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hangloose

I need help please, I'm desperate

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(if I posted this incorrectly I apologize)

 

Without a long drawn out story I'll just quickly lay out the facts:  Had a great mid-700's score a year ago, now i'm low 500's. I'm a 32 year old homeless vet with about $28K in debt. I currently work part time and attend school fulltime (paid for through pell grant and I was awarded a small scholarship)

 

I'm debating whether to file Chapter 7 or dispute everything (I've been reading about the letters, and the jack attack)

 

I'm just so lost. One minute Ch7 sounds like a great idea, but then I remember the consequences that can come when I am in a financial place to look for residence, then the next minute I'll think GREAT! I'll just dispute everything and hope it gets removed so my score improves dramatically (and hope the removals don't come back)

 

I'm in a unique position now where either option seem good. I can provide more clarity on my situation as well, I'm just embarrassed at having to be writing this post in the first place.

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First of all, thank you for your service. This sounds like a terrible situation.


You are going to need to list the actual debts. The type of debts (medical, credit card, auto loan, etc.), the status (open/closed, delinquent, charged off, in collections), and the name of the creditor(s) will help determine the best way to attack the situation. 

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9 hours ago, hangloose said:

(if I posted this incorrectly I apologize)

 

Without a long drawn out story I'll just quickly lay out the facts:  Had a great mid-700's score a year ago, now i'm low 500's. I'm a 32 year old homeless vet with about $28K in debt. I currently work part time and attend school fulltime (paid for through pell grant and I was awarded a small scholarship)

 

I'm debating whether to file Chapter 7 or dispute everything (I've been reading about the letters, and the jack attack)

 

I'm just so lost. One minute Ch7 sounds like a great idea, but then I remember the consequences that can come when I am in a financial place to look for residence, then the next minute I'll think GREAT! I'll just dispute everything and hope it gets removed so my score improves dramatically (and hope the removals don't come back)

 

I'm in a unique position now where either option seem good. I can provide more clarity on my situation as well, I'm just embarrassed at having to be writing this post in the first place.

Keep in mind that bankruptcy isn’t a panacea.  It can cause issues in the future that many people do not consider in the present – for example, I work in management in the finance sector and filed bankruptcy 12+ years ago.  I have been denied at least one job opportunity in the past 2 years due to my prior bankruptcy (though my scores are in the high 700’s/low 800’s now).   Additionally, it can cause embarrassment as many professional licenses, certifications, and/or bonds require ANY bankruptcy to be disclosed on the applications – regardless of time-frame, so depending on your future career goals it could be a cloud that always follows you. 

Additional things to consider when deciding if bankruptcy is viable, is to list any assets that you own (real property, non-retirement savings, automobiles), as you run the risk of surrendering hose if the values exceed the protected amount(s). 

I appreciate your service and I’m sure you will receive solid advice on here once more details are shared as to which route makes most sense for you in both the short and long-term.

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Disputing debts inside of SOL can be a quick way to multiple lawsuits and judgements.

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Thank you for the information Gerray, that was what I'm most afraid of with a BK...

 

Shifter - how likely are lawsuits and judgements??

 

Here are my debts:

 

NFCU - In collection/charge-off, (credit card) Last payment Dec 5, 2018

NFCU - In collection/charge-off,  (auto, but they sent me the title. They said if I didn't return the title it would be converted to a personal loan/unsecured loan at a higher interest rate, so essentially another credit card. I sold the car long ago.) Last payment: Dec 20, 2018

JPMCB Card Services - In collection/charge-off (credit card) Last payment Jul 13, 2018

JPMCB Card Services - In collection/charge-off, (credit card) Last payment Jul 13, 2018

Capital One - In collection/charge-off, (credit card) Last payment Sep 12, 2018

 

 

 

Edited by MarvBear

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If there is nothing else on the horizon for you money wise, go and see a couple of BK attys.

 

They will give you free consults, and if any stress that you must FILE NOW, walk right out.

 

You appear to be judgment proof, meaning nobody can take anything in most states.

 

Since you have the car title, you might be in the clear for that, but it is an asset in a BK scenario.

 

Best of luck, and always remember, this is a business decision, and don't attach any self-worth to the decision.

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Thank you for the advice Whipster, can you elaborate on "you appear to be judgment proof" please??

 

Also, I HAD the title, I sold the car 1.5 years ago and continued paying on the loan until I couldn't any longer..

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Also, can anyone enlighten me more on what Shifter said? " Disputing debts inside of SOL can be a quick way to multiple lawsuits and judgements."

 

Is this likely if I dispute my TL debts?

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Okay I've done more research and this is what I've found: All of my debt (except for the $4,895 NFCU) is credit card debt, thus revolving credit account. I'm located in WA state and through WhyChat's website I found we have a 3 year SOL on revolving accounts(including credit cards), unless I'm mistaken, I can't be sued after the SOL is up in Dec 2021?

 

Unfortunately Shifter, I've done several disputes via Credit Karma and through the Experian website. They've all come back verified, etc... I'm just going to hold off on that now and wait and see if NFCU comes at me. I surely hope not...

 

Does anyone have any other advice? NFCU sent me a letter months ago saying they'd settle for ~40% of what I owe on the CC but it's a lump sum... The other high balance CC's have also sent me settlement letters as well for about ~50% of total owed as well, again lump sum (which I don't have)

 

Thank you for any advice

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Hi, can a Moderator please edit my post with the amounts of my debts please?? I don't know why this site doesn't allow you to edit posts after 30 minutes, but I'm afraid now that I put too much information online.

