If credit score plummets, how will does this effect existing credit cards in good standing?

[Anonymous]

I just read your thread in the Bankruptcy forums. My advice would be what others have suggested. Seek legal advice at once and consider Chapter 7. Only an Attorney can give you the best advice.

[Anonymous]

I don't want to seek bankruptcy. I've worked so hard to build my credit, etc.  Do youMy heart is just broken over this. Will they really take my car (paid for and just 2008 Yaris with 100k+ miles)? Our family could not do without my vehicle for hauling children to school, etc. I am the only adult home during day for childcare. I was also hoping to keep some cards in good standing, but I see that is impossible w/o keeping all in good standing. I might also lose my savings and two small investment accounts. It might take me years, but I could still tough it out and keep paying on these. I have made it thus far. Please don't think I am dissing your advise. Just trying to avoid such drastic action any way I can.

[Anonymous]

Rhonda, today is a business day. Make the call. Only an attorney can calm your mind with definite answers. We cannot.

[Anonymous]

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@Anonymous wrote:

I don't want to seek bankruptcy. I've worked so hard to build my credit, etc.  Do youMy heart is just broken over this. Will they really take my car (paid for and just 2008 Yaris with 100k+ miles)? Our family could not do without my vehicle for hauling children to school, etc. I am the only adult home during day for childcare. I was also hoping to keep some cards in good standing, but I see that is impossible w/o keeping all in good standing. I might also lose my savings and two small investment accounts. It might take me years, but I could still tough it out and keep paying on these. I have made it thus far. Please don't think I am dissing your advise. Just trying to avoid such drastic action any way I can.

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Your car value would come in well under the exclusion limit, no chance of losing it.

[Anonymous]

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@Anonymous wrote:
Rhonda, today is a business day. Make the call. Only an attorney can calm your mind with definite answers. We cannot.

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Also, how much in savings and what type of investment accounts? Retirement accounts (401K, IRA, etc) are also a protected asset.

[Anonymous]

$1004.00 in savings; Prosper and Lending Club Peer-to-Peer lending aprrox. $1,500 each; Motif ETF portfolio $349. Small potatoes, I know. Some people maybe laughing, but I started out 6 years ago during divorce with zero credit, $567, and an old 1990 clunker chevy Caprice. I sold junk shop items online, worked as a temp in school lunchroom, sold my writing for $25 to $50 per article (journalist by trade), traded advertisement writing for half my rent on (no credit check) apartment, and strictly budgeted. $25 food budget, ate rice, beans, fresh veggies and a bit of meat twice a week. Managed to save almost $5,000, start investment accounts, build my credit starting with a secured card of $250. It feels like failure now to throw in the towel. We just paid half the house payment, and just over mininium on each card from our dewindling savings.

****We also just found (today!!!) a friend/renter willing to sleep in child's bedroom for $300 to $450 per month. I once ran a very sucessful Ebay store, and I am considering reopening or at least listing yard sale finds, our kids outgrown toys and clothes, etc.A friend also coached us through starting a "Youcaring" fundraiser - which is kind of like gofundme, but without the fees. I don't want to violate rules of forum by posting a link, but it can be found under disaster/emergency on the site, and we did provide proof of need with photos of damages, etc. I guess it all depends on if health holds out to try to bring in additional income, but already, I feel more proactive.

Am I just being dumb and prolonging the inevitable? I am hearing all the advise on bankruptcy, but I feel if we didn't jump the gun, maybe we could give it a couple of months and see if we can't pull ourself up by the bootstraps. Please know that all advise is appreciated and maybe necessary if things continue to go downhill. 

[Anonymous]

wells fargo is horrible with this.

i had 2 cards around 12k limit...

both were at like 50% utilization and i had some stupid store card, i paid online but payment didnt register for whatever reason.

i got hit with a 30 day late... next thing you know... my limits from wells are cut in half and now im at 100% utilization...

the other company reversed the error but wells fargo didnt and then requested a payment 5 times of normal payment to stay current.

this was part of the reason i decided i needed to file, they are the worst bank ever!!!

[Anonymous]

Wells Fargo - I know! Wish I'd NEVER opened card with them. I have them as my bank account do to ease of alimony deposits for the ex-spouse and because my daughter also banked with them and its easier for running of the household funds - but first balance transfer I did with card cost me some huge fee like $56. Something that freaked me out. Then the payment jumped to $150 that month and it was NOT that significant - something like 10% of credit allowance? Anyway - now think about if I do need to do debt settlement or bankruptcy. So easy for them to seize my alimony checks, my savings, etc. if I defaulted on that card. I would advise anyone (even with good credit as I had at the time) stuff does happen! If life throws some financial lemons at you, not a great idea to have a credit card you can't make payment on mixed in with your vital bank accounts. Its kind of like the old saying, don't crap where you eat?