Hello everyone, I am new here and read a lot of the threads. This is a great place with a lot of helpful information. I am wondering if you can help me decide on whether to file or not considering the following circumstances(I did my best trying to keep it as short as possible, yet enough detail for you to be able to help me):
My story: Four years ago I was a newly wed, I had perfect credit, just bought a house, two cars, credit cards with limits in check, working a good job. One month after we purchased our home, my ex-wife left me and left the country leaving me with all the debt. Couldn't sell the house, or car, refinance or anything because everything was in both names and she refused to sign off on anything. I also went through a nasty depression, lost my job, and after a year struggling to keep everything together I had decided to let everything go, move in with parents, and file for bankruptcy. One year later I'm still debating whether to do it or not though I have already completed Chapter 7 papers once myself.
My consequences and current situation:
-My home went into foreclosure last year and auctioned off January 2010.(no balance after foreclosure)
-I lost my car in December 2009.($~5000 balance after repossession)
-Last credit card payment was also in late 2009.
-Last year I ended up in the hospital and racked up $4000 on an emergency visit.
I stopped paying everything as of December 2009 and I have roughly 24,000 in credit card and hospital bills, including interest and repo balance, and I work a part time job making roughly ~1,000 month desperately trying to find better work. I have considered paying everything back in payments, but considering my situation which is not improving, the health of my parents which is deteriorating, I do not realistically see myself paying back 24,000. Whatever extra money I may be able to make in the near future I'm going to need just to become self-sufficient again and basically survive as right now I'm heavily dependent on my family. The hospital bills in 2010 was the last time I had any NEW delinquencies though I am sure some of those have not hit as collections on my credit and expect them to appear this year.
Reasons for filing:
So for all intents and purposes, everything I do have is in collections. My reason for filing for bankruptcy(Chapter 7) would be to basically get rid of the debt that is in collections, avoid the risk of being sued, having wages garnished and begin re-establishing credit. I have nothing to salvage as I have already lost everything.
My dilemma:
A) It takes 7 years, lets say from today, assuming the final collection has hit, for everything to be wiped off my credit. But at that point I can actually obtain perfect credit and I would never have to answer yes to an employment application that asks if I have ever filed for bankruptcy. If I go this route however I know that I have to pray that for at least 3 years since the hospital bills in June 2010(2 more years), and 3 years since last credit payment in December of 2009(1.5 years to go) no one will sue me or take a judgment out against me. I understand they can still collect forever but if I ever decide to settle I can do it post-7 years mark.
B) I can file for Chapter 7, eliminate all debt as well as the risk of being sued and begin re-establishing credit soon after. I have already contacted all my creditors and told them that I would be filing for Chapter 7 and though I have not retained an attorney as I plan on doing it myself, it seems it pretty much stopped all collection calls. I will have to wait 10 years from either the date of filing or discharge(not sure) before putting everything behind me, but I can re-establish credit sooner. If I attempt to buy another house after bankruptcy however I am certain the extra interest I would be paying would probably double the amount of debt I currently owe over a 30 year mortgage.
My question:
Would you file and take the 10 year bankruptcy sting over $24,000 or lay low and ride it all out for 7 years and settle your debts after they can no longer affect your credit with whoever still chases?
My story: Four years ago I was a newly wed, I had perfect credit, just bought a house, two cars, credit cards with limits in check, working a good job. One month after we purchased our home, my ex-wife left me and left the country leaving me with all the debt. Couldn't sell the house, or car, refinance or anything because everything was in both names and she refused to sign off on anything. I also went through a nasty depression, lost my job, and after a year struggling to keep everything together I had decided to let everything go, move in with parents, and file for bankruptcy. One year later I'm still debating whether to do it or not though I have already completed Chapter 7 papers once myself.
My consequences and current situation:
-My home went into foreclosure last year and auctioned off January 2010.(no balance after foreclosure)
-I lost my car in December 2009.($~5000 balance after repossession)
-Last credit card payment was also in late 2009.
-Last year I ended up in the hospital and racked up $4000 on an emergency visit.
I stopped paying everything as of December 2009 and I have roughly 24,000 in credit card and hospital bills, including interest and repo balance, and I work a part time job making roughly ~1,000 month desperately trying to find better work. I have considered paying everything back in payments, but considering my situation which is not improving, the health of my parents which is deteriorating, I do not realistically see myself paying back 24,000. Whatever extra money I may be able to make in the near future I'm going to need just to become self-sufficient again and basically survive as right now I'm heavily dependent on my family. The hospital bills in 2010 was the last time I had any NEW delinquencies though I am sure some of those have not hit as collections on my credit and expect them to appear this year.
Reasons for filing:
So for all intents and purposes, everything I do have is in collections. My reason for filing for bankruptcy(Chapter 7) would be to basically get rid of the debt that is in collections, avoid the risk of being sued, having wages garnished and begin re-establishing credit. I have nothing to salvage as I have already lost everything.
My dilemma:
A) It takes 7 years, lets say from today, assuming the final collection has hit, for everything to be wiped off my credit. But at that point I can actually obtain perfect credit and I would never have to answer yes to an employment application that asks if I have ever filed for bankruptcy. If I go this route however I know that I have to pray that for at least 3 years since the hospital bills in June 2010(2 more years), and 3 years since last credit payment in December of 2009(1.5 years to go) no one will sue me or take a judgment out against me. I understand they can still collect forever but if I ever decide to settle I can do it post-7 years mark.
B) I can file for Chapter 7, eliminate all debt as well as the risk of being sued and begin re-establishing credit soon after. I have already contacted all my creditors and told them that I would be filing for Chapter 7 and though I have not retained an attorney as I plan on doing it myself, it seems it pretty much stopped all collection calls. I will have to wait 10 years from either the date of filing or discharge(not sure) before putting everything behind me, but I can re-establish credit sooner. If I attempt to buy another house after bankruptcy however I am certain the extra interest I would be paying would probably double the amount of debt I currently owe over a 30 year mortgage.
My question:
Would you file and take the 10 year bankruptcy sting over $24,000 or lay low and ride it all out for 7 years and settle your debts after they can no longer affect your credit with whoever still chases?
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