pamelabe Posted October 8, 2004 Report Share Posted October 8, 2004 When is it clear to someone that their only option is bankruptcy? Im still not sure because I am employed but dont have any assets to cash in to offer more for a settlement. The cards are not wanting to settle for less than 75% and I just dont have that. If I negociated to start to re-pay the debt, what should I expect the best to agree to in such a situation in order to avoid BK? Will it be expected of me to start from the amount I walked away from 3 years ago or the inflated amount now 3 years later? Link to comment Share on other sites More sharing options...
Fade to Black Posted October 9, 2004 Report Share Posted October 9, 2004 When stress starts to take a toll, when you eat, sleep and think all day long about how you are going to pay, when the phone is no longer your friend because of creditors calling you, when all seems lost...bankruptcy is the last option because it will put a stop to most debts. The tradeoff is 10 years it stays on your credit report.I will tell you from experience...2 months after I filed a chap 13, I was pre approved for an unsecured credit card at 18.9% with a $2000 limit. After 2 years, I was able to get a home loan @ 7.125% for 2 years. Life will continue and will be better if you can manage your finances. Link to comment Share on other sites More sharing options...
LadynRed Posted October 9, 2004 Report Share Posted October 9, 2004 Exactly. The BK may stay for 10 years, but the bad debts will continue to stay on your CR for far longer as you continually struggle to pay them off. If that IS a problem, then file for bankruptcy and get it over with, get a fresh start. The impact of BK declines as time goes by and you can lessen its impact futher by carefully rebuilding your credit post-discharge and thru credit repair. If you can keep your credit spotless post-bankruptcy, you'll feel the pinch far less. Link to comment Share on other sites More sharing options...
pamelabe Posted October 10, 2004 Author Report Share Posted October 10, 2004 Thanks. Morally I dont feel very good, I feel defeated. I dont mind struggling or trying really hard to pay what I accrued but MBNA has sued me and won so I feel my only option is to file since I am not willing to pay them nearly double what my balance was when I first told them Im in trouble. They didnt want to work with me at all and never wanted to create and arrangement or settle so I feel Im being bullied into this. Thanks again for all your support. I havent charged on my cc's in a long time, only continueing to pay off debt all along the way including Uncle Sam. Link to comment Share on other sites More sharing options...
braxas Posted October 13, 2004 Report Share Posted October 13, 2004 I learned the hard way, you dont have your life together unless you have your TAX life together, the IRS takes all prisoners, I would consider that your highest priority, pay them off if you have made an arrangement.Although the CC company gets a judgement, it may take a while to act on it, a fresh start sounds right for you, do the Bk,keep your house, and the freed up $$$ may make up the extra $300 your talking about Link to comment Share on other sites More sharing options...
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