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You aren't going to get this stuff removed just because you want a good credit score, it doesn't work that way. There are very few reasons that result in removal; you would have to literally prove the debt is not yours.

BK isn't the worst thing that can happen, you should consider it. Do you really think having a lender see that on your report would be any worse than having them see a string of chargeoffs and judgments? If you let all these entities sue you, which is highly likely, that 28K will increase by another ten K due to legal fees and court costs. That will also impact your ability to get a job. No prospective employer wants to be bothered processing garnishments.

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Thank you for your advice legaleagle, I've been lurking here for sometime and it seems like a vast majority of people here dispute items on their credit report in the attempt to have it removed. The jack attack method deals with this very efficiently it seems. I've also taken another poster's advice and looked into civil lawsuits in my county and nearby counties and it looks like I'm in the clear for being sued, as they haven't sued anyone in my area since 2014 and even then it was dismissed. It's still a possibility but I'm feeling very relieved considering how i was feeling just a few days ago

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You can buy a home va no money down 2 years from discharge.... apartments look for prior unpaid rent.... file the 7....

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I don't have any evictions or prior unpaid rent, just the credit cards. I'm feeling much better about the SOL on CC's in my state being only 3 years

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Judgement proof means it's not worth the trouble and expense of suing you because you have no significant money or assets for the creditor to seize/garnish/etc.  But judgement proof status can change over time.

 

Disputing debts inside statute of limitations can often trigger legal action, such as lawsuits, which in your case would likely result in judgements. The judgements would extend well past your state's statute of limitations and could be renewed even when they reach their expiry date -- typically 7 - 10 years out.  

 

Give the number and types of accounts you listed and the amounts owed, I think it is likely you would be sued on at least one or two of the debts well before they reach the 3-year statute of limitations in your state.  Even if you're considered judgement proof now, you won't always be, and with judgements the junk debt buyers who ultimately will buy these debts and take you to court will be able to force payment far down the road.

 

The settlement offers you mentioned sound reasonable, if you can pull together enough money.  Or if these debts are still with the original creditors you might be able to claim hardship and get them to work out a low monthly payback plan.  I agree with some of the opinions above that you should have consultations with 1-3 BK attorneys and get some professional legal advice.  You'll be able to make a more informed decision on how to proceed.

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Thank you for the update legaleagle, I know this site endorses “whychat” and even on his website it states credit cards as an open-ended account which would be 3 years in WA. I called the WA State Legislation office and they’re going to look into it and call me back when they find out more info. I’ll update once I hear back from them 

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So the guy I called at the legislature office called me back and basically said “I don’t know, maybe call the AG but he’ll probably refer you back to me. Perhaps contact an attorney that’s good with state laws”

 

so no help there either..

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14 hours ago, legaleagle2012 said:

Revised Code of Washington 4.16.040  sets an SOL of 6 years for written contracts. Credit cards all have written contracts. Years ago there was some confusion about open accounts, but since then the courts have been applying the 6 year SOL. Virtually every WA lawyer on line says 6 years as well.

Same thing in Georgia.  SOL is 4 years for revolving accounts like credit cards but 6 years for written contracts. AMEX sued a debtor in state court and got a precedent-setting verdict that the 6-year SOL applies, not the 3-year.

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Hi Burdell, 

So it looks like WA state is NOT 3 years but is indeed 6 years without a doubt?  Shoot...

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Probably.  It depends.  In Georgia it's because of case law from a court decision that overrides the statutes.  Could be different in Washington State, but I doubt it. You really should set up a consultation appointment with 2 or 3 BK attorneys -- they'll know, and they can advise you on your options and the pros/cons of each.  Check their ratings and choose them carefully.  If one of them tries to pressure you into a hasty decision, walk out.

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On 10/19/2019 at 4:09 AM, Burdell said:

Probably.  It depends.  In Georgia it's because of case law from a court decision that overrides the statutes.  Could be different in Washington State, but I doubt it. You really should set up a consultation appointment with 2 or 3 BK attorneys -- they'll know, and they can advise you on your options and the pros/cons of each.  Check their ratings and choose them carefully.  If one of them tries to pressure you into a hasty decision, walk out.

I'd like to avoid bankruptcy if at all possible. From what I've read and researched, Navy Fed doesn't seem too sue-happy in my area at least, and I've only seen one post (on another forum) where NFCU sold the debt to a JDB

 

I've been successful with a few things thus far, but finding a definitive answer to the SOL in WA state is getting frustrating. "Why Chat" is lauded as a credit god here, but his information seems to be based solely on his interpretation of the law and one website he cites, however I HAVE seen several other "credit" websites that say WA state SOL is 3 years based on "open-ended accounts/revolving accounts"

 

Is there a way to find ANY civil lawsuit where a 3 year SOL for credit card debt was used in WA???

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Spend three days reading WA cases on Google Scholar. That sort of issue is procedural and is usually disposed of early on by motion. You claim SOL as a defense, the other side moves to strike the defense, and you get a decision from the court. Such issues are rarely the stuff of what appeals are made of. Virtually every WA lawyer on line who deals with consumer law says six years.

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5 hours ago, legaleagle2012 said:

Spend three days reading WA cases on Google Scholar. That sort of issue is procedural and is usually disposed of early on by motion. You claim SOL as a defense, the other side moves to strike the defense, and you get a decision from the court. Such issues are rarely the stuff of what appeals are made of. Virtually every WA lawyer on line who deals with consumer law says six years.

That’s what I figured and have accepted, the 6 years. Thank you for the advice on google scholar LE!

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