Bank of America.. bankruptcy option

You are going to file Bankruptcy over a $3500 dollars on one credit card? What about finding some part time work and paying the minimum until you get on your feet again?

 

Better get your advice from a lawyer.

 

I'm no expert...BUT I don't think you can for $3,500...

 

You can, but DON'T!

Dude, been there, done that, go to CCCS and get on a payment plan with them. It'll thrash your credit for as long as you are on the program, but as soon as you get a job and a couple of bucks in the bank, you can drop it and the tradeline notations disappear. Five or six grand is nothing! Don't screw yourself over a temporary cashflow situation!

BK isn't for 7 years, it's for life! Applications read, have you EVER declared bankruptcy?

Dancer

 

From what I've read, it is possible to file for any amount but for 10k or less most atty's will tell you to work out some type of agreement with the creditor rather than file.

As I read your post I noted you said you had "other credit card debt" but you didn't post how much your **total** debt load is.


There are bankruptcy codes on "preferential payments" so I would be very careful how much you plop down on any one creditor in particular if it ends up that you should file. There are also rules governing amounts of cash advances and the time between the transaction and when it's safe to file, it's usually about 90 days or so. (remember student loans are rarely dischargeable, so count on keeping that payment.)

If your debt load is more "substantial" than what you've stated, see a bankruptcy attorney in your area to get the facts on your particular circumstances according to the bk laws in your state.

If it's really that low, look for other options. Everyone else is right, that would be too drastic a measure for that amount of debt. Definitely NOT worth it.

 

This is very sound, intelligent advise.

H

 

Even I could tell from your first post that you were talking about more than $3500 in debt.

I think you were asking will that 5 month old loan look like you took it out to BK it. The answer is NO. The court is looking more to see if you charged/financed a luxury item less than a month before and filed.

I've been there... making less than 20K and oweing a substantial amount of $$$$$. BK7 is for 10 years (or less) and NOT for life. Yes it's in the district court system indefinately on file but for credit people are only checking the big three.

You can use a "discount" lawyer who will do nothing but tell you to bring in your debts and he will calculate the liabilities you have and see if BK7 is feasible. (I'm guessing you don't own a house.) He will then tell you if he thinks that the court will approve it. (Courts don't take anything these days from people who file. Not even a brand new car because it's not yours.) Then it's your decision to do it or not. Your Income and your Debts are all you have to weight. Forget about the stigmatism... I know more upper middleclass people who have filed and kept most of there nice "stuff" then you would believe.

 

Well, with no job and a cc company moving for a judgement, you probably have no choice. I would echo Fat Jake's comments about the $3500 cash advance. Using credit for medical reasons is no luxury purchase. I wouldn't pay anyone anything until you see a lawyer. Mosy lawyers advise waiting 60 days since the last credit card transaction before filing. Also, you don't want any questions about giving one creditor preferential treatment at the expense of the entire class of creditors. Keep your wallet in your pocket until you get legal advice.

 

tell me, how does cccs thrash your credit when your on a debt management program?

 

For starters, they note your accounts as being handled by CCCS, and that has as much derogatory effect as filing bk, at that time.

Second, all the accounts being paid by CCCS will continue to report you as delinquent, most will still charge you late fees and exhorbitant interest. If they lower the amount you have to pay, they will charge the balance off and list on your reports as R9 - charge off. Very bad. You waive all your SOL rights, because when they accept CCCS, by contract, they update your account status to "current," (yes, despite the entries on your report) so your SOL starts over. After you finish paying under CCCS, the charged off amounts are sold to collection agencies, who will hound you for as much of your natural life as they can. dinging your reports constantly, and if they can't collect, they sell the debt to another CA.

And you will be out all the money you paid.

 

Type in CCCS in the search and see what you come up with.

A year ago people who had been on CCCS were posting they wish they did BK7. With CCCS on your file you can't get "ANY" new credit and it's sometimes a pain to get off your entries after you get out of the program.

CCCS and BK13 sounds good for people with alot of assets vs. BK7.