$ 20,000 in credit card debt do you recommend I file Ch. 7 bankruptcy???

Question

I had 14 different credit cards charged off 2 years ago for a combined $20,000. The statute of limitations in CA. is 4 yrs so after 2 yrs i finally got a letter from an attorney threatening Litigation for one of the accounts of $4,000. Should I just file ch. 7 BK because if I pay this account I still got 13 other accounts to worry about ?

BTW I only work part-time & berly support myself & dont have any assets so i dont want to get garnished..

Answer 1

I suggest making a settlement on all your debts, bankruptcy will be on file for 7 years and will definitely be not worth it in this scenario.

Answer 2

You spent 20k and have nothing to show for it?  If you are going to steal the banks (a.k.a. Credit cards) money, you should have at least bought something to show for ruining your credit for the next 10 years.

Answer 3

I think you should contact a debt counseling company before filling bankruptcy as they are the experts in this field they can suggest you with a solution to payoff your debts.

As bankruptcy will remain on your credit report for mare than 10 years and if the individual is listed as having filed for bankruptcy, it results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. During the period of bankruptcy and after bankruptcy you would face difficulty in getting loan, purchasing and leasing and building your credit.

Here is the source of a debt counseling company for your reference: http://ezconsolidation.com

Answer 4

I would try to find some cash ( mom, dad, aunt, ect.) and file for bankruptcy. Your credit is already screwed and will be for a long time. Go ahead and file and then your bankruptcy will be on your credit for about 7 years. After it is gone open up a few department store cards ( they give credit to almost anyone) and slowly build your credit that way. If you do not file bankruptcy before you are forced to go to Litigation then you will be in even more trouble. You can have a judgment put against you that will not only garnish your wages now, but anything in the future. If you where to purchase a home years down the road ( or even inherit one) it could have a lien put against it. Do yourself a favor and file. You can also put a statement on your credit report about why your had to file, like no employment or medical reasons, etc. Best of luck and I hope I was able to help some.

Answer 5

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

http://nanoref.com/linksynerg/oljMwQ

Answer 6

Thank God we got people like Studly and Slimick who come here and help people while discrediting those "high and mighty" posters.

There really isn't much I can add to their answers, except that if you do your homework before, during and after you file...you can have respectable credit in 1-2 years. You might visit LifeAfterBankruptcy.com and read some of their FREE (aka...not spam) newsletters.

Answer 7

wow, how did you dig youself so deep. i would never reccomend bankruptcy and suggest you pay your debts. bankruptcy however will erase all of that but will be on your record for many years.

Answer 8

I love answers like Scotts.  

You have 14 negative items on your credit report, and soon will have some judgments.  Scot is worried about how your credit will look with a bankruptcy on it?  

Your current problem is to stop the judgments, and bankruptcy will do that.  Your problem now is coming up with the $1500 to cover the filing costs.

Answer 9

Bankruptcy is on your credit report for 10 years. What you need to do is contact a local qualified attorney and bring all of your paperwork (bills, last 4 yrs taxes, pay stubs for last 6 months), and see if you can get in to see an attorney that will see you for a free consultation. Call a few in your phonebook and tell them what you are needing to discuss. While the attorneys can send you demands and tell you they are going to sue, yes, they can and will, bankruptcy will stop them dead in their tracks. I don't advise it, but with the debt you have and the part time income, you have no means to pay this back. If nothing is done, you will be sued, garnished and this won't stop until you don't have a dime. Once you find an attorney, they will work with you to give you options on what to pay and not pay so you can at least pay the retainer fee they are going to want in full to file your bankruptcy. So, get off the internet, make a few calls, and see if you can get life back in order. Learn from mistakes, and make life brighter and get that fresh start! If you do in fact file....learn from it and make things better for your future!

Good Luck!!!