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400 Credit Score - Considering Bankruptcy! HELP!!

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Anonymous
Not applicable

400 Credit Score - Considering Bankruptcy! HELP!!

I've made very poor financial and credit decisions fresh out of high school, never learned to live on a budget, moved away from home straight out of college and started working in high-pressure 100% commission sales jobs for the past 5 years. 100% commission didn't help considering the fact that I am not financially disciplined nor learned how to budget effectively. Now that I am 28 and realizing that poor credit has become roadblocks in getting a car, renting apartments, closed off options in tough financial times and definitely when I would like to start a family and purchase a home within the next 5 years. I've been ignoring all student loans and credit reports for the past 10 years but cannot allow this to hang over my head anymore. 

Please help with any/all advice on whether or not it makes sense to try and repair my credit or file for Chapter 7 BKO to start a new slate + rebuild now that I am more financially knowledgeable and responsible?

 

Equifax: 464 TransUnion: 454 Experian: 456

Signed up for the 3B and started a monthly subscription to monitor my credit with myFICO 

1 Open Account with 30 day late (for my car)

6 Charge off where credit grantors wrote off the debt as a loss

19 Negative item reported

15 Student Loan accounts all in default

10 Collection accounts

 

 

Student Loan Companies: GLHEGC, US Dept of Edu., SLM Financial Group (which I'm sure was previously Sallie Mae)
Remarts on credit report: Student Loan Permanently Assigned to Government, Account transferred to another office, Account seriously past due date/account assigned to attorney, collection agency, or credit grantor's public collection department. 

 

Total Student Loans Amount Owed: $108,897

 

Total Accounts charged off in collections: $3875

 

Medical Bills from no health insurance with the 100% commission jobs: $10,330

 

Judgement from Midland Funding: $735

 

Please help in any way possible!!! 

 

28 REPLIES 28
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

Well, you definitely came to the right place!

 

Start with your student loans. They will never go away, and bankruptcy does not discharge government debt. The good news is student loans can be rehabbed, deleting all negative payment history. Who is your student loan servicer? This step will take 3-9 months depending on the program, but it is VERY VERY worth it. These payments can be as little as $5 a month. Next, talk to your auto lender, and see if they can remove that 30-day late for you. Depending on who your lender is, they may or may not, but it is worth a shot. Is this your first offense with this lender? Let them know you are REALLY trying to turn over a new leaf and be VERY nice. These 2 steps will make a big difference in your current picture, and cost very little.

 

Without knowing the rest of the picture, such as your collections balances (are they medical, utilities, random?), what the charge-offs are for, or any other details, we can't really give much more advise. I can say that unless you owe a ton of money, bankruptcy would be more damaging than beneficial. It really just depends.


@Anonymous wrote:

I've made very poor financial and credit decisions fresh out of high school, never learned to live on a budget, moved away from home straight out of college and started working in high-pressure 100% commission sales jobs for the past 5 years. 100% commission didn't help considering the fact that I am not financially disciplined nor learned how to budget effectively. Now that I am 28 and realizing that poor credit has become roadblocks in getting a car, renting apartments, closed off options in tough financial times and definitely when I would like to start a family and purchase a home within the next 5 years. I've been ignoring all student loans and credit reports for the past 10 years but cannot allow this to hang over my head anymore. 

Please help with any/all advice on whether or not it makes sense to try and repair my credit or file for Chapter 7 BKO to start a new slate + rebuild now that I am more financially knowledgeable and responsible?

 

Equifax: 464 TransUnion: 454 Experian: 456

Signed up for the 3B and started a monthly subscription to monitor my credit with myFICO 

1 Open Account with 30 day late (for my car) 

6 Charge off where credit grantors wrote off the debt as a loss

19 Negative item reported

15 Student Loan accounts all in default

10 Collection accounts

1 $750 judgement from one of the debt collectors

 

Please help in any way possible!!! 

 


 

Message 2 of 29
Pway
Valued Contributor

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

Are these accounts past the SOL (Statue of Limitations) in your state? Do you have the funds to take care of these accounts if they are not past the SOL?  However, you will get mixed reviews when it comes to filing bk.  It is not an easy choice but it is a choice that we must make to get back on track.  I say file and start all over, while getting your student loans in order.

