My fiancee ruined his credit when he was about 20 yrs old. He is now 24 and realizes that he made a big mistake. He was being young and irresponsible back then, and now that he wants to get his life straight and be responsible, his past snuck up on him and smacked him in the face. About two years ago he also voluntarily turned in his car because he could not make the payments. Yesterday, he received a collection notice for about $5000 (the left over amount after the car was sold that he owed, plus interest) and he is seriously considering filing for bankruptcy. In a way, I think he should, because he is way in over his head, and there is no way that he can pay all his debts within a decent amount of time. We have yet to see his credit reports (I'm so scared to even look at it!) and I know that is the first step. Should he do his best to dispute what he can? After that, should he pay what he can and let the older stuff fall off? Now that I think of it, isn't he better off just sticking it out letting the negatives slowly fall off instead of filing for bankruptcy? The clock starts again from when he claims bankruptcy, right? Any recommendations would be truly appreciated! Thanks to all of you who have been so helpful...
SD - the question is can he reasonably work a plan to pay back these debts? Consumer credit counselors - no charge - stop actions - BUT - make you turn in cards until all is paid. If it is 5K, no - do not do it. For me it was $127000 at 18% on about 20+ Gold Cards. But, again, I thought I would be dead and I did have plenty of life insurance to cover everybody on debts. When I lucked out and lived, My 100K salary, in the 40% tax bracket - would not even make the payments on the interest. Debt counselors turned me away. I went to an attorney and he helped Chap 13. He was superb - I never ever received a phone call from anyone involved in the BK. FYI - as you know - that was Oct 1996 - and considering that credit history, AMEX was the MOST UNDERSTANDING COMPANY I ever dealt with, giving me a new Green Card after they helped me work on fixing my credit. 5K - don't do it. Bigtime $$ / no money / harrassament? File Chap 13 - you could have an AMEX Card again in 3-4 yrs. cya hope this helps. also- check out nolopress.com (maybe nolo.com) for lots of great help with the decision/.
S.D. wrote: ------------------------------- My fiancee ruined his credit when he was about 20 yrs old. He is now 24 and realizes that he made a big mistake. He was being young and irresponsible back then, and now that he wants to get his life straight and be responsible, his past snuck up on him and smacked him in the face. About two years ago he also voluntarily turned in his car because he could not make the payments. Yesterday, he received a collection notice for about $5000 (the left over amount after the car was sold that he owed, plus interest) and he is seriously considering filing for bankruptcy. In a way, I think he should, because he is way in over his head, and there is no way that he can pay all his debts within a decent amount of time. We have yet to see his credit reports (I'm so scared to even look at it!) and I know that is the first step. Should he do his best to dispute what he can? After that, should he pay what he can and let the older stuff fall off? Now that I think of it, isn't he better off .... ======================================== AN IDEA go to each creditor and tell them you have X $ to settle each account and will divide it as a percentage to each creditor: and if that fails you are cansidering BK: Most creditors would rather get half a loaf than none: If they think you will file Bk. they are afraid the money will go to the other creditors and they are afraid that they will be the one left holding the bag! L.B. P.S. don't pay any settlement unless clerarig the Neg. Info.from all CRA is included in a written settlement agreement!!!
