Here is the situation. I started a company two years ago. I accrued 50,000 in debt between my wife and I(mostly hers). I lost the business 6 months ago and had to take a crappy job. i have not paid my credit cards in 6 months ( could not afford). so now they are all getting charged off. my biggest is 10,000. My wife makes the most money now. But i am afraid of them garnishing her wages. What to do, wait it out and try to save money and settle with them or file bk 7. i am really confused and i dont know how to handle this!
I personally don't think much more damage could be done by filing. $50k is alot of debt 6 months already past due with a "crappy" job. Pay it all back and you will be fine within 7 years. Or file and you will be fine within 10 years.
If i start paying them off will the 7 years begin when im done paying them off? also is there any way to get those charge offs off my credit report?
The 7 year clock already started on those accounts a few months ago. Lets say you paid off these accounts in like 5 years. 5+7 years from that would=12 years since you were actually late. Your at less than 7 years already. The dumbest thing you could do would be to start paying on these accounts, and then going late on them in the future. That would reage those accounts back to 7 years again. At least they will be reported that way. Maybe you could find a way to get some or all of the chargeoffs deleted over time. That should be the least of your concerns right now. $50k is alot of money to pay back in your situation right now. The monthly payment on that would be a mortgage amount for many years. I've been there myself and I filed B.K(7) instead of paying it back. Life isn't to bad after a B.K and others here will tell you that. Good Luck!
If i start paying them off will the 7 years begin when im done paying them off? The short awnser is NO, but I am not a pro.
Re: Re: should i file bankruptcy or not The answer is - it depends. If these accts are already charged off, then the 7 years started from the date of the delinquency that led to the chargeoff. If there are some that haven't been charged off yet, then paying on them will extend the 7 years til your last payment.
Re: Re: should i file bankruptcy or not Sit back, think and then make your final decision. Pay back the $50k or more with the interest and charges, or file B.K and move on from what you will have to deal with. $50k is way to much real money to pay back for some people and $50k is doable for others, figure out which situation you are actually in. The dumbest thing you could do is pay back some of it and than go bad. If ALL of the accounts are charged off you could still get a judgment which would stay for another 7 years on public information. Don't worry about how your credit report will look in the near future. That is the next step after your decision.
Re: Re: should i file bankruptcy or Thanx for the help! I am really confused. one day I feel like O.K I can pay these off, then I actually figure out the monthly payments and Its hopeless. Im really just worried about getting our salary garnished, I could not afford that!