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.
Message 3 of 29
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

Oh wow! This Forum really does help- I wasn't expecting any responses and quite honestly, gave up on all hopes for myself so I really appreciate your reply!!!

 

I will take that advice to rehab my student loans immediately- do you have any suggestions on how to start? Is there a company that can consolidate them all & help me with the rehabbing at the same time? I was under the impression that you are only allowed to do this once during the lifetime of the loan and without a stable source of income, I didn't want to risk missing a payment and using up my one-time chance back when I was 100% commission. Now that I have a good salaried, secure position; I don't know where to start. 

Student Loan Companies: GLHEGC, US Dept of Edu., SLM Financial Group (which I'm sure was previously Sallie Mae)
Comments: Student Loan Permanently Assigned to Government, Account transferred to another office, Account seriously past due date/account assigned to attorney, collection agency, or credit grantor's public collection department. 

Total Student Loans Amount Owed: $108,897

Total Accounts charged off in collections: $3875

Medical Bills from no health insurance with the 100% commission jobs: $10,330

Judgement from Midland Funding: $735

 

I've already tried to call and ask for the lates removed on my car note but they refused to help since my car was a reposessed load re-instatement. I paid over $4k in fees and fines late 2015 to get my car out of repossession.  I am still trying to catch up on the remainder of that and can only afford the payment each other so there is always a balance that I'm carrying- which leads to the 30day late every month. 

 

I'm in bad shape.. 

 

Message 4 of 29
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

What does SQL mean? How does that impact my scores or debt? 

 

I am just now beginning to get steady pay with a salaried job. I am still in the hole with bills, car, rent, living expenses; let alone have funds to take care of accounts pas the SQL...

 

If I chose to file BKO- I was told to hire a lawyer to do this. Lawyer fees are $2000 before they would be willing to file any paperwork. If I don't have money to repay my bills, how do I have money to pay for a lawyer to file for BKO?? 

Message 5 of 29
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

Don't worry you have great resources available to you here! If you have 6 months to a year to wait, I would suggest NOT filing bankruptcy. Your debt is mostly medical and government debt, which is the most straightforward to deal with.

 

1. Dispute any old addresses, phone numbers, name variations etc. with all 3 bureaus. They won't remove addresses associated to current collections accounts, but having this clean as possible will help later.

 

2. Whatever you do, when it comes to collections, don't acknowledge that you owe the debt in writing or via phone! You lose all leverage once you acknowledge the debt.

 

3. Student loans - Contact each lender (or collection agency) that has your loans and ask for a rehab with IBR (income-based repayment). They'll ask you to fill out a form about your income, and you will have to make payments for 9 out of 10 months. If you are going to be late, call them and let them know. After rehab you are going to have a hell of a payment, so I would pay more than required to get it down while the interest is low. Also, read this - http://www.studentloanborrowerassistance.org/collections/federal-loans/getting-out-of-default-federa...

 

4. Medical bills - google the HIPAA process. It's a pain in the butt but it works. 

 

5. Give us some more info on the collections and judgements. It will be easier to help that way. When is the DOFD? Have you made payments? What is the debt for?

@Anonymous wrote:

Oh wow! This Forum really does help- I wasn't expecting any responses and quite honestly, gave up on all hopes for myself so I really appreciate your reply!!!

 

I will take that advice to rehab my student loans immediately- do you have any suggestions on how to start? Is there a company that can consolidate them all & help me with the rehabbing at the same time? I was under the impression that you are only allowed to do this once during the lifetime of the loan and without a stable source of income, I didn't want to risk missing a payment and using up my one-time chance back when I was 100% commission. Now that I have a good salaried, secure position; I don't know where to start. 

Student Loan Companies: GLHEGC, US Dept of Edu., SLM Financial Group (which I'm sure was previously Sallie Mae)
Comments: Student Loan Permanently Assigned to Government, Account transferred to another office, Account seriously past due date/account assigned to attorney, collection agency, or credit grantor's public collection department. 

