Credit Repair or Ch7...again? Please help!

[Positivemotion]

I filed ch7 in 10/05 and was discharged in 1/06. Everything was going great and then I had several issues (job loss, family issues, etc.). I have been in debt for a few years now and I have been waiting for the day I could actually file ch7 again because I felt that was the only way out of this mess (which I was able to in 10/13). So you might ask, what is the problem? The problem is me and I ask for your assistance in helping me answer, should I file bk7 again? I have actually retained a lawyer and paid my partial retainer fee (which I will lose if I don't file but I still have the balance that is due on at my meeting on 5/23 to sign the paperwork and get started). I know I keep going back and forth with this decision but it it a hard decision. I really want to be bk FREE. Right now, I have the following accounts to deal with and I live in NV.

 

PR's (2)

Chapter bk - due to fall off 9/2015...finally!

2009 Tax Lien - received certificate of release and I sent a letter to IRS on 5/7/14 to remove it - pending

 

Collections (16 - all unpaid and the 1st 4 collections were actually were payday loan...ugh!)

MCI/Verizon - Cell $59 - due to fall off 11/2015...finally (not mine - disputed several times...always verified)Enhanced Recovery - Cable bill $212 - due to fall off 4/2016

Midland Funding - NFCU $7677 - due to fall off 8/2016

Enhanced Recovery - ATT bill $105 - due to fall off 11/2016

The CBE Group - Utility bill $226 - due to fall off 1/2017

Hunter Warfield - Rental/Leasing bill $2374 - due to fall off 6/2017

Progressive Mgmt - Medical $15,792 - due to fall off 8/2017

Allied Collection Svcs - Medical $676 - due to fall off 9/2017

Credit Bureau Central - Utility bill $99 - due to fall off 9/2017

Kenneth Eisen & Assoc - Cable bill $85 - due to fall off 9/2017

CMI - Medical $539 - due to fall off 10/2017

AD Astra Recovery - pay day loan $180 - due to fall off 8/2019

AD Astra Recovery - pay day loan $304 - due to fall of 8/2019

AD Astra Recovery - pay day loan $240 - due to fall off 8/2019

AD Astra Recovery - pay day loan $567 - due to fall off 8/2019

Sentry Recovery - Rental/Leasing bill $2968 - due to fall off 2/2020...ugh!!!!!!!

 

Charge-offs (13 - all unpaid)

Global Payments $535 - due to fall off 8/2015...finally ugh!

CCCU $2416 - due to fall off 6/2016

NFCU Visa $5226 - due to fall off 7/2016

NFCU MC $5173 - due to fall off 7/2016

NFCU MC (Joint) $7786 - due to fall off 7/2016 (possible duplicate from the Midland Collection above)NFCU LOC $0 - due to fall off 8/2016

Merrick Bank $2007 - due to fall off 11/2016

Barclays $2205 - due to fall off 12/2016

CreditOne Bank $0 - due to fall of 12/2016

Capital One $2497 - due to fall off 1/2017

NFCU car loan $0 - due to fall off 10/2017

NFCU truck loan $0 - due to fall off 12/2017

First Premier $918 - due to fall off 11/2018 (this account has been rehabbed with a $900 CL)

 

Satisfactory Accounts (14)

Applied Bank - closed by consumer

Aspire - closed by consumer

Barclays - closed by consumer (merged my Carnival with USAir yet the end result was a charge off above)

CreditOne - card lost or stolen (yet the end result was a chargeoff above)

Crown Jewelers - closed

GM Financial - closed (4 accounts like this)

HSBC Bank - account closed by consumer (too bad Cap1 charged off above since they bought them)

Kay Jewelers - inactive account closed

NFCU LOC - closed by credit grantor

Sallie Mae - closed

Target - account closed by consumer

 

Good news:

I put in a dispute for 1 medical bill and it fell off as well as 3 other baddies I did not dispute and I was removed from a AU Chase account that was a baddie as well. That's 5 accounts gone so far.

 

Bad news:

In addition, I have a current title loan for about $1400 I need to finish paying off (it's on a old 2001 car that barely runs) as well as the last of my student loans which are about $1200. I could use the rest of the year to pay these 2 accounts off as soon as possible. I keep hearing how easy Enhanced Recovery is to work with on the DV but what about the other collections. I have been a member of this board since 2006 (I believe) and I rebuilt my credit after the last bk but this is somewhat harder but I am up for the challenge. I just need a little help to get me going in the right direction. Is there help for me? Please forgive the long post.

