Unsecured debt lawsuit!?

Question

My attorney wants to litigate and challenge, I want to file bankruptcy. I am only 1 year away from SOL. I am looking for best option to repair credit in near future!

Any advice?

Answer 1

Why not contact your creditors and work out a payment deal and stick to it?

Your Attorney wants to make money - if you owe the debt, he will get his money and they will get theirs and you will just be more broke.

The new bankruptcy laws don't excuse you from your debt anymore - you just have better terms to pay it off.

No matter what you do, it will be on your credit 7 years from when you paid it off - not from when you incurred the debt.

You can't repair your credit withot satisfying your debt. It don't work that way. Reapiring your credit means writing to companies that have you reported as a bad credit risk and asking them to clear their info on your credit report. They can't do that if you are a dead beat.

Answer 2

Since we do not know any of the details it is probably a good idea to listen to your attorney.  But it does not matter if you are 1 year or 1 month away from the SOL expiring, as long as the creditor files suit before the SOL expires it is valid(at least in reference to the SOL).

If you have a good case where you feel it will get dismissed the cost of the attorney to do this will be worth it in the long run rather than having a Bankruptcy on your record.   Now, if the attorney is going to charge you more than the suit is for, or you don't think you have a chance to prevail.  Then that is a different matter where you may want to fight it yourself or see if you can settle before going to court.  The last resort would be BK and unless you have a lot of debt and no ability to repay it would not be a good option.

Answer 3

Bankruptcy will s***w up your credit for a while (It remains on your credit report for 7 to 10 years).  If there is any question about your debt, you might want to challenge it since winning the challenge will remove it from your credit report in all likelihood.