In your opinion, what route do you think will yield a higher credit score quicker?

[zwiepak]

After months of contemplating the matter, I'm really leaning toward the chapt. 13. It seems like it's either that, or fight off charge off's and CA's for the next X years... Thing is, it's "only" 6 credit cards. I have a relatively lengthy credit history, about 27 trade lines all perfect, except for these damn 6 cards that got the best of me. Anyway, what do you think will raise my score quicker: Fight the OC's, and ultimately the CA's, or just pull the 13 and be done with it. My employment history is solid, 10+ years continuously employed, decent salary, and I know I won't get burned twice.

I don't know, any opinions on how quickly one can come back to the world of 700+ after a 13?

[the aussie]

Unless there are other reasons you are not posting, would would you contemplate BK. With 27 positive TL's and lengthy work history, you are better off dealing with the 6 baddies you have. BK will stay on your CR for 10 years where reporting for the baddies is only 7

Just my 2cents

[bigboyinc]

If you have 27 good trade lines then it would be silly to file for a ch 13. You have to just buckle down and fight with ths ca's and oc's. It wont take as long as you think and a bk would be in your file for 7 years. Just take it to them. Good luck

[zwiepak]

Unless there are other reasons you are not posting, would would you contemplate BK. With 27 positive TL's and lengthy work history, you are better off dealing with the 6 baddies you have. BK will stay on your CR for 10 years where reporting for the baddies is only 7

Just my 2cents

...because I took a new job for slightly lesser money, and I missed payments on my credit cards (long story, but I moved to FL from MA). From there, well, things got from bad to worse. I could no longer afford even the minimum payments. Now, I have 6 CC's that are close to being Charged off, and I can only imagine the swarm of collectors. Wonder how many will actually sue? got about 30K over the 6 cc's, spread out equally, more or less, just got wind my scores are BS, not fico, then found they're really in the mid 400's.. uggh... I don't care too much at the moment, for I won't need any credit for the next 2-5 years, but I can't just sit on it either... plus, I've got a big tax liability, but I can take care of that one...

[zwiepak]

If you have 27 good trade lines then it would be silly to file for a ch 13. You have to just buckle down and fight with ths ca's and oc's. It wont take as long as you think and a bk would be in your file for 7 years. Just take it to them. Good luck

heh, thanks...! I don't know, if I start getting hit with multiple lawsuits, I'm sure it won't be fun...

[Ahntara]

"...come back to the world of 700+ after a 13?"

Seven years for a 13, ten for a 7. It's my experience that any consumer with a legal entry will hit a 'glass ceiling' (score-wise) of 620-670. Consumers who pay and fight to clean up their credit have depressed scores for a longer period of time (4-5 years) but then reach the 700's, provided that no further derog data is added to your file. But this is all emphirical and could prove false at any time.

Do you have any significant assets to protect? I'm just not sure that weighing the impact of BK primarily on scores is the way to go.

[zwiepak]

"...come back to the world of 700+ after a 13?"

Seven years for a 13, ten for a 7. It's my experience that any consumer with a legal entry will hit a 'glass ceiling' (score-wise) of 620-670. Consumers who pay and fight to clean up their credit have depressed scores for a longer period of time (4-5 years) but then reach the 700's, provided that no further derog data is added to your file. But this is all emphirical and could prove false at any time.

Do you have any significant assets to protect? I'm just not sure that weighing the impact of BK primarily on scores is the way to go.

No, no assets to protect... I think I've actually seen sigs. of people here with credit scores in the 700 range like a year after bk...

what I'd like to believe I have going for me, is my current car loan, and one credit card I made sure to keep a low/zero balance on, and my prior history.

I'm definitely looking at a 13... so 7 years there, or 4-5 fighting it out, honestly, I've wrestled with this for sooo long, I'm tempted on the 13 and be done with it...

[hopen4800]

Man, I can't believe I'm saying this but here goes. Credit repair isn't for sissies. It sounds like you want afirmation for a decision you've already made.

If you want to take on these bullies you're in the right place! You have at your disposal some incredible resourses complete with its own cheering section!When to send this, when to stop that, when to "go whacko" when to put your hat in your hand and be charming. I have read some throughly heart-warming and inspiring accounts in this forum, Single Moms fighting back from crappy marriages and crappy credit to grow to confident self-assured empowered women that really know how to kick butt and take names. I've seen older guys like myself that had our hineys handed to us by business failures and be given hope and practical methods to pursue in order to regain some self-worth and a decent fico.

Think about it... There are bright law students, mortgage pros, retired kick-a@@ lawyers,brilliant "lay" people that have become skilled litigators....just for you! You asked for opinions, that's mine Peace

[TheRoadBack]

Man, I can't believe I'm saying this but here goes. Credit repair isn't for sissies. It sounds like you want afirmation for a decision you've already made.