 

Goal: Rebuild credit (750+) and buy a home in 3 years (need to start saving immediately).

[Positivemotion]

I forgot to add that I have a $7k used car loan as well as fingerhut & crown jewelers but have not made a purchase. I welcome all helpful comments and thank you in advance.

[moosetracks]

Its going to depend on what your current income is and if you are expecting any further medical problems in the forseeable future.. ???

[Positivemotion]

Its going to depend on what your current income is and if you are expecting any further medical problems in the forseeable future.. ???

My income is about 45 & I do not expect any further medical problems in the foreseeable future. Hopefully that helps.

[moosetracks]

I get 31882 in Collections and 28763 in COs including the poss duplicate of Midland Funding, that is 60645. This certainly qualifies for BK IMO. If you want to buy a home in 3 yrs anything that is still on file is going to have to be settled in full prior to close so that is another variable here. Its a hard one to call, personally I would not have retained a lawyer until I was sure I was going to do it as that money will be lost and could have been used to pay off some debt. Its neither here nor there at this point. You are paying on 2 car notes as well along with small amount of SL debt that cant be discharged. If you are single and alone you may be able to pull it off but if you have a family I dont think its possible and would file the BK.

[DollarDog]

How do you plan to save money for a house going forward after having filed 2 bankruptcies? What will change with your finances and lifestyle that will change your financial picture from one of debt to one of savings?

[Positivemotion]

I get 31882 in Collections and 28763 in COs including the poss duplicate of Midland Funding, that is 60645. This certainly qualifies for BK IMO. If you want to buy a home in 3 yrs anything that is still on file is going to have to be settled in full prior to close so that is another variable here. Its a hard one to call, personally I would not have retained a lawyer until I was sure I was going to do it as that money will be lost and could have been used to pay off some debt. Its neither here nor there at this point. You are paying on 2 car notes as well along with small amount of SL debt that cant be discharged. If you are single and alone you may be able to pull it off but if you have a family I dont think its possible and would file the BK.

This is what I was thinking. I have a family of 3 total and I do want to be able to buy a house in 3 years. I am in the process of filing as I do have my meeting on May 23rd. I am only paying 1 car note ($7k) but its over a decade old and the apr (30) is rediculous but I needed a car and they were the only people to finance me. This car just started reporting this month but will be included as well. It seems bk is the only way unless nfcu will settle for little to nothing and I dont see them doing that.

Edited May 16, 2014 by Positivemotion

[Positivemotion]

If I do file, how soon can they repo the car as I would need to buy a bucket off CL for the time being?

[moosetracks]

 

I get 31882 in Collections and 28763 in COs including the poss duplicate of Midland Funding, that is 60645. This certainly qualifies for BK IMO. If you want to buy a home in 3 yrs anything that is still on file is going to have to be settled in full prior to close so that is another variable here. Its a hard one to call, personally I would not have retained a lawyer until I was sure I was going to do it as that money will be lost and could have been used to pay off some debt. Its neither here nor there at this point. You are paying on 2 car notes as well along with small amount of SL debt that cant be discharged. If you are single and alone you may be able to pull it off but if you have a family I dont think its possible and would file the BK.

This is what I was thinking. I have a family of 3 total and I do want to be able to buy a house in 3 years. I am in the process of filing as I do have my meeting.on May 23rd. I am only paying 1 car note ($7k) but its over a decade old and the apr (30) is rediculous but I needed a car and they were the only people to finance me. This car just started reporting this month but will be included as well. It seems bk.is the only way unless nfcu will settle for little to nothing and I dont see them doing that.

 

 

Oh I thought you said you had a title loan for 1400 so I thought that meant 2 car payments. Even so with just 1, 45K for a family of 3 I would be filing and not thinking twice about it. If you file and intend to give back the car I would expect you will have no more than 60 days, they will probably move to have the automatic stay lifted at least thats how it went with me when I stopped making the payments and checked the not reaffirming box...

