If you had a good c. Score, and not late

[dmc-2008]

yet on anything... and the possibility to eek by, would you reconsider getting a bk?

I have no bad credit yet. I am barely and I mean BARELY making it, actually a little in the hole each month, but somehow, I have managed to stay current and probably with some budget and starvation and a lot of unwanted NOs to my little one, I might be able to sustain.

I don't think I can pay any extra, and that is the bad part. But maybe, just maybe I can sustain for say 5 years and then the market turns back and I would be okay.

Would you do that if you could??? Please answer, I am really in a quandry here.
Thank you all so much for your input!

[FreshLikeADaisy]

DMC, my take on it is exactly the opposite: I held out and held out and held out, only to find that my situation and long-term financial picture would have been MUCH better than it is now, if I had filed as soon as I was eligible. And if you're concerned about credit score, I can only tell you that if you have good credit prior to bk, your score will recover that much more quickly afterward. It's the late pay and no pays that'll get you, whether you end up filing or not.

Sustaining (surviving) is okay for a time, but if that's the best outcome you can see on a long-term basis, all it takes is one little crisis to upset everything and you're in bk anyway; you've only prolonged your agony.

On the other hand, before you file, make *damn* sure that the discharge of your unsecured debt is going to put you in a better place post-bk, or it's just not worth it. If, after you subtract all the payments toward your dischargeable debt that you're making now from your monthly income, you're still only "sustaining", then no. Postpone bk until you address the deeper issues. But if post-discharge you would be in a position to actually save and thrive, then yes, consider going ahead and filing while your credit is still good.

It's a tough decision, I know. But you don't have to decide today. Think it over and try to keep an open mind both for and against. It'll come to you, what you need to do. Good luck!!!

[southernbelle]

Are you are barely eeking by and don't have savings that will tide you over if you have emergencies like unexpected car repairs, medical, the or price of gas doubling....AGAIN, then how will you make it? Staying current and maintaining a good credit rating is important, but if you find yourself in a bind, bk could be viewed as a viable option to help you regain financial freedom.

If I were you, I would possibly check some online sites for free information on how to set up a budget that will work for you each month. Also, make sure you set up some sort of savings and pay yourself first. Budgeting might help you if you aren't in significant debt already.

[itcaughtup]

yet on anything... and the possibility to eek by, would you reconsider getting a bk?

I have no bad credit yet. I am barely and I mean BARELY making it, actually a little in the hole each month, but somehow, I have managed to stay current and probably with some budget and starvation and a lot of unwanted NOs to my little one, I might be able to sustain.

I don't think I can pay any extra, and that is the bad part. But maybe, just maybe I can sustain for say 5 years and then the market turns back and I would be okay.

Would you do that if you could??? Please answer, I am really in a quandry here.
Thank you all so much for your input!

I filed on May 1st and was in the exact same situation, no lates, and a 703 middle credit score. Problem being the 84-90,000 in cc debt was killing me, while it's fully my fault that i got myself in this spot, I just couldn't continue to scrape the way I was, I'm in the early stages but my fico score only has dipped to around 600 so it's not as big of a disaster as I thought. While a 600 score is far from good it will be easier to recver from than say a 450 score that I was bound to have because I was going to have no choice but to start missing payments due to lack of funds, I would say do some research but it sounds like filing may be in your best interest..

[JollyGG]

DMC, my take on it is exactly the opposite: I held out and held out and held out, only to find that my situation and long-term financial picture would have been MUCH better than it is now, if I had filed as soon as I was eligible. And if you're concerned about credit score, I can only tell you that if you have good credit prior to bk, your score will recover that much more quickly afterward. It's the late pay and no pays that'll get you, whether you end up filing or not.

Sustaining (surviving) is okay for a time, but if that's the best outcome you can see on a long-term basis, all it takes is one little crisis to upset everything and you're in bk anyway; you've only prolonged your agony.

On the other hand, before you file, make *damn* sure that the discharge of your unsecured debt is going to put you in a better place post-bk, or it's just not worth it. If, after you subtract all the payments toward your dischargeable debt that you're making now from your monthly income, you're still only "sustaining", then no. Postpone bk until you address the deeper issues. But if post-discharge you would be in a position to actually save and thrive, then yes, consider going ahead and filing while your credit is still good.

It's a tough decision, I know. But you don't have to decide today. Think it over and try to keep an open mind both for and against. It'll come to you, what you need to do. Good luck!!!

Go back and read Fresh's post again, because she said exactly what I was thinking. Only, as usual, she said it better.

[JollyGG]

I filed on May 1st and was in the exact same situation, no lates, and a 703 middle credit score. Problem being the 84-90,000 in cc debt was killing me, while it's fully my fault that i got myself in this spot, I just couldn't continue to scrape the way I was, I'm in the early stages but my fico score only has dipped to around 600 so it's not as big of a disaster as I thought. While a 600 score is far from good it will be easier to recver from than say a 450 score that I was bound to have because I was going to have no choice but to start missing payments due to lack of funds, I would say do some research but it sounds like filing may be in your best interest..

I had a really good score pre-BK as well. I was starting to have trouble with increased rates and trouble getting loans because of my high debt to income ratio. The lowest my score went was 620. It has been a slow climb back and I really haven't checked it in about a year. But really if your only concern is your credit score - the damage probably won't be as bad as you feared.

Additionally, If you have a home already and reliable transportation then you have time for you credit to recover before you really need to use it again.

[dmc-2008]

Thanks to all.

I just think that the major debt, the 65K that is a secured loan won't be able to wipe off anyway. If not, than getting rid of a few other bills won't help, if I can't get rid of the major portion without selling my condo.

