I found this board via the BK forum. I am in such a quandary. I have decided on four different occasions, then changed my mind, about filing BK. I first wanted to file on the unsecured only, then decided to go with the secured as well and surrender my home. The problem with the latter is finding an apartment and maintaining it due to some domestic issues. Anyway, I'm still not sure what to do. I previously decided to just slow pay everyone until some one is paid off which would provide more income to pay the others, eventually, on time again. Is it better to have slow pays than bankruptcy? Some of the people have reported improved credit scores immediately after a BK discharge. Am I beating my head against the wall trying to repay everyone in hopes that my credit will improve in less than 10 years, when it could improve just by bailing out?
Hi Welcome to the board , That is a really tough situation. We declared BK in 93 and it is still a hinderance in getting credit 9yrs later not all companies issue credit w/ past bk period...so once that bk is there it makes no difference what your score is sometimes. IMHO if you can avoid bk I would. As far as the slow pay...if in your boat I would try to prioritize the important bills and pay those first like the morgage.No one wants to rack up chargeoffs but maybe you can decide which accts are too far gone to salvage and pay on the ones willing to work with you. Not everyone is going to sue you for immediatly if at all I would think I may be wrong but I would think down the line a chargeoff is easier to deal with later (to pay it off etc) a Bk is a permantant 10yr black mark that you can't negociate later on down the line. Good luck I think we have all been there at one time or another.... if collectors are calling and bugging you there is lots of info on cease and desist letters here that will at least get them off your back till you can come up with a plan of action. Jamie
Also - if you decide to let some charge off, set aside the funds you'd be paying monthly and speak with the OC at 5-6 months after the last payment, right before it charges off. Depending on the OC, they may be willing to settle for 25% - pay with the money you set aside. You'll have a paid CO on your CR and you can work on getting that off later. After 2 yrs, it affects your score less. (The OC probably won't delete or agree to less than a settled for less notation.) We were able to settle one CC for 25% at 6 months past the DLA. I wish I had tried to settle more this way - it's less worry than having CAs contacting you for years.