[Positivemotion]

Ok. My payments are due one the 2nd of the month. The lawyer will actually file with the court the following Thursday, May 29th. How soon will my finance company get notice of the bk? Also, you said 60 days so is that from the actual file date? If they get the stay vacated, hiw soon can they get the car? I am trying to find out how much time I have to save.

[Positivemotion]

Also what happens to the title loan and that car? Will they pick that car up as well? They actually have the title and I want to be rid of that car as well.

[LKH]

How do you plan to save money for a house going forward after having filed 2 bankruptcies? What will change with your finances and lifestyle that will change your financial picture from one of debt to one of savings?

I fail to see what filing bk has to do with saving money. A bk will change the finances instantly.

BTW - welcome back gwennie. I'm watching.

[RedHairedLady]

 

 

 

I get 31882 in Collections and 28763 in COs including the poss duplicate of Midland Funding, that is 60645. This certainly qualifies for BK IMO. If you want to buy a home in 3 yrs anything that is still on file is going to have to be settled in full prior to close so that is another variable here. Its a hard one to call, personally I would not have retained a lawyer until I was sure I was going to do it as that money will be lost and could have been used to pay off some debt. Its neither here nor there at this point. You are paying on 2 car notes as well along with small amount of SL debt that cant be discharged. If you are single and alone you may be able to pull it off but if you have a family I dont think its possible and would file the BK.

This is what I was thinking. I have a family of 3 total and I do want to be able to buy a house in 3 years. I am in the process of filing as I do have my meeting.on May 23rd. I am only paying 1 car note ($7k) but its over a decade old and the apr (30) is rediculous but I needed a car and they were the only people to finance me. This car just started reporting this month but will be included as well. It seems bk.is the only way unless nfcu will settle for little to nothing and I dont see them doing that.

Oh I thought you said you had a title loan for 1400 so I thought that meant 2 car payments. Even so with just 1, 45K for a family of 3 I would be filing and not thinking twice about it. If you file and intend to give back the car I would expect you will have no more than 60 days, they will probably move to have the automatic stay lifted at least thats how it went with me when I stopped making the payments and checked the not reaffirming box...

Some auto lenders will file to have the automatic stay lifted, some won't. My husband and I surrendered a vehicle in our recent bankruptcy. The lender didn't come to get it until a week after our discharge.

[Positivemotion]

How do you plan to save money for a house going forward after having filed 2 bankruptcies? What will change with your finances and lifestyle that will change your financial picture from one of debt to one of savings?

I would love to pay off all my debts in cash today but that is highly unlikely. As you can see from.my post, I do not WANT to file bk but it looks like it may just be the best option for me. I am not sure how long my family will be a total of 3 also so I am taking that into consideration also. If I file, some of my monthly payments go away and will use that money and all other extra funds for my house. My credit is shot either way. At least with the bk I can start saving immediately and start rebuilding again. In 3 years, I should be good to go.

[LKH]

 

How do you plan to save money for a house going forward after having filed 2 bankruptcies? What will change with your finances and lifestyle that will change your financial picture from one of debt to one of savings?

I would love to pay off all my debts in cash today but that is highly unlikely. As you can see from.my post, I do not WANT to file bk but it looks like it may just be the best option for me. I am not sure how long my family will be a total of 3 also so I am taking that into consideration also. If I file, some of my monthly payments go away and will use that money and all other extra funds for my house. My credit is shot either way. At least with the bk I can start saving immediately and start rebuilding again. In 3 years, I should be good to go.

 

If you stick around and do things right after a possible bk, it may not even take 3 years to get a mortgage. It is very possible to do it in 2 years.

Also, don't feel any obligation to answer questions that have nothing to do with the subject at hand or about personal issues. AFAIC, the above question was out of left field and not worthy of answering.

[Positivemotion]

 

 

How do you plan to save money for a house going forward after having filed 2 bankruptcies? What will change with your finances and lifestyle that will change your financial picture from one of debt to one of savings?

I fail to see what filing bk has to do with saving money. A bk will change the finances instantly.

BTW - welcome back gwennie. I'm watching.