Total Student Loans Amount Owed: $108,897

Total Accounts charged off in collections: $3875

Medical Bills from no health insurance with the 100% commission jobs: $10,330

Judgement from Midland Funding: $735

 

I've already tried to call and ask for the lates removed on my car note but they refused to help since my car was a reposessed load re-instatement. I paid over $4k in fees and fines late 2015 to get my car out of repossession.  I am still trying to catch up on the remainder of that and can only afford the payment each other so there is always a balance that I'm carrying- which leads to the 30day late every month. 

 

I'm in bad shape.. 

 


 

Message 6 of 29
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

REHAB THOSE STUDENT LOANS !!!!!

 

I swear it's the BEST thing that can turn your credit in such a positive direction. I just completed rehab. Although it took 9 months (10 months for scores to boost) IT WAS SO WORTH IT. Check out the Student Loan section of the forums. There is a lot of golden nuggets there for you to read up on. My defaulted lines went from being one of the worst things on my reports to being the best things. ALL of my negative lates were deleted. 

 

Ultimately you will have to decide if banckruptcy is best for you, however you can rebuild without it. Do you mind letting everyone know what your monthly income is, as well as the amounts of your monthly bills?

Message 7 of 29
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

Yes, yes yes! My student loans are my longest positive tradeline and oldest tradeline. It is what allowed me to get approved for a mortgage! DO IT!


@Anonymous wrote:

REHAB THOSE STUDENT LOANS !!!!!

 

I swear it's the BEST thing that can turn your credit in such a positive direction. I just completed rehab. Although it took 9 months (10 months for scores to boost) IT WAS SO WORTH IT. Check out the Student Loan section of the forums. There is a lot of golden nuggets there for you to read up on. My defaulted lines went from being one of the worst things on my reports to being the best things. ALL of my negative lates were deleted. 

 

Ultimately you will have to decide if banckruptcy is best for you, however you can rebuild without it. Do you mind letting everyone know what your monthly income is, as well as the amounts of your monthly bills?


 

Message 8 of 29
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!

 
Message 9 of 29
Anonymous
Not applicable

Re: 400 Credit Score - Considering Bankruptcy! HELP!!


@Anonymous wrote:

I've made very poor financial and credit decisions fresh out of high school, never learned to live on a budget, moved away from home straight out of college and started working in high-pressure 100% commission sales jobs for the past 5 years. 100% commission didn't help considering the fact that I am not financially disciplined nor learned how to budget effectively. Now that I am 28 and realizing that poor credit has become roadblocks in getting a car, renting apartments, closed off options in tough financial times and definitely when I would like to start a family and purchase a home within the next 5 years. I've been ignoring all student loans and credit reports for the past 10 years but cannot allow this to hang over my head anymore. 

Please help with any/all advice on whether or not it makes sense to try and repair my credit or file for Chapter 7 BKO to start a new slate + rebuild now that I am more financially knowledgeable and responsible?

 

Equifax: 464 TransUnion: 454 Experian: 456

Signed up for the 3B and started a monthly subscription to monitor my credit with myFICO 

1 Open Account with 30 day late (for my car)

6 Charge off where credit grantors wrote off the debt as a loss

19 Negative item reported

15 Student Loan accounts all in default

10 Collection accounts

 

 

Student Loan Companies: GLHEGC, US Dept of Edu., SLM Financial Group (which I'm sure was previously Sallie Mae)
Remarts on credit report: Student Loan Permanently Assigned to Government, Account transferred to another office, Account seriously past due date/account assigned to attorney, collection agency, or credit grantor's public collection department. 

 

Total Student Loans Amount Owed: $108,897

 

Total Accounts charged off in collections: $3875

 

Medical Bills from no health insurance with the 100% commission jobs: $10,330

 

Judgement from Midland Funding: $735

 

Please help in any way possible!!! 

 


I don't see bankruptcy really being a viable alternative for you as the majority of your debt is student loans. The truth is that you can discharge your student loans if you can prove undue hardship but it is very difficult. As for the medical debt google the HIPAA Letter Process follow it as laid out. If you have problems finding the website or any questions PM me.
Message 10 of 29
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