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Payoff CAs or Declare Chap 7? Help Please.


Steve76
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Greetings All,

I owe $30 k in credit card debt. Originally, the debt total was $21k owed to 4 credit card companies. The late fees and interest are obscene. My last payment to an original creditor was 2 years ago. The original creditors (Fleet, Direct Merchants, Chase, MBNA) will not deal with me, and refer to the collection agencies.

All my debts were charged off and sold to collection agencies, a few of which have law office names in my home state. I make about $20 k year, rent an apartment, and own a 12 year vehicle worth about $2,500. I have no other assets.

I would like to settle my debts and avoid BK because I would like to become a police officer, and buy a house at some point. Right now, I probably couldn't be hired due to my very high debts. So I am having problems finding work to fully pay off that high of a debt.

From what I have read, there is no point paying off a collection agency. So I am considering filing for BK ch 7 to just get the rid of the threat and stress of a potential lawsuit, and constantly having to hide from collection agencies.

I found out about Dave Ramsey 2 years ago, and have reformed my bad financial habits.

Could some kind soul offer me some advice?

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Greetings All,

I owe $30 k in credit card debt. Originally, the debt total was $21k owed to 4 credit card companies. The late fees and interest are obscene. My last payment to an original creditor was 2 years ago. The original creditors (Fleet, Direct Merchants, Chase, MBNA) will not deal with me, and refer to the collection agencies.

All my debts were charged off and sold to collection agencies, a few of which have law office names in my home state. I make about $20 k year, rent an apartment, and own a 12 year vehicle worth about $2,500. I have no other assets.

I would like to settle my debts and avoid BK because I would like to become a police officer, and buy a house at some point. Right now, I probably couldn't be hired due to my very high debts. So I am having problems finding work to fully pay off that high of a debt.

From what I have read, there is no point paying off a collection agency. So I am considering filing for BK ch 7 to just get the rid of the threat and stress of a potential lawsuit, and constantly having to hide from collection agencies.

I found out about Dave Ramsey 2 years ago, and have reformed my bad financial habits.

Could some kind soul offer me some advice?

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What state are you in and when did you last pay the orginal creditor? If you're in a state with a 3 year SOL on cc debt and you're close, you may be better off trying to wait it out.

There's an SOL link at the top of the page. CC's are considered open accounts.

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What state are you in and when did you last pay the orginal creditor? If you're in a state with a 3 year SOL on cc debt and you're close, you may be better off trying to wait it out.

There's an SOL link at the top of the page. CC's are considered open accounts.

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If you are seriously contemplating a BK7 you need to get it filed before congress passes their BK reform.

I have a friend who is trying to be a police officer. He did have an issue with the BK in his history (caused by divorce), but he was informed that 2 years after discharge, employment would not be a problem as long as everything since the BK is current.

I think it depends upon the state/jurisdiction. Call the PD recruiter and see what he/she has to say about it.

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If you are seriously contemplating a BK7 you need to get it filed before congress passes their BK reform.

I have a friend who is trying to be a police officer. He did have an issue with the BK in his history (caused by divorce), but he was informed that 2 years after discharge, employment would not be a problem as long as everything since the BK is current.

I think it depends upon the state/jurisdiction. Call the PD recruiter and see what he/she has to say about it.

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