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around six years or so ago, being young and foolish and having
excellent credit, i amassed about forty thousand dollars in credit
card debt. following this approach, when i was no longer able to keep
up with my payments, i just walked away from the whole thing. since
that time i've been living abroad and did not come to have to deal
with it. here i am now these years later and i would like to try and
clean up the mess but i'm not sure where to start.
from what i can see on my credit report, most of the accounts have
been sold to collections agencies who have in turn sold them to again
other agencies. all sorts of interest charges and late fees have been
tacked on, and one agency has filed a court judgment against me in new
york state where all of this is originally from.
i am considering bankruptcy because i cannot right now afford to pay
and i have no assets to speak of. it also seems to me that my credit
is so blown, it would not really make it any worse. i have considered
settling, but again money is an issue, and i have been told it would
not remove the record of my accounts being written off as bad debt.
on the other hand, i've been told that filing bankruptcy may not
protect against the judgment already filed, and i wonder if a
bankruptcy is ever truly removed even after the ten year period.
can anyone share some perspective on this?
david
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In article <aeeo90hspf67ifaupjqjbd8uqtmpdra82k@4ax.com>, dshenk
<dshenk66@yahoo.com> wrote:
on the other hand, i've been told that filing bankruptcy may not
protect against the judgment already filed, and i wonder if a
bankruptcy is ever truly removed even after the ten year period.
can anyone share some perspective on this?
Bankruptcy will fall off of your credit report after 10 years,
but it will dog you for the rest of your life. Creditors often
ask if you have EVER filed bankruptcy or defaulted on a loan
as part of their credit applications. You may also be asked this
for employment, and your car insurance may cost more than normal
due to bad credit.
It would be nice to avoid bankruptcy. In your case, do you have
a specific reason for doing so? Do you have a creditor breathing
down your neck, or another court case about to happen? If not,
I'd just let it sit. These things are going to start falling
off of your credit report, so your credit is going to improve
if nothing else. Consider staying stealth mode. If a creditor
does pick up on you, they know that they have little chance of
collecting anything after 7 years, so you are in a great position
to negotiate for pennies on the dollar. You can probably clean
up the entire $40K for just a few thousand. If you do make these
deals, make sure you get the deal in writing BEFORE you hand over
any cash.
-john-
--
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John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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on the other hand, i've been told that filing bankruptcy may not
protect against the judgment already filed, and i wonder if a
bankruptcy is ever truly removed even after the ten year period.
The fact of bankruptcy, and of the debts you discharged, will be shown
on your credit report for ten years
http://www.ftc.gov/bcp/conline/pubs/credit/bbcr.htm
(the rule is somewhat different for a Chapter 13 bankruptcy). This,
however, should not deter you from filing for bankruptcy if it is
otherwise in your interest to do so: based on what you have said, your
credit rating is now as low as it can be, and a discharge will reduce
the risk to anyone giving you credit thereafter. In real life, you
will be sent repeated invitations to (expensive) credit cards -- by
Providian among others -- just as soon as your bankruptcy case is
closed.
The only judgments and debts that outlast a bankrutpcy discharge (are
not dischargeable) are child support and most alimony, some taxes
(there's a so-called 3-year/240-day rule that you can Google if it is
relevant to you), student loans (with trivial exceptions) and many
fraud, criminal fine and restitution debts. Some of the latter may be
discharged in a Chapter 13.
Only a bankruptcy lawyer licensed in your state can give you
authoritative guidance. But you can reasonably start with the Nolo
Press book on bankruptcy
http://www.nolo.com
If you acquired assets or a pension abroad, or if you are married (and
especially if you have community property) then special knowledge may
be needed to advise you. A good lawyer can protect some or all of your
potentially-exempt assets, and can advise you on pre-bankruptcy
planning.
If you have no assets at all, then perhaps special insight is
unnecessary. But you must be sure to list, and to notify, all your
creditors (some of which you may have difficulty in finding, since the
claims were sold on). While unscheduled debts, too, are discharged in
a no-asset Chapter 7, you may be subjected to harassment and
litigation.
The holders of claims against you paid pennies on the dollar and
bought on pure speculation. You have niether legal or moral obligation
to such speculators to avoid bankruptcy.
Be careful not to incur debts in the months (90 days, especially)
prior to bankruptcy. Be aware that special, sometimes complicated,
rules apply to car loans, credit union accounts, and banks where you
have savings and loan accounts that may be offset.
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i am considering bankruptcy because i cannot right now afford to pay
and i have no assets to speak of. it also seems to me that my credit
is so blown, it would not really make it any worse. i have considered
settling, but again money is an issue, and i have been told it would
not remove the record of my accounts being written off as bad debt.
on the other hand, i've been told that filing bankruptcy may not
protect against the judgment already filed, and i wonder if a
bankruptcy is ever truly removed even after the ten year period.
can anyone share some perspective on this?
for one thing, as I noted in another recent post:
yes, it (bankruptcy) will appear for 10 years for most purposes; what many
people don't
realize is that it remains visible indefinitely where a transaction in
excess of $50k is involved or if the credit inquiry is made for employment
purposes and the annual salary will exceed $20k (see 15 USC 1681c)
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Tam wrote:
The fact of bankruptcy, and of the debts you discharged, will be shown
on your credit report for ten years
http://www.ftc.gov/bcp/conline/pubs/credit/bbcr.htm
(the rule is somewhat different for a Chapter 13 bankruptcy).
Could you explain the difference. Liz seemes to be saying that
the rules are the same.
--
This account is subject to a persistent MS Blaster and SWEN attack.
I think I've got the problem resolved, but, if you E-mail me
and it bounces, a second try might work.
However, please reply in newsgroup.
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yes, it (bankruptcy) will appear for 10 years for most purposes; what many
people don't
realize is that it remains visible indefinitely where a transaction in
excess of $50k is involved or if the credit inquiry is made for employment
purposes and the annual salary will exceed $20k (see 15 USC 1681c)
http://www.kansas.com/mld/kansas/business/8622247.htm
(full article: "Bad Credit: You Can get a Mortgage")
.....Lenders used to serve only people with impeccable credit --
so-called A loans. Now, says Myvesta, many serve B-level applicants, who
have good credit histories for the most recent 12 months but before then
may have missed a few payments on credit cards, student loans or their
mortgage.
B-loan applicants typically have to make larger down payments and pay
interest rates 1 to 2 percentage points higher than A-loan rates,
Myvesta says.
Some lenders will approve C loans, for people with clean records for 12
months but serious problems before then, such as multiple late payments
or even bankruptcy or foreclosure. Down payments must be even higher,
and interest rates may be as much as 3 points above the A-loan rate.
The D-loan customer -- someone with a foreclosure or bankruptcy in the
past 12 months -- has to make an even larger down payment and may well
be charged interest at double the A-loan rate, Myvesta says.....
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Tam wrote:
Could you explain the difference. Liz seemes to be saying that
the rules are the same.
Google is your friend:
http://www.mortgage101.com/partner-scripts/1001.asp?p=mtg101
The point is that with Chapter 13 the debtor commits him/herself to a
3- to 5-year plan, (with discharge granted when the plan is completed)
and the credit report will show the fact of the bankruptcy (and the
extent of debts written off) for 7 years thereafter. With a 7, the
period is 10 years from date of filing.
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