To file BK or not to file?
Which one looks worse on credit? I would think that both have to be negative on your report? If they are- then why not just do BK (chap7) and get it over with?I read in one of the messages that settlement can stay for 7 yrs and BK for 10. So for someone like me who has ZERO savings but wants to save up to buy a house because I just had 2 kids! and live in a tiny apt, why not just do BK and start saving money now? Instead of paying towwards a settlement for the nest 2-3 yrs and then start saving towards a house?
I completely agree with what CASHFLOW said about people not filing for BK when they should. I was that DUMMY who stopped working 2 years ago when I had my 2nd child (both kids have sensitive health issues)n BUT struggled for the past 2 yrs working PT jobs and 3rd shift jobs here and there just to pay my credit card bills! Now that I am fed up, always in a bad modd from stress, and completely exhausted, I come to realize I should have done BK a L-O-O-O-N-G time ago.
But I never heard of debt settlement til now so now it has become an option.
Again, advice please - not should I do one or the other. But which one will hurt me in the long run? If they both look bad equally, then I think I may just do BK because I am fed up and tired!
I've spoken to 2 BK lawyers and both claim the BK is not so bad anymore and credit cards offers will start coming in 1-2 yrs again because they want people who dont have debt. IM NOT SO INTERESTED in credit cards anymore cause Im not looking to get into the same mess. But I am interested in getting a house in 1-2yrs and also getting a job! How true is it that bad credit can look bad to an employer?
PLEASE HELP. THANKS!!!!!!!!
also: I JUST READ THAT Anything other than "paid in full" is bad. "Paid as agreed" is not good, and "paid -- charge off" or "paid -- collections" are both really bad. Finally, anything with the word "settled" in it goes in your credit file as an "R-9" code, which is a half-step above bankruptcy.
IS THIS TRUE?
Undecided, first off Welcome to the site. Why not register and t
Undecided, first off Welcome to the site. Why not register and take advantage of the free consultation (button on the right).
I have read that debt settlement can be looked at as just as bad as a BK, and you are right, they will be marked as "settled for less than the full amount".
Bankruptcy is obviously a very serious issue, I think you are making the right choice by obtaining legal advice but lets also remember they are BK attorneys so they do lean towards BK's as the fix all do all. Have they said you were eligible to file BK?
Without knowing what your debt situation is (how much, to who, types of accounts, and your ability to pay) it's going to be very difficult for anyone to give you advice.
Quote:
IM NOT SO INTERESTED in credit cards anymore cause Im not looking to get into the same mess. But I am interested in getting a house in 1-2yrs and also getting a job! How true is it that bad credit can look bad to an employer? |
If you plan on buying a house post BK you will still need to rebuild your credit so you will need credit cards to start the rebuilding.
In my experience bad credit really only effects jobs in finance and government and only a small amount of government jobs require good credit (part of certain back round checks)
hi undecided! i am really very sorry to hear about your situatio
hi undecided! i am really very sorry to hear about your situation. i hope your kids are fine. well, yes one thing is right that most creditors do not have a favorable impression on either settlement or bankruptcy, and it becomes very difficult to obtain fresh credit in the long run. as you said that you have no savings and you need to go in for any one, then i would go for bankruptcy. although it leaves a horrible mark on your credit report for the next 10 years or so, it at least gives you a chance to start afresh, specially someone like you who also have to look and fend for two kids. instead of paying the money to the settlement companies you can look after the kids. after all they are important than anything on earth. but still think about it once more before you finally decide to file.