LKH...Exactly! My finances would change immediately. I have been in debt for years. I am not looking to rack up a bunch of debt again. I just want a couple of secured rebuilder cards and to save for a house for me and my son. I figure if I get on the right track now, my son will have less worries when he is trying to get his life together if he does not have to worry so much about me. I am trying to look at where I want to be in the next 10-20 years and it starts with today. The first time I filed, I did not gave the knowledge I should have had and I did things without thinking them through. Although nfcu was a blessing, it was a nightmare also. I did not manage things right and I was newly married. I wanted to give my child the childhood I did not have but I went about it the wrong way. Between that and a trial separation from my possibly sonon to be ec at the time in addtion to leaving a higher paying job in Cali for my sanity, this is what led me here. I now see the errors in my ways and going forward, I will fix them. Sorry for the book.

[Positivemotion]

 

 

 

 

I get 31882 in Collections and 28763 in COs including the poss duplicate of Midland Funding, that is 60645. This certainly qualifies for BK IMO. If you want to buy a home in 3 yrs anything that is still on file is going to have to be settled in full prior to close so that is another variable here. Its a hard one to call, personally I would not have retained a lawyer until I was sure I was going to do it as that money will be lost and could have been used to pay off some debt. Its neither here nor there at this point. You are paying on 2 car notes as well along with small amount of SL debt that cant be discharged. If you are single and alone you may be able to pull it off but if you have a family I dont think its possible and would file the BK.

This is what I was thinking. I have a family of 3 total and I do want to be able to buy a house in 3 years. I am in the process of filing as I do have my meeting.on May 23rd. I am only paying 1 car note ($7k) but its over a decade old and the apr (30) is rediculous but I needed a car and they were the only people to finance me. This car just started reporting this month but will be included as well. It seems bk.is the only way unless nfcu will settle for little to nothing and I dont see them doing that.

Oh I thought you said you had a title loan for 1400 so I thought that meant 2 car payments. Even so with just 1, 45K for a family of 3 I would be filing and not thinking twice about it. If you file and intend to give back the car I would expect you will have no more than 60 days, they will probably move to have the automatic stay lifted at least thats how it went with me when I stopped making the payments and checked the not reaffirming box...

Some auto lenders will file to have the automatic stay lifted, some won't. My husband and I surrendered a vehicle in our recent bankruptcy. The lender didn't come to get it until a week after our discharge.

Great as I am hoping to save as much as possible before they pick it up. Sad to see it go but this is for my future and start to new life.

[Positivemotion]

Also, I forgot to add I have $9k left due to the IRS which is another monthly payment. My attorney claims these can be discharged in the bk as well which would be fantastic. As stated above, I received a release for the tax lien and I sent a letter to have it removed. Once the IRS gets wind of it, will they automatically so no to removal of the lien? I am hoping they will approve my request. I am not sure if this would be a part of their decision to remove the lien.

[Positivemotion]

Also, in reference to all the unpaid accounts above, if you file bk, does the date to fall off your reports stay the same? I cant seem to remember this. For example, if ATT was scheduled to fall off in may 2015, after it becomes IIB, does it still fall off in may 2015? I hope that made sense.

[nysbadmk8]

I would BK7, thats a long list.

 

I would also seek to join a financial peer group, or consulting.

 

I wish you luck.

Also, I forgot to add I have $9k left due to the IRS which is another monthly payment. My attorney claims these can be discharged in the bk as well which would be fantastic. As stated above, I received a release for the tax lien and I sent a letter to have it removed. Once the IRS gets wind of it, will they automatically so no to removal of the lien? I am hoping they will approve my request. I am not sure if this would be a part of their decision to remove the lien.

 

 

I doubt this is true, But in certain circumstances it might be.

[RedHairedLady]

I would BK7, thats a long list.

 

I would also seek to join a financial peer group, or consulting.

 

I wish you luck.

 

 

Also, I forgot to add I have $9k left due to the IRS which is another monthly payment. My attorney claims these can be discharged in the bk as well which would be fantastic. As stated above, I received a release for the tax lien and I sent a letter to have it removed. Once the IRS gets wind of it, will they automatically so no to removal of the lien? I am hoping they will approve my request. I am not sure if this would be a part of their decision to remove the lien.

 

I doubt this is true, But in certain circumstances it might be.

Federal taxes can be discharged in bankruptcy, in certain circumstances, depending on when the tax returns were filed, and when the taxes came due. How old are the taxes you still owe?

[chugs102]

 

 

How do you plan to save money for a house going forward after having filed 2 bankruptcies? What will change with your finances and lifestyle that will change your financial picture from one of debt to one of savings?

