Wondering if I should file Chapter 7 BK

CGame · ‎04-13-2015

Hi guys...I have a question about filing BK. Should I or shouldnt I? ANY advice would be greatly appreciated!

I own a home, I'm good with the mortgage for now

I own a car, Im good on the note for now

I have 4 credit cards...Limits are not too high, the highest one is 2500, and the balances are under control for now.

Utilities are under control, as well as thing slike cell phones.

My issues are: I have 3 credit cards that have been in collections and I am paying them off monthly, ($250 total for all 3) and I recently got hit with a student loan garnishment. ($250) These may put me in a slight finanical danger, especially the garnishment as it was just added on last month. I work full time, and my wages are decent and I have a spouse who makes pretty good money as well. Is it worth me filing Chapter 7 to get those collections/garnishments off me? My fico as of today is 606. Any advice you guys can offer would be greatly apprciated.

TRC_WA · ‎04-13-2015

Based on what you've said I would say filing BK would be a stupid decision.

Research the credit rebuilding forums here on actions you can take regarding the collections/garnishments.

FICO8 current as of : 4-6-25 EQ: 736 TU: 728 EX: 722
Hard INQs last 12 months: EQ: 0 | TU: 0 | EX: 0
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 31% --- AAoA: 6.5 years --- Income: $200k
Last app: 4-6-24

Anonymous · ‎04-13-2015

I'm no BK pro, but I think that you really don't have enough debt to make filing worthwhile. Maybe with some budgeting or overtime, you could more effectively manage what you have going on. Good luck!!

Shogun · ‎04-13-2015

OP.. I moved here because I agreed with the other posters. Let them take a stab at it here.

Starting Score: 504
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.

Anonymous · ‎04-13-2015

How much are the CCs? You can BK out of those, but not that student loan. You're stuck with that until it's paid.

Anonymous · ‎04-13-2015

Without knowing the totals debt as well as total income its a little difficult to say. $250 a month is not a whole lot for a garnishment. Last year when I got hit it was 25% of my gross after tax pay - that amounted to about $700 a month. You're just showing whats under a small corner of the tarp, whereas we really need to see it all to give any useful advice.

Big question is, how long before some of these are paid off?

Shooting-For-800 · ‎04-13-2015

Student Loans are not even considered to be discharged 99.99% of the time.

Your credit cards are nothing.

Do not file.

Call your CC and beg for 0% and make the payments.

Rebuild started in 2014 - $100k unsecured credit in 2017 - $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

Anonymous · ‎04-13-2015

No, don't file. How much do you make and how much are your other expenses if you don't mind me asking? Bankruptcy is certainly NOT the answer.

Anonymous · ‎04-13-2015

Go to the student loan section of this forum. You will learn about rehab program for the student loan! I highly recommend this for you and do not file BK.

Anonymous · ‎04-13-2015

Rehab your SL. After five voluntary payments (since you're already being garnished your payment will be very small) the garnishment will be lifted. Then select graduated payment. My SL is $30k and my payment is $105 and will graduate up to just under $400 over the life of the loan. I plan to have it paid off far before that. Dude, your finances aren't even close to being bad enought for BK. You could get a part time job and pay everything off except for the SL in less than a year.