Low 400s credit score.. considering bankruptcy.

[Anonymous]

Hi, my score is approx 408. According to Credit Karma I have 6 closed credit cards (to my knowledge, they're all in collections though), a car payment that I'm 30 days late on (but have a payment scheduled), 2 student loans ($12000 and $1000) and one credit card in collections.  Backstory is I have bipolar disorder and had a psychotic episode that lasted approximately 6 months.  During that episode, I applied for all of my credit cards.  Over the next two years I spent up the limits on all of them.  I have $24,940 in debt.  Is there any hope for me? I'm considering bankruptcy but am scared of losing my car or the potential to rent again.  I have been a lot more responsible with money after my most recent hospital stay and have caught up (almost) on my car payment but not my credit cards.  HELP.

[biglista88]

Bankruptcy is a lot less scary than you’d think. I was worried also but after hiring an attorney(1900$), all my worries quickly faded. I owed about 34k and was able to file for chapter 7 and absolve myself of every penny. I had a 26k auto loan that I owed about 18k on. I was able to “reaffirm” this particular debt and keep my loan terms exactly the same all throughout the bankruptcy. My scores were like 630 a few months after bankruptcy and I was well on my way back to 700 quickly. I lost my job however and became delinquent again unfortunately. But I’m rebuilding again for the 3rd time now and the future is still as bright as ever. I don’t have that 34k hanging over my head and I’m grateful.

I would suggest getting a free consultation from a local bankruptcy attorney and work from there. Good luck! P.S all my debts were due to my gambling addiction so you’re not alone in having problems that you’re working on. Keep pushing forward. But hold yourself accountable also.

[Jnbmom]

You need to give more info. What cards do you have the balances and  interest rates and your income. 

I wouldn't even worry about your scores ATM you need to tackle your debt. Student loans can't be included. Most times you can keep your car, but we need more info before giving advice.

[Anonymous]

As mentioned by others we need more information. Score provided by credit karma aren’t accurate. You need to find out what your FICO score is.

I will start with getting your 3 credit bureau report from annualcreditreport.com make sure to print all your reports. Check what accounts are in collections. Make a list of those accounts and what collection agencies it has been assigned to. Calculate how much is your total debt and see if you can pay it off.

I am in the same boat and my FICO score is in 400s with 7 total collection accounts. But I am working through it. It will take time but you will get there.