and they might have suggestions on how to ask creditors to defer or lower payments while you recover your financial footing.  

I know over on the Mortgage Board you were talking about the goal of buying a house, and that goal would be affected no matter what you decide.  

But you do need some solid legal advice and I'd suggest that first.   You should be able to find some low-cost or deferred cost, or even free services in your community.  

Best of luck, I'm pulling for you and your new family.  (and don't forget there are local community services available for expectant families that can help as well.  Take advantage of them.) 

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^^^ agree with this

I actually think I'd rather have a BK on my credit than a repo.

Also never automatically think CH 13 is your only option until you've talked to a FEW lawyers.