Please help me decide what to do

[bearzdb]

My goal is to get a home loan in two years which off these will give me the better chance.

I have 7 credit cards all showing charged off on my credit report they are all 2-3 years old. And off course the collection accounts show up.

Total Debt $15,000

Which option would help me achieve my goal

1. File chapter 7 (no asset)

2. Settle with the companies they are only willing to remove collections but the original accounts will stay charged off.

[sunshinepa]

I don;t believe anyone on this forum can actually make that decision for you. I will just say this.....my son just got his wages garnished from an account his ex wife opened in his name......they are now taking 50.00 a week from his paycheck and they have been divorced for over 9 years so the debt had to be that old at least. My question to you would be......do you want to take that chance? If you file a CH 7 you will discharge the debt and in my opinion only have a much better chance to get a home loan than if these cards stay on your report forever. Just my opinion.........I myself filed a CH 7 last month but I already have a home I am keeping.

Look at your options.....do you qualify for a CH 7?

Good luck.

[bearzdb]

ya qualify for chapter 7 should be no problem no asset and monthly income very low $692

[buffetbuster]

My wife and I just filed CH7. We currently have a mortgage (our starter home). One of our concerns was being able to get a mortgage after the BK is over, either CH7 or CH13, to buy our "final home". Our BK attorney told us that 2 years out of a bankruptcy, either CH7 or CH13, FHA will approve a mortgage and at a pretty good rate too.

[HHM]

Given the goal to buy house in 2 years

Chapter 7, hands down. It gives you certainty as to the status of debts and will cost less than settling.