just letting the debt go!!!!

[quase]

I know this may sound crazy or stupid, but what could happen if I jus let my debt go as it is? I already have gone over a year without paying my cards, they are all in collection now as well. We never did and still dont answer our home phone so the phone calls are not a problem (I am hardly ever here anyways).

Won't the debt that I just walked away from simply fall off of my credit report after 7 years anyways, compared to 10 for BK?

Also, which looks worse, really, in the scheme of things? A BK on your credit report and having to say yes when asked by a potential employer (like the government) if you ever filed for BK or just letting the debt go and wishing it away?

I just recently applied for a job with the SBA (small business administration) processing loans due to hurrican Katrina. I did not get it because of my credit report- otherwise I was very qualified for the job. Now, what looks worse? If I had discharged those debts last year let's say versus letting them go, would the SBA have looked more favorably upon seeing a BK versus the charge offs and collection accounts that they saw? When a company, etc, sees a BK on a credit report, do they see the actual amounts that were discharged or only that there was a BK?

Thanks for any input and sorry for the long post....

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[tinroofrusted]

Technically they could try to garnish your wages, and things of that nature if they want their money bad enough........

You might want to think about that.

[StaciMM]

Old debt can come back to haunt you, and that makes you a credit risk almost permanently. (Creditors can get a judgement against you, which can lead to garnishment of wages. Judgements can be renewed, which means the 7 year rule doesn't matter.)

[quase]

So then, at the end of the day, it is better to have the BK on your credit report than to just let time go by and HOPE that nothing happens. I just assumed that after 7 years the debt would 'drop off' of my credit report and that would be the better scenario.

Just to let everyone know, I AM NOT FRETTING SO MUCH AS IT MAY SEEM OVER MY CREDIT SCORE. LIKE I READ HERE SOMEWHERE, LIFE IS NOT JUST ABOUT A D@#N CREDIT SCORE. BUT, MY BAD CREDIT HAS ALREADY COME BACK TO HAUNT ME WHEN I APPLIED WITH THE GOVERNMENT 2 WEEKS AGO.

This is why i am concerned about my credit score/report and what it contains. Thanks again for your great posts and help.....

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[StaciMM]

The benefit of BK is it closes out the old, and allows you to start fresh w/ no old ghosts to haunt you. The ignore-and-hope-they-go-away may work, but it may not. And, if that doesn't work and you file BK 2-3 years down the road, you're starting over when you could have been 2-3 years post BK.

No one can tell if you SHOULD file BK. But, one thing that is certain is there is some positive in filing.