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How To Move Foward? Credit is a mess.

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A little history of how I got here:

Rebuild my credit back in 2006 to a 785 credit score, bought a house, had 100K plus in CC lines, good paying job and a second great paying job.

Fast forward to 2009 lost both my jobs started using credit cards for everyday living. Finally got a job in late 2110 making about 30% of previous income. So as you can imagine my credit is a mess, here are some of the major highlights.

 

1- Chrysler repo for 11K

2- Citibank CC judgment for 15K

3- 2 CC from penfed judgement for 65K (original amount was about 34K)

4- BOFA judgement for 10K

5- a couple of other small judgements and charge offs probably totaling maybe around 10K.

All accounts in good standing are closed, at the moment I have no CC's . MY score is 537 according to Discover(I applied just to get my score)

 

what would you recommend ? And no I cant afford to pay full amount on the judgements.

I thought about BK7 but would rather avoid it at all costs. Was thinking of going to a BK attorney and have him try to negotiate a settlement of about 10% on all my judgements. Do you think they will accept considering the alterative? or should I try a different strategy?

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Honestly, a BK would have been smart in 2009, but now? I don't know.

 

What state are you in and are you in a different state than where the judgement was obtained?

 

Do you know if the judgements were recorded?

 

Whychat has a method to remove judgements, but removing a judgement doesn't mean it isn't still valid, they can't collect, or it won't pop up during mortgage underwriting.

 

As far as BK and settlements go, some may settle, but others may just wait in hopes that you have assets some day. If they can renew indefinitely, then I would expect the PenFed judgement to refuse a 10% settlement, but who know really.

 

 

Sent from my iPhone using Tapatalk

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I'm From New York.

I was thinking of trying to vacate the judgements based on SOL using the Portfolio V King ruling which I think I fall under .

If successful using that method can they attempt to file for a judgement ? All my accounts with the acceptation of the repo fall under that ruling.

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You are over $100,000.00 in debt and you didn't want to declare BK ? Are you prepared for multiple lawsuits and garnishments ?

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  • back in 09 I was delusional , I thought I can get another job and pay my obligations. Fast forward 6 years later and my income is at 30 percent what it was then.

Should

could

didn't

that's why I'm in a pickle at the moment.

I wanted to hold on to BK as my Ace in the hole in case I needed it to save my house or major medical bills during my time out of work.

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If you still can breath, have 2 legs, two hands and energy to keep going, I support you did the best decision to to go BK7. I choose to wait for SOL. have to admit that some creditors try to find a loop around the 7 years, but this is a fight that I am willing to take.

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  • back in 09 I was delusional , I thought I can get another job and pay my obligations. Fast forward 6 years later and my income is at 30 percent what it was then.
  • Should
  • could
  • didn't
  • that's why I'm in a pickle at the moment.
  • I wanted to hold on to BK as my Ace in the hole in case I needed it to save my house or major medical bills during my time out of work.

 

I really don't like saying this but you really are better off filing.

 

At 30% of your previous income that is the best option.

 

You could get into arrangements and agreements but...

 

what happens if another personal financial crisis happens and you need to break one, some or all of the agreements?

 

Clean slate is what you need.

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I don't mean to sound uncaring about your situation. I just think the sooner you declare BK the better it will be for you and your family.

 

If it was just a few thousand dollars I could understand why you would want to hold off. This is a huge amount of debt and unless there is something you haven't told us IMHO BK is your ONLY option.

 

What ever you decide I wish you good luck.

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I know BK is the best route for me to take with this amount of debt. I guess I'm again in denial.

I was thinking if I can get the big one vacated base on PRA vs KING then the other debt could be possible to tackle.

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Keep in mind that the biggest complaint I hear about going the BK route is people wishing that they'd done it sooner. BK doesn't make you a failure as long as you can learn from your mistakes, and as you rebuild, only use credit when you already have the cash in the bank to pay it. BK is not the end of the world.

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