Need advice on rebuilding, old chargeoffs

[Anonymous]

You have over $50,000 in charge offs.

Do you qualify for Chapter 7?

If so it might be a good choice to walk away from that $50,000+

If you are doing that it probably makes sense to include the $8K o other debt.

Are you right side up on your car?  If not include it and do not reaffirm.  That depends on the state.  Here in NJ you do not have to re-affirm and they cannot take the car as long as you stay current.  I did that for a while then turned it in when I was able to get a new car.

Refinancing your current car could be less important if you walk away from the 58K of debt.

You should however be able to finance a new car (oddly refinance might be tougher).  I have 2 new car loans between 1 month and 6 months post CH7 discharge.  The last thing I am suggesting is to go buy a new car but if you are upside down on your car and don't reaffirm and walk away from 58K you could keep current with your car then when you get approved for what you want buy the new car.  

Scores - I am 10 months post discharge and I am between 640-650 FICO 8.  680 is coming. Right now my big problems are # of inquiries, amount of new credit and  little bit of utilization.  Utilization is in the 40% range and needs to come down.  I have way too many inquiries but I think I took the right actions to get my credit to where it currently is and since I didn't get approved for everything it took lots of inquiries but their effect weans after 6 months.

The main reasons not to file I can think of would be:

• If it would be Chapter 13 not 7 (not that it's bad but it was better for me to have a CH7)
• If you are looking to purchase or refinance a house within 2 years (seems to need to be 2 years post discharge)
• If a credit check could hurt your chances of landing a new job

Good luck and keep us posted.

[Anonymous]

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@Anonymous wrote:

You have over $50,000 in charge offs.

Do you qualify for Chapter 7?

If so it might be a good choice to walk away from that $50,000+

If you are doing that it probably makes sense to include the $8K o other debt.

Are you right side up on your car?  If not include it and do not reaffirm.  That depends on the state.  Here in NJ you do not have to re-affirm and they cannot take the car as long as you stay current.  I did that for a while then turned it in when I was able to get a new car.

Refinancing your current car could be less important if you walk away from the 58K of debt.

You should however be able to finance a new car (oddly refinance might be tougher).  I have 2 new car loans between 1 month and 6 months post CH7 discharge.  The last thing I am suggesting is to go buy a new car but if you are upside down on your car and don't reaffirm and walk away from 58K you could keep current with your car then when you get approved for what you want buy the new car.  

Scores - I am 10 months post discharge and I am between 640-650 FICO 8.  680 is coming. Right now my big problems are # of inquiries, amount of new credit and  little bit of utilization.  Utilization is in the 40% range and needs to come down.  I have way too many inquiries but I think I took the right actions to get my credit to where it currently is and since I didn't get approved for everything it took lots of inquiries but their effect weans after 6 months.

The main reasons not to file I can think of would be:

• If it would be Chapter 13 not 7 (not that it's bad but it was better for me to have a CH7)
• If you are looking to purchase or refinance a house within 2 years (seems to need to be 2 years post discharge)
• If a credit check could hurt your chances of landing a new job

Good luck and keep us posted.

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Hey thanks for sharing,

I am 99% sure i qualify for a CH7 and yes i am upside on the car as well about 8k. Would i be able to keep the accounts i have open if i filed the ch7? For examples the NFCU i just opened and the 1FBUSA that has a 7year positive history?

I would like to purchase a home soon but either way i wouldn't be able to unless the chargeoffs were removed.

My biggest concern is having a high score post discharge but still not getting approved for credit due to the bankruptcy on record

[Anonymous]

High scores and not getting approved because of bankruptcy is kind of where I am.

I know better than to app for the best of the best credit cards but still most of the declines I get are auto rejects because of the recent bankruptcy.  I know I have to wait 2 years post discharge for that to get better, however I am not in a bad place.  I have 2 car loans, a couple of visa cards and good store cards I care about like Walmart and Amazon.  

