If you had only 4 more months on your SOL on all your cc debt...

[ready2puke]

Would you file BK or not? I haven't been sued and have til Sept. and all my cc debt SOL will have expired..I'm in Ca. and its 4 years here.. Citi has forgiven 50% of my cc debt (sent me a 1099C) and I am insolvent.
So far no lawsuits but I still have 4 months..then from what I'm reading and hearing I have 3 years and can have the credit agencies take off the debt off the report..
The way I'm looking at it is I'd rather wait 3 years with bad credit than 10 years with a BK..
I would love anyones thoughts on this..
Thanks
R2P

[SMinGA2]

If you have no reason to file now (lawsuit, foreclosure, repossession) then don't. Just my opinion.

[ready2puke]

I have a 2001 Honda SUV some property in Mexico (dirt) that no one in the US knows about..own my own biz so I'm self employed and they cant garnish my wages which I have none to speak of..just pay rent, elect. and biz bills..haven't talked to any creditors in almost 4 years..holding my breath here..

[LadyInTheRed]

I think I'd wait it out. But, keep in mind that having the SOL expire does not guarantee you won't have to deal with creditors and, worse, the people who bought your debts. They could call you and try to scare you into making payments so that you restart the time on the SOL. Of course, you'll know better than to let them get away with that. You can still be sued and will have to file an answer if you get sued to avoid a default judgment (stating the affirmative defense that the SOL has expired). Depending on how big the debt is, filing an answer to a lawsuit that is not filed in a small claims court will cost $225, $370 or $395.

Part of the reason I would wait it out is that I am already familiar with the procedures for filing an answer with the court and know I can handle the task. I have enough income to pay a filing fee if I have to and will probably stop most collectors from filing lawsuits by telling them the SOL is expired and making it clear that I know my rights and that they will not be successful in getting a judgement. I think the chance is small that I would get sued enough times that the filing fees to answers lawsuits would exceed the cost of filing BK. I also have nerves of steel and can handle getting annoying calls from creditors.

The advantage to filing BK is that you have the protection of a permanent injuction against efforts to collect on discharged debt. If you hear from a creditor, you send them a copy of your discharge. You get to sue them if they continue to try to collect. The SOL doesn't give you that protection.

[ready2puke]

Thanks Lady I think its a crap shoot..the only big debts I have left after Citi forgave those debts is BoA and thats 45k the only other one that a concern is a 2k is from chase..the rest are small amounts. Why I think waiting is good is I would have 3 more years of calls and then get those wiped off my reports. as opposed to 10 years with a BK.

[spidge]

Lucky dog, maybe. I would wait it out too. I would have but was sued just as I was paying the attorney and moving ahead on my 13. I had 9 months to go, darn it. You could also keep them busy by asking for proof of claim and stuff like that, but please be careful what you say. Like a car accident, don't admit guilt and don't apologize.

[ready2puke]

i'm very good at not saying anything lol..I haven't talked to one creditor on almost 4 years..I just don't answer my phone..or if I do by mistake..clue...listen for about 3 seconds of dead air...then you know its a creditor.I then just hang up

[frogger]

Why I think waiting is good is I would have 3 more years of calls.

3 years? Where did you come up with that number? You're going to have calls for the rest of your life. Just because it's not on your credit report or just because it's out of stats doesn't mean that they will not call.

They can and they will call forever.

[walkthaplank]

They'll also continue to ding your credit. If it were me, I would file for BK. Heck, I would have years ago. Be done with it and if they continue to bother you after you have had the debts discharged, the "butt kicking boot" is on the other foot. You get to go after them

[LadyInTheRed]

They'll also continue to ding your credit. If it were me, I would file for BK. Heck, I would have years ago. Be done with it and if they continue to bother you after you have had the debts discharged, the "butt kicking boot" is on the other foot. You get to go after them

A debt should fall of the credit report 7 years after the delinquency occurred. If the original creditor sells the debt, the buyer still cannot report past the original 7 year mark, assuming the debtor doesn't do something to restart the SOL. If the debt reappears on a report, it should be disputed.

[bcohen]

They'll also continue to ding your credit. If it were me, I would file for BK. Heck, I would have years ago. Be done with it and if they continue to bother you after you have had the debts discharged, the "butt kicking boot" is on the other foot. You get to go after them

If it were me, I would NOT file for bankruptcy unless you are facing some specific creditor action--such as lawsuits, garnishments, reposession, etc.--and have assets to protect. If you are not currently being sued, and you don't have any judgments, then why file? A lot can happen in 8 years, and maybe a year from now, or two years from now, you'll need to file, and since you did NOT file now, you can file then.

With regards to credit reporting, the ONLY thing bankruptcy does is zero out the balances owed, and adds an "included in bankruptcy" notation to each tradeline. It does NOT eliminate any charge-offs or late payments, and it does NOT affect the 7-year credit reporting period. Likewise, if you do not file for bankruptcy, the delinquent/defaulted accounts MUST be removed from your credit report after 7 years from the DOFD (which is 30 days from the first missed payment which triggered default). JDB's and collection agencies can still send dunning letters and call you forever, but you can simply discard the junk mail or hang up on their calls. By law, they CANNOT report your debt if the federal credit reporting period has elapsed.

[frogger]

A debt should fall of the credit report 7 years after the delinquency occurred. If the original creditor sells the debt, the buyer still cannot report past the original 7 year mark, assuming the debtor doesn't do something to restart the SOL. If the debt reappears on a report, it should be disputed.

You have to watch these debts close. They can "magically" re-age themselves and be on your credit report for 7 more years.

It's a nasty little trick, but it happens.......

[HHM]

I would file BK and bring 100% certainty to the status of the debt so I can move forward not waiting for the other shoe to drop. There is nothing magical about the SOL date, it is almost meaningless. The goal is to rebuild your financial life and get your life back; letting things linger on for years does not accomplish that. BK is not the end of credit or the end of your life. The sooner your file, the sooner you get back to normal. Many people in your situation forget what life is like without debt problems. You adapt, but is this how you "wanted" to live...e.g. not answering the phone, constantly checking your credit. How about focusing on your business, able to buy real estate, etc.

I would file.

[LadyInTheRed]

Yes, another downside to not filing. You have to keep an eye on those reports and dispute the "re-aged" accounts.

Filing BK is definitely the only final solution (other than paying the debt).

[ready2puke]

I do understand both sides...I am going on 63 this year and had to cancel my health insurance..a very good reason not to file..I might need to in a few years if I have major health issues come up..
I just don't want to play the BK card if I dont have to right now..
After the 7 years from the default date I will have one of those agencies that will notify me if someone tