I have about $8000 in debt. $5000 of this is student loans which I have been consistent in making repayments for over a year. It comes right out of my checking each month. There's a couple of repos for about a total of $500 that happened when my ex and I were married. We had our house foreclosed on and then the bank auctioned it off. On my credit report, it states my balance is 0 for the house. Would that be right and how? The other things are mainly a cell phone and a utility company and a couple of credit cards I had. Other than the student loans, my debt is around $3000. A few questions... 1. Should I pay this stuff off or file bankruptcy? 2. If I pay these things off...will that make my score go up? 3. If something is a charge off, should I even worry with paying it off? Thanks
The bankrupcy situation really deals with your income situation. Student loans usually are not dischargable in any bankruptcy. The foreclosure on your report is possibly correct but does it refernece the foreclosure? If not then you may want to dispute it. Paying off your debt wouldnt hurt your score and a chapter 7 should be last resort as you will be in credit hell. Keep in mind that negative data can report for 7 years. The most important thing at this point is to remove the inaccurate data and talk to a professional regarding if your financial situation places you a good canidate for ch 7. Welcome to Confidential Credit Solutions No part of the post above or anything posted by us herein is to be considered legal advice. Confidential Credit Solutions is not a law firm. If you seek legal advice, contact a licensed attorney within your jurisdiction. We offer alternative solutions. No part of our website link, including clicking upon it, constitutes an offer of any kind or an advertisement to seek an agreement of any kind. The website link placement herein is for informational purposes exclusively.
Not much and not very quickly because of the foreclosures, repos, and other bigger problems. Eventually, as those get older and older, your scores will improve (assuming, of course, that you have a perfect payment record from now on and work to reestablish new accounts). Yes, eventually. Charge off just means that the original creditor gave up on it and probably sold or assigned it to a collection agency. It doesn't mean the obligation went away.
