OK. I have over $100,000 credit card debit (They are all credit card debit) built up over last 10 years. I've been paying only minimum payment over 4 years and doing a lot of balance transfer. I sucked out all my blood with those high interest rate and I think It's time to fight back! (I stopped paying them from this month. Of course I have no money pay them off so I want to file for a BK7. But if possible I want to avoid filing bankruptcy at all cost. A credit repair agency told me that just don't pay them and when they take it to collection agency, they can repair all my bad record and then they can help me to rebuild my credit rating. My questions are 1. It's hard to believe what the credit repair agency says. Is it really possible? 2. Can my creditors garnish my wage? 3. Will collection lawers sue me? If so, what should I do? 4. Is there any other way to resolve this debit problem without filing bankruptcy or following what this credit repair agency says? No debit consolidation program plz.
You are a great candidate for BK. Here are some answers. 1. Credit repair can work, but it might be a 2-3 year fight. In the meantime you won't get any new credit except for subprime. You need to let them charge off first. Then you'll be going through validation and all the stuff we talk about. After 2 years you can settle any outstanding accounts for 30-50% discount. If the amount is over $600 you might get a 1099. BK will let you rebuild credit faster, but you'll have a BK on your record. 2. They can't garnash wages until they sue you and get a judgement. 3. They will sue you if they feel it's worth they're while. 4. Consolidation is a joke. Don't bother. The two choices I see are BK or be a credit fugitive for a couple years. BK laws are changing so keep that in mind. Check the SOL for your state too.
Forget the credit counseling services - most will do more damage to your credit rating than the bk filing itself. go to http://chat-cards.com/wwwboard/bankruptcy/messages.html for more adivce by people who have actually filed but begin to plan for bk now. If you can wait another few months consolidate and transfer balances to zero out some credit cards. Then stop paying and wait until the very last moment to file - Right before wage garnishment. Hopefully when the dust settles, you will have a cc or two left over to start repairing your credit. 100k is too much to try and repay. It will take you longer (10+ years) than if you file bk and repair your credit in a year or two. Of course, all this is moot if you haven't learned to live within your means. good luck