If you want to take on these bullies you're in the right place! You have at your disposal some incredible resourses complete with its own cheering section!When to send this, when to stop that, when to "go whacko" when to put your hat in your hand and be charming. I have read some throughly heart-warming and inspiring accounts in this forum, Single Moms fighting back from crappy marriages and crappy credit to grow to confident self-assured empowered women that really know how to kick butt and take names. I've seen older guys like myself that had our hineys handed to us by business failures and be given hope and practical methods to pursue in order to regain some self-worth and a decent fico.

Think about it... There are bright law students, mortgage pros, retired kick-a@@ lawyers,brilliant "lay" people that have become skilled litigators....just for you! You asked for opinions, that's mine Peace

I agree......... I think you should put on your armor and get ready for battle. WIth all that good positive history and a decent job your accounts will probably eventually be sold to jdb's and with the right attorney you can get out for alot less then a bk will cost you...jmho

P.S. I know plenty well, maybe a half dozen people that had scores in the low 500's with 6 or 7 co and were in the 700's between 6 months and 2 years later.

Whatever you decide good luck!

[TheRoadBack]

Just to be clear I didn;t mean what the actual bk attorney would cost you but rather what the bk on your cr would cost you

[zwiepak]

Man, I can't believe I'm saying this but here goes. Credit repair isn't for sissies. It sounds like you want afirmation for a decision you've already made.

If you want to take on these bullies you're in the right place! You have at your disposal some incredible resourses complete with its own cheering section!When to send this, when to stop that, when to "go whacko" when to put your hat in your hand and be charming. I have read some throughly heart-warming and inspiring accounts in this forum, Single Moms fighting back from crappy marriages and crappy credit to grow to confident self-assured empowered women that really know how to kick butt and take names. I've seen older guys like myself that had our hineys handed to us by business failures and be given hope and practical methods to pursue in order to regain some self-worth and a decent fico.

Think about it... There are bright law students, mortgage pros, retired kick-a@@ lawyers,brilliant "lay" people that have become skilled litigators....just for you! You asked for opinions, that's mine Peace

You might be right on the decision part... What gets me though, as I tend to look at "worst case scenario" options, is getting sued for 6 CC's totaling what, 35K? Granted, if they "garnish", they can only get 25% (at least I think, there might be a slew of exemptions in that case) of my gross. I will admit, part of me is a lazy arse, but I think more importantly, what is the real benefit?

From all the research I've done, pull a 7 (for which I apparently qualify for), and 2-3 years later, you're on roughly the same level as everyone else with decent credit scores for mortgages, and cars are, apparently, even easier, although the rates seem to be a bit high from what I've read, somewhere between 10-17%. So I suppose, that might really be the question I'm asking, why bother with all the repair work, when there seems to be really no benefit for your time and efforts?

To frame this in the right perspective, please keep in mind, my "credit/bankruptcy" research is still in it's early stages, maybe 6 hours of solid research total...

[zwiepak]

Just to be clear I didn;t mean what the actual bk attorney would cost you but rather what the bk on your cr would cost you

Gotcha!

[Diehard]

Evidently you are in this forum to educate yourself in areas of credit that you are unfamiliar with. Have you read the post where someone said that they wished that they had found this site before they filed a bankruptcy. From what I know, it seems that creditors frown on anyone that files bankruptcy. It is almost as if they look at you as a deadbeat, a loser. No one wants to be viewed as such. No one will touch a credit app that you submit, and you have to wait before your bankruptcy is complete, and you get papers stating that. So, once again I say put some gloves on and fight. Get some letters together, and DV, (especially with CA's). Start your disputes on line. I know that the DV works. I sent out 4 letters and got 3 deleted, and my score increased 96 points. I still have a little ways to go, but this was my first attempt, and I am so proud of myself, because I created my own letters based on information that I learned from other postings.

It seems like you want to lay down, and give up before you even start. It did not take overnight for your situation to get like it is, and it won't take overnight to fix it.

As your life flashes before you, will yourself to Live, and FIGHT!!!! (DH)

Diehard

[LadynRed]

why bother with all the repair work, when there seems to be really no benefit for your time and efforts?

Ahh.. but you misunderstand the role of repair AFTER bankruptcy. If you want to get back into 700 land post-discharge, you are going to have to engage in credit repair and it's pretty much the same process as you would go through now.

You can't be lazy and think your scores will get to 700 on their own in a short time. My sister's score is in the 720's.. but her bankruptcy is 9 years old and she did no 'repair' .. we didn't know then what we know now.

[zwiepak]

Heh, seems like this is slowly moving me against the bankruptcy route... :)Well, let me put it this way, my enthusaism for fighting these clowns is slowly building. Just last night I did the inquiry thing... If that comes back as expected, I'm sure I'll be fired up.

[zwiepak]

Ahh.. but you misunderstand the role of repair AFTER bankruptcy. If you want to get back into 700 land post-discharge, you are going to have to engage in credit repair and it's pretty much the same process as you would go through now.

You can't be lazy and think your scores will get to 700 on their own in a short time. My sister's score is in the 720's.. but her bankruptcy is 9 years old and she did no 'repair' .. we didn't know then what we know now.

