Question
Bankruptcy or Ignore?
Ok, so I am looking at filing bankruptcy on unsecured debt (credit cards) to the tune of about $45,000. I do have a foreclosed house I had with my ex husband for $350,000. All of the cards are gone, all my payment options are gone. I changed all my phone numbers and only get the occasional piece of mail. My question is this.... since charged off credit (individually) stays on the credit report for 7 years, and bankruptcy (all of it) stays on the report for 7 years.... Why pay for the bankruptcy when I can just "ignore" it and it goes away anyways in 7 years? I am in my mid-30's, divorced with child, meet income guidlines for Ch 7, but filing would cost me $1800 (which I obviously don't have). I need a clean start. My downfall was the real estate market. I had A LOT invested and A LOT of income from it, then it crashed and *poof* everything crumbled within two years. Now I have only my modest house and average car and a middle class job. SUGGESTIONS????? P.S. I live in Texas which is a non wage garnishment state, so that is not an issue either.
3 weeks ago - 3 answers
Best Answer
Chosen by Asker
There is this concept of being judgment proof, that is, no job or garnishing of wages, no assets to attache. If you are working and have a drivers license you can generally be located. Yes, there is a 7 year statue of limitations and 10 years for bankruptcy. With a bankruptcy the creditors are prohibited from ever trying to collect and you get the fresh start you are seeking. Letting the 7 year statue run its course opens you up to collections and potentially law suits concerning the debts. The statue of limitations in Texas for credit card debts is 4 years which means the creditor has 4 years from the date of the last activity to file a lawsuit unless you do something that causes the statue to extend. If you want real peace of mine file the bankruptcy.
Source(s)
Elmo, Attorney, www.raise-credit-score.net
by Sippy
3 weeks ago
Asker's Rating: 
Other Answers
Well, I am in the same situation, but with only $12,000 in cc debt. It has been 5 years since I have made a payment on any of the cards. My point is, I have been seriously considering this question over the last few months because I am going to be getting a small amount of money soon, just enough to cover the cost of a bankruptcy. I only have two more years to go before they can no longer report the deliquency on my credit report, and if I file a bankruptcy then the 7 years are going to start all over again. I came to a conclusion, why pay it if it's going to do more harm to my credit.
by Lauren- 3 weeks ago
Do you know that money you owe is some one Else's. The credit card debt that you owe is some one elses investment. You want us to feel sorry for you cause you lost money in the market. Gee i wonder how many people lost money in the market and there 401k over the last two years. Both of you user are stealing and want get away with it. I don't like Barack Obama but he said before the election that any one owed money is going to pay it back. They been new laws passed to protect the Consumer against unfair practice. They will be laws passed to protect the creditor to make people like you pay. DEAD BEATS
by I love the wwe divas- 3 weeks ago