Do I have to file bankrupty when most of my things have already gone to charge-off?

Question

I did a bad couple of years-new job,being sick and marriage problems. Now all the old bills have gone to charge-off, so my question--do I still need to do a bankrupty so I do not have to worry about them trying for any money in the furture? or can I just leave them in that charge-off and try to start fresh?

Answer 1

Charge off is an accounting term.  Your creditors deemed the account uncollectible and wrote 'em off their books.  The debts were probably sold to collection agencies and you are still liable for these debts.

Derogatory items will stay on your credit file for 7-1/2 years from the date of first deficiency.  

There is also the Statute of Limitations (SOL), the timeframe to bring lawsuit.   This varies from state to state and typically starts from the last activity or payment.  Check your state:  http://www.bcsalliance.com/statute_of_li...  Chances are you could still be sued for these debts.

You can live with the poor credit and ride out the reporting period and hope the collection agencies don't find you.  Or you could check into bankruptcy.

Answer 2

Try contacting a bankruptcy lawyer for accurate details.

Answer 3

Your creditors have a period of time (called 'statute of limitations' or SOL) to try to collect these debts from you.  The SOL is determined by the type of debt and your state laws governing the SOL length.

Most states SOL laws are between 2 and 10 years, so if you are anywhere between this period of time, there's a possibility you'll get sued.  The only way to get protection from being sued is to file bankruptcy, but even then, the creditors have to agree to be included in the bankruptcy proceedings.  They can refuse and try to sue you independently, but this is rare.

Be aware that bankruptcy is not the "clean slate" it once was.  Since the laws changed a few years ago, most debtors are required to repay the majority of their debt.

Everyone's case is different  and you really need to consult with a bankruptcy lawyer (and *not* the ones that advertise on TV) to discuss all of the facets of your situation.  Any reputable lawyer will give you a consultation free of charge.

Answer 4

bankruptcy should always be your last option since it stays on your credit for 10 years. depending on how much you owe, you might be better off with charge offs than bankruptcy. Bankruptcy should only be considered as an option when there is a viable threat that you will be sued in civil court for non payment. Usually it happens to those who owe a lot of money say $50,000 and more. If you dont owe a lot of money, just wait 7 years and it will be removed. If the statue of limitations has passed, then the creditors will have no legal grounds to sue you so dont file for bankruptcy then. Check your state's SOL rules.

Answer 5

Talk to a bankruptcy lawyer to make sure.

I believe filing will get them off your back

for good and restore your credit.

Good Luck to You.

Answer 6

Charge off only means that the original

creditor/credit card co got tired to billing

or looking for you, usually the charge off

is after 180 days, but that only means

that once the charge off is made, they

sell your debt to a collection agency for

pennies on the dollar so if you dont want

to do bankruptcy, once the collection co

calls you have a change to haggle from

50=70% of the debt but remember to

make an agreement to pay to delete

this means that they have to send you a

letter when you pay, make sure that it

says paid in full and they have to remove

any negative info to your credit report

and you will have the letter just in case to

prove to the major credit bureaus.

Now if the debts are too high and theres

really no no income, nothing at all, and no

assets, talk to a bankruptcy lawyer that

would be your best bet and uyou will

start fresh (well sort of, you still have to

rebuilt your credit, it takes 7-10 years) but

at least the stress of these people on your

back is gone. If the debt is less than 10k

I wouldnt recommend bankruptcy at all.

Good luck!!!