Well, if it's relatively the same on the back end, I think I'll give it at shot from what all have said so far, just last night I did an online dispute of my 6 negative TL's with TU...

[rella5]

for what its worth my husband and I had a very similar situation to yours. Long history and plenty goods, then the dominoes started falling and now there's about 9 accts ready to pounce. The BIG difference is we DID file CH13 in 2004 and the more I read this site the sorrier I am that we did. The main reason we filed was to protect our house and one other large business asset. PROBLEM now is, the BK pmnt ($2100./mo) has become unmanageable and I am a rebel who hates the Trustee "owning" us. Not excusing us for racking up the debt, but I wish I'd given negotiating with the OC's a chance. My husband stands to inherit some $ in a few months. We have decided to dismiss the BK and use the $ to negotiate with the creditors. Believe it or not it will cost less now to pay everyone (even if we have to pay the full amt which we probably won't) then if we continue the BK all the way to the end of a 5 yr plan. And the new rules will make it even harder for you. DO NOT BE HASTY! do a lot of research and soul search and calculating. And pay the consult fees to pick a good BK atty's brain.

[LadynRed]

If your DH is getting some money, DO NOT dismiss that bankruptcy ! Why ? Because the minimum term for a Ch 13 is 3 years. You cannot 'buy out' any sooner than 36 months. However, if you're in a 5 year plan, and you can make it to the 36 month minimum mark, you should be able to buy your way out of the remaining 2 years for LESS money than it will cost you if you dismiss !

Talk to your BK lawyer about this, you may save yourself a LOT of cash... AND keep the protection of the bankruptcy stay. If you dismiss, you lose that completely and could be sued in the time it takes you to negotiate with creditors who will be quick to tack on all the interest they haven't been allowed to charge since 2004.

[rella5]

I appreciate your response LIR, not intending to hijack this thread, but we are not able to make the $2100.00 per mo BK pmnts. my DH is 60 years old, not in great health and self employed; in the construction business which slows down this time of year. We've already missed several pmnts to the trustee and I don't know where we'll get this months pmnt. I understand the 36 month buyout concept- even a hardship discharge if you make it that far. I just don't see it happening. We are really between the devil and the deep blue sea. But I wanted the OP to think about negotiating with the creditors. I wish now we had tried that route. I think BK just got us in deeper.

[zwiepak]

Well, I've thought and read a WHOLE lot on this, and finally decided not to do it.

The primary reasons were this:

In no particular order, just the summation of all these variables:

1. a 13 is just too gestapo-ish for me. i don't like the idea of not being able to acquire credit for 5 years (and it would be 5 years in my case)

2. a 7 is more what I would do if I HAD to, but ladyinred informed me (which led me down that tangent of research) there will be credit repair to some extent ANYWAY after a 7, so why bother, seems little to gain, i've no problem getting a "private" cell, phone calls and letters won't jar me, and I'm not afraid of going to court (God knows how many tickets I've fought and won in my life! lol).

3. if the guano hits the fan and I get sued, they can only take 25% of my gross wages anyway, if it gets that far, i'll do all I can to settle and get that off as quick as possible.

[gypsie]

Well, I've thought and read a WHOLE lot on this, and finally decided not to do it.

The primary reasons were this:

In no particular order, just the summation of all these variables:

1. a 13 is just too gestapo-ish for me. i don't like the idea of not being able to acquire credit for 5 years (and it would be 5 years in my case)

2. a 7 is more what I would do if I HAD to, but ladyinred informed me (which led me down that tangent of research) there will be credit repair to some extent ANYWAY after a 7, so why bother, seems little to gain, i've no problem getting a "private" cell, phone calls and letters won't jar me, and I'm not afraid of going to court (God knows how many tickets I've fought and won in my life! lol).

3. if the guano hits the fan and I get sued, they can only take 25% of my gross wages anyway, if it gets that far, i'll do all I can to settle and get that off as quick as possible.

I followed this thread last week, and I'm so glad you've come to this decision!

As you see, many have been in your somewhat same situation. Including myself, and oh how I wish I'd never filed BK!

Good luck!

[Nikro]

I followed this thread last week, and I'm so glad you've come to this decision!

As you see, many have been in your somewhat same situation. Including myself, and oh how I wish I'd never filed BK!

Good luck!

Oh me too! Had I known. My debt was very managble however I was young, scared and being bullied.

I agree with the score ceiling with a pubic record as I am in that boat right now. Thank God my 10 years is in the final stretch.

Good luck, OP! You will do just fine.

[mattandallismom]

I filed a chapter 13 in 2002 and about 3 years later I was back in the 700's. My credit score is around 670 now because of our debt to income. It seems to take just as long as a chapter 7 but I'm not sure with the recent changes in bankruptcy laws if they are more similar now anyway.

[hopen4800]

I don't think debt-to-income is a factor in fico calculations. Were you thinking utilization ratio? Could be wrong but I thought d to i ratios were mortgage calcs only.

[rella5]

Maybe because you have a large number of debts with high balances? How would they know your income?