I don't want to do that! I live in so cal and rents are as high as my 1800.00 payment for my little dump.

[justplaintired]

Our credit was perfect, absolutely perfect before we decided to file. We knew that is was a matter of time. Like JollyGG we had a rate increase on a cc with a high balance and felt that the others would follow suit and when they did we would never be able to make those payments. We hated to lose our credit rating, DH was in the low 750's. That was alot of hard work getting that. Never being late, always paying on time. But we made this decision because when you can barely make the min payment and with increased rates, you probably can't even do that, it's time to make a life change, so we did. We do understand the importance of paying bills on time, that isn't our problem, it's having the means to do that, that's our problem.

We are now waiting to spend the stimulus and then we file. I am praying all will go well and we can get on with our lives.

Our credit will be bad, but even that we can fix down the road, to know that we will be out of this cc nightmare it's a small price to pay.With hard work and lots of patience we can do that over time. We are keeping our home both mortgage and fully intend to keep paying that bill on time. We have a plan. First thing we will try for is a car payment, even if it's a high interest rate, we can slowly rebuild our credit score, but cc our not going to be part of that plan. They sunk us once, they won't get another chance at us.

[Cali]

Well said FLAD!!

I was never late, had a 700+ credit score across the board and I lost my very well paid job. Rates went up which meant min. payments went up. I tried for almost a year to make it work with one income and I decided it was time to face reality. So we are filing C7 and to be honest, I don't care if my score goes down, at least I will be debt free and able to start over.

DMC, my take on it is exactly the opposite: I held out and held out and held out, only to find that my situation and long-term financial picture would have been MUCH better than it is now, if I had filed as soon as I was eligible. And if you're concerned about credit score, I can only tell you that if you have good credit prior to bk, your score will recover that much more quickly afterward. It's the late pay and no pays that'll get you, whether you end up filing or not.

Sustaining (surviving) is okay for a time, but if that's the best outcome you can see on a long-term basis, all it takes is one little crisis to upset everything and you're in bk anyway; you've only prolonged your agony.

On the other hand, before you file, make *damn* sure that the discharge of your unsecured debt is going to put you in a better place post-bk, or it's just not worth it. If, after you subtract all the payments toward your dischargeable debt that you're making now from your monthly income, you're still only "sustaining", then no. Postpone bk until you address the deeper issues. But if post-discharge you would be in a position to actually save and thrive, then yes, consider going ahead and filing while your credit is still good.

It's a tough decision, I know. But you don't have to decide today. Think it over and try to keep an open mind both for and against. It'll come to you, what you need to do. Good luck!!!

[dmc-2008]

My biggest concern is that the largest debt that I have is tied to my condo. I am not losing my condo. I want to stay here, I can't afford to go anywhere else, SO Cal is insane!

So if I find out that I cannot write off all the debt... I will not do it.

Today, I cancelled my gym and turned off my home phone. I have a cell. I made out a budget. Its tight, but if the sky does not fall, or until the sky falls, I can make it - maybe.

Will see what the ATTY says tomorrow. My hope is that I could stay put, pay my debts, and in 5 to 7 years, the real estate market turns around, I sell my condo and be debt free.

Maybe even have some equity. Who knows... its a thought.

Go check out www.dollarstretcher.com. Awesome site full of ways to save.

[Cali]

I live in SoCal.

My biggest concern is that the largest debt that I have is tied to my condo. I am not losing my condo. I want to stay here, I can't afford to go anywhere else, SO Cal is insane!

So if I find out that I cannot write off all the debt... I will not do it.

Today, I cancelled my gym and turned off my home phone. I have a cell. I made out a budget. Its tight, but if the sky does not fall, or until the sky falls, I can make it - maybe.

Will see what the ATTY says tomorrow. My hope is that I could stay put, pay my debts, and in 5 to 7 years, the real estate market turns around, I sell my condo and be debt free.

Maybe even have some equity. Who knows... its a thought.

Go check out www.dollarstretcher.com. Awesome site full of ways to save.

[dmc-2008]

Hi Cali,
then you know what I am talking about. Did you have a 2nd on your mortgage and a HELOC tied to it that you wanted to write off?? If I could get those taken off, it would be worth it. I am so, so tired of thinking about this whole mess morning, noon and night. I am really in a bind, like everyone else, I think I started to notice it a too late.

I am really fearful of having the world's noses in my personal business. This trustee stuff sounds just aweful, getting drilled and all that. Ugh. I guess I am just scared.

I will let you all know what the ATTY says today, but I have to tell you, I will probably cry the whole time and not hear a word! ;-(

[jerzey]

Barley making it is better then not making it
Keep the course IMO the R/E will come back

I had to file went from 6-8k a month on commissions to $12 an hour
spent my saving while trying to save our homes
But if i was had enough every month to get by I would not do a BK

[Cali]

IMO barely making it is stressful. I would rather know I am making it and my debts are taken care of(either with C7 or C13).

Barley making it is better then not making it
Keep the course IMO the R/E will come back

I had to file went from 6-8k a month on commissions to $12 an hour
spent my saving while trying to save our homes
But if i was had enough every month to get by I would not do a BK

[jerzey]

IMO barely making it is stressful. I would rather know I am making it and my debts are taken care of(either with C7 or C13).

To each their own, starting Over can be just as hard

Its just that Fanny and Freddie mac has stated to get a Prime loan after a Foreclosure they will now require 2 years and added % down depending on your market

so the 1 year out of BK with 10% down wont be allowed it will be more like 2-5 years out and 20-40% down

Or you could go sub-prime if you are risk taker