Should I, Or should I Not

[Ccarter718]

I've started the process to go ahead and start my BK. Now come to find out, my debt is not as steep as i've thought ( I realized that when I pulled my CR). my overall debt is probably no more than 3000. They are mostly Collection agencies and i've actually started the process of finding there phone numbers and calling them to see about paying the debt.
Now quick question.....

should i disreguard doing the bankrupcy?
would it be more benificial to go ahead and pay the collection agencies?
Which route would get my CR score to go up quicker?
Any advice is apreciated.
Thanks in advance
Chris

[thelitman]

I've started the process to go ahead and start my BK. Now come to find out, my debt is not as steep as i've thought ( I realized that when I pulled my CR). my overall debt is probably no more than 3000. They are mostly Collection agencies and i've actually started the process of finding there phone numbers and calling them to see about paying the debt.
Now quick question.....

should i disreguard doing the bankrupcy?
would it be more benificial to go ahead and pay the collection agencies?
Which route would get my CR score to go up quicker?
Any advice is apreciated.
Thanks in advance
Chris

My opinion would be to make a payment arrangement with the debt collector if you can afford it. Don't be to intemidated by them though. If they say you have to pay it all at once, and you can only make payments just go ahead and make the payments, they wont reject your money (although they may tell you they will on the phones if it is not the whole amount, but they wont) Your credit will increase a little slower by making the payment, but it will still increase, and be more effective. What I mean by that is.......

If your credit right now was at 500, and you filled BK, it may increase to 620 within 6 months, But your credit report will show 620, with a public record of BK.

If you don't file and your credit now was at 500, it may be 550-590 in 6 months while making payments, but when it gets paid off it would be at 620 or a little higher, and your credit report would show know public records of bankruptcy.

Now some creditors will give you credit with bk on your credit report, but there are some creditors who will not. I have a friend who has filled bk, has score is 720, he applied for a mortage loan with 4 different banks, although 2 out of the 4 approved him, the other 2 said the only reason for denying it was because of BK in the past 2 years. Now he still got an execellent APR, but wouldn't it be nice to be able to pick and chose which bank to get a loan through? It is better to file for BK if you can't afford to make the payments, but if you can afford to make payments over time. It is always better to do that.

Hope this helped

[cpw111]

How old is the debt? It will disappear after 7 years.

I would not even consider BK for a debt of $3000.

I dealt with a collection agency a few years ago that took everything off of my CR one year after I paid them. I kept disputing it over and over and it finally went away. The debt was less than $100.

My girlfriend has some medical bills for around $5000 that are deliquent. She wanted to pay them off but after she contacted the company that bought the loan and they were not willing to work with her she decided to simply let them fall off of CR at the end of this year.

[FilingOnMyOwn]

BK alone will probably cost you much more than 3k. Pay it off, don't file.