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Should I file for bankruptcy? Please assess.


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- I have been sued by NCO Portfolio for an old debt to AT&T Universal. I met with an attorney and we are using SOL defense. The SOL has expired in both California and Colorado. Will be removed from CR 9/2007. Last payment was in 9/2000 but NCO reporting that payment made in 4/2006 for $0.

- Have the following chargeoffs:

- AmEx - $4,500; will be removed late this year or early next year.

- Chase - $2,000; will be removed 3/2008

- Discover - $1,000; will be removed 11/2008

- Nordstrom - $800; will be removed 4/2009

- Wells Fargo - $700 ($1,243 w/interest); removed 4/2009

- Sears - $1,000 ($1,628 w/ interest); removed 4/2009 (this account is being reported by three other CAs.

- Student Loan account in rehab and should be in good standing in about 9 months.

If I can win the NCO lawsuit, I can negotiate with the other creditors using some 401k money I have. Is this advisable to take a loan out from my 401k to pay off these creditors? I want to buy a house soon.

If I lose to NCO, I think I will have to file for bankruptcy and rebuild from there.

I met with a BK attorney and she is not sure I will qualify for Chap 7. I may not pass the means testing because of my income. I don't make that much but I am single and with no real expenses that I can claim. I have a $600 car payment but it is in my father's name. so if I want to claim that expense I would have to disclose the car as an asset. I have less than a year left to pay off the car and the car is still valued at almost $29,000. (I know I should have purchased such an expensive car.)

I was a young stupid college student when I opened these accounts. There were circumstances that made it difficult for me to pay these accounts. I was not working. I just broke up with my boyfriend at the time (he helped me rack up the charges) and i was devastated. I thought life was over for me. I loss the will to live. I am now older and hopefully a little wiser about this and am in a better position in life. I just want a fresh start. I swear I will never take credit for granted again.

Is bankruptcy for me?

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Except for the car, you're only looking at about $10,000 in debt. That's not much to BK over. If SOL works for NCO, it looks to me like it might work for many of the others if you get sued.

I guess I'd say no to the BK. If you don't think you can come up with the cash to settle with everyone, I'd say just lie low until the SOL is up and they fall off your reports.

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