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File BK or pay off over time?

Date: Sat, 03/27/2010 - 22:28

Submitted by anonymous
on Sat, 03/27/2010 - 22:28

Posts: 202330 Credits: [Donate]

Total Replies: 3


End of 2008 one of my biggest customers went BK. Business was already slow and got burned for huge amount of money, plus many customers were paying 90/120 days out. I got behind on all 5 credit cards. 3 were non secured, 2 are supposedly secured. Interest rates on 4 outta 5 was above 30%. One of my Citi cards with a 24k balance was $1200.00 monthly minimum. So needless to say i was in big trouble. Couldn't even afford my house payment. So as of now my credit report shows negatives on everything. I just recently started making my house payments again.


Tonight i got served from Citi. I'm going to fight it and do the debt validation/show up in court. See what happens.

My question is should i negotiate with the 3 cards that will except somekind of payment terms, and be sued by the 2 that won't? Or just try and file bankruptcy 7 or 13, depending on where i fall? My credit rating is so low, i don't care anymore. I own my cars and will live in my home for many years over the 10 that will show up on my credit report.

Thanks in Advance.


Are you personally responsible for these business debts?

Bankruptcy would certainly cause more damage to your score than settlement but whether or not settlement is an option for you, would need a careful analysis of your situation. Moreover, you would not be able to include the secured loans into BK.

The decision would certainly depend on the amount you owe, your earning and such. I would suggest that you get a professional involved to help you decide.


lrhall41

Submitted by SC on Mon, 03/29/2010 - 00:09

( Posts: 3937 | Credits: )


Ditto. I think you need to meet with an attoryney and se what they say. I thought my bk case would cut and dry - reaffirm the house so could keep it, same with car. But found out that the credit card at the credit union was also tied to my car so if I put that credit card into my bk then I would have to turn in my car. That is just one example of how complicated it can be. So meet with someone on our situation. The attorney i met with did a no charge consulation and a bunch of research for me. I talked to her this week and she will help me with neogitations on settlements if I run into a brick wall down the road.


lrhall41

Submitted by on Mon, 03/29/2010 - 07:07

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