I don't need anymore credit right now and will just garden until 2 years post discharge and then buy a house.

[Anonymous]

Does anyone have experience settling with these creditors? I have heard some people have luck and settled with BOA for 20%. I haven't had such luck, i offered $3000 for the account with $9540 and they countered with $5450.

[Anonymous]

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Bump, i am wondering if i should file ch7 or if i should just wait it out, and if anyone has prior experience on settlements with BOA

[Anonymous]

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@jroche91 wrote:

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@Anonymous wrote:

You have over $50,000 in charge offs.

Do you qualify for Chapter 7?

If so it might be a good choice to walk away from that $50,000+

If you are doing that it probably makes sense to include the $8K o other debt.

Are you right side up on your car?  If not include it and do not reaffirm.  That depends on the state.  Here in NJ you do not have to re-affirm and they cannot take the car as long as you stay current.  I did that for a while then turned it in when I was able to get a new car.

Refinancing your current car could be less important if you walk away from the 58K of debt.

You should however be able to finance a new car (oddly refinance might be tougher).  I have 2 new car loans between 1 month and 6 months post CH7 discharge.  The last thing I am suggesting is to go buy a new car but if you are upside down on your car and don't reaffirm and walk away from 58K you could keep current with your car then when you get approved for what you want buy the new car.  

Scores - I am 10 months post discharge and I am between 640-650 FICO 8.  680 is coming. Right now my big problems are # of inquiries, amount of new credit and  little bit of utilization.  Utilization is in the 40% range and needs to come down.  I have way too many inquiries but I think I took the right actions to get my credit to where it currently is and since I didn't get approved for everything it took lots of inquiries but their effect weans after 6 months.

The main reasons not to file I can think of would be:

• If it would be Chapter 13 not 7 (not that it's bad but it was better for me to have a CH7)
• If you are looking to purchase or refinance a house within 2 years (seems to need to be 2 years post discharge)
• If a credit check could hurt your chances of landing a new job

Good luck and keep us posted.

---

Hey thanks for sharing,

I am 99% sure i qualify for a CH7 and yes i am upside on the car as well about 8k. Would i be able to keep the accounts i have open if i filed the ch7? For examples the NFCU i just opened and the 1FBUSA that has a 7year positive history?

I would like to purchase a home soon but either way i wouldn't be able to unless the chargeoffs were removed.

My biggest concern is having a high score post discharge but still not getting approved for credit due to the bankruptcy on record

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You cannot keep the accounts you have if you file Chapter 7.  You have to include all your creditors.

[wa3more]

why would OP claim BK now ? I would wait until i was sued and they had judgments.

Some may sue, some may not. You will have a chance down the road to settle at 30-50%, maybe less. Research arbitration and see if your agreements have it, specifically JAMS.

I would wait to use BK. It is the nuke option. I settled 40k debt for less than 10k and avoided BK. Chase walked away from a 20k credit line.

[Anonymous]

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@wa3more wrote:

why would OP claim BK now ? I would wait until i was sued and they had judgments.

Some may sue, some may not. You will have a chance down the road to settle at 30-50%, maybe less. Research arbitration and see if your agreements have it, specifically JAMS.

I would wait to use BK. It is the nuke option. I settled 40k debt for less than 10k and avoided BK. Chase walked away from a 20k credit line.

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Thank you, makes sense. If i could settle the 50k for 10k-12k i would do it in a heartbeat. As far as arbitration how would i know? These accounts are long gone i don't have access even online to see them

[wa3more]

Go to the federal reserve website and get your credit card agreements. As part of the 2009 CARD act,, creditors were required to post account agreements online. You should be able to find all of your account agreements there.

I'm not familiar with BOA in terms of how agressive they are. First, find your agreements. They best thing that can happen to you id if your accounts are sold to JDB's. They often violate FDCPA/FCRA and don't have evidence to support lawsuit. A simple letter electing arb will send them running.