I would love to pay off all my debts in cash today but that is highly unlikely. As you can see from.my post, I do not WANT to file bk but it looks like it may just be the best option for me. I am not sure how long my family will be a total of 3 also so I am taking that into consideration also. If I file, some of my monthly payments go away and will use that money and all other extra funds for my house. My credit is shot either way. At least with the bk I can start saving immediately and start rebuilding again. In 3 years, I should be good to go.

 

If you stick around and do things right after a possible bk, it may not even take 3 years to get a mortgage. It is very possible to do it in 2 years.

Also, don't feel any obligation to answer questions that have nothing to do with the subject at hand or about personal issues. AFAIC, the above question was out of left field and not worthy of answering.

 

 

 

It's not out of left field at all.

 

If a person is in such financial distress that requires a BK (and I've been in that situation), what will he/she do to improve that situation? A BK can discharge most of those debts but the OP also needs to assess his/her situation more critically. How will the OP avoid a similar situation going forward?

[Positivemotion]

I would BK7, thats a long list.

 

I would also seek to join a financial peer group, or consulting.

 

I wish you luck.

Also, I forgot to add I have $9k left due to the IRS which is another monthly payment. My attorney claims these can be discharged in the bk as well which would be fantastic. As stated above, I received a release for the tax lien and I sent a letter to have it removed. Once the IRS gets wind of it, will they automatically so no to removal of the lien? I am hoping they will approve my request. I am not sure if this would be a part of their decision to remove the lien.

 

 

I doubt this is true, But in certain circumstances it might be.

Thank you. My head is on straight now but I still have to pull myself out of this whole. Also, I believe if the taxes are 3 years old, it may be possible to IIB.

[Positivemotion]

 

I would BK7, thats a long list.

 

I would also seek to join a financial peer group, or consulting.

 

I wish you luck.

Also, I forgot to add I have $9k left due to the IRS which is another monthly payment. My attorney claims these can be discharged in the bk as well which would be fantastic. As stated above, I received a release for the tax lien and I sent a letter to have it removed. Once the IRS gets wind of it, will they automatically so no to removal of the lien? I am hoping they will approve my request. I am not sure if this would be a part of their decision to remove the lien.

 

I doubt this is true, But in certain circumstances it might be.

Federal taxes can be discharged in bankruptcy, in certain circumstances, depending on when the tax returns were filed, and when the taxes came due. How old are the taxes you still owe?

 

2009 (owe $2500) and 2010 (owe $6500...I still don't even see how this is possible). Hopefully I can have them discharged. I am hoping this would not affect the removal of the tax lien.

[Positivemotion]

 

 

 

How do you plan to save money for a house going forward after having filed 2 bankruptcies? What will change with your finances and lifestyle that will change your financial picture from one of debt to one of savings?

I would love to pay off all my debts in cash today but that is highly unlikely. As you can see from.my post, I do not WANT to file bk but it looks like it may just be the best option for me. I am not sure how long my family will be a total of 3 also so I am taking that into consideration also. If I file, some of my monthly payments go away and will use that money and all other extra funds for my house. My credit is shot either way. At least with the bk I can start saving immediately and start rebuilding again. In 3 years, I should be good to go.

 

If you stick around and do things right after a possible bk, it may not even take 3 years to get a mortgage. It is very possible to do it in 2 years.

Also, don't feel any obligation to answer questions that have nothing to do with the subject at hand or about personal issues. AFAIC, the above question was out of left field and not worthy of answering.

 

 

 

It's not out of left field at all.

 

If a person is in such financial distress that requires a BK (and I've been in that situation), what will he/she do to improve that situation? A BK can discharge most of those debts but the OP also needs to assess his/her situation more critically. How will the OP avoid a similar situation going forward?

 

As stated above, the first time I filed, I did not have the knowledge I should have had and I did things without thinking them through. Although nfcu was a blessing, it was a nightmare also but it was my fault because I did not manage things right from the start. I was doing great at one point and then I let other things cloud my judgement and I know this but I kept going like everything was going to fix itself and I regret that. This time, I will take charge of my life, stick with CB and stay updated with knowledge about my credit, I will look out for ME this time which in turn will help my son and I will make better financial decisions instead of doing things on a whim. In my life, I never thought I would file bk let alone 2. This was NOT the plan.