My husband and I recently decided to file chap 7 to get out from under approx. $30K of CC debt that has hanging over our heads for about 5 years. Most have been charged off. Dh spoke to an attorney yesterday, and planned to pay the fees today and get the ball rolling. I've been furiously researching how to recover from the bankruptcy and re-establish our credit. Well, I ran across info. on the statute of limitations for debts., and almost all of ours have reached the limit. So is it really necessary for us to file BK. After a cross-country move, we're not being called or threatened with action. Should we just wait out the SOL? IMO, that would be better than filing BK, which will stay on our credit report for 10 years. In two more years, most of this stuff will drop off our credit report. Am I right in my way of thinking?
Sounds to me like you have answered your own question! A couple of COs that will drop off your reports in another 24-months (possibly sooner with some well worded disputes/debt validation) is always preferable to a BK that will stay on for up to 10-years. Michael
Thank goodness the statute of limitations have almost expired on those pesky debts..... it would sure suck to have to live up to your responsibilities. I'll save everyone the trouble of pointing out that I'm evil... evil for suggesting that the poster attempt to pay back the debts that they ran up. How dare I suggest such a thing. The poster should NOT file bankruptcy. If they're patient, and wait two more years, they can get a whole new round of credit cards and repeat the process. Filing BK will just delay that process.
Too Much: I understand your sarcasm, but also realize that you have no idea of our circumstances or intentions. I certainly won't try to justify myself by sharing those details with you. Neither my husband and I are proud of the situation we find ourselves in, and we don't intend to repeat past mistakes. When I speak of re-establishing credit, it's only to be able own our first home. We've lived on a cash basis for the past five years, and can certainly continue to do so indefinitely. You might want to reserve such harsh judgements until you know ALL the story. ~~~~~~~~~~~~~ Michael, thank you for your confirmation! Your help is greatly appreciated.
Too Much: I'd agree with the SOL expiring don't file bk. Just one cavest. Keep those current credit reports that show the chargeoff date plus any old statements with late fees or dunning letters with dates as some bottom feeding ca's will try and re-age. Keep 'em forever. Also, OPTOUT right now. That'll keep CRA's from notifying any ca's that you're applying for a mortgage. http://www.pirg.org/consumer/credit/bureaus.htm We've had a fair number of posts on many sites where debts that had dropped off the credit reports suddenly reappeared when someone applied for a mortgage.
Re: Too Much: So, you deserve to own a home, but the people you borrowed money from don't deserve to receive their money? Ok.
Re: Too Much: If you have not already done so, I would recommend that read a book by author Dave Ramsey titled "Financial Peace Revisited" - great book for those who want to finally become debt free. The book can be found at Borders, Banres and Noble, or Amazon.com and Dave also has a website (http://www.daveramsey.com) where you will find a pretty good public forum (support group - grin) for people who are also striving to become debt free. Michael
) Thanks! Thanks again, Michael! I ordered another finance book from B&N yesterday, so I'll see if the one you recommend is at our library. The website is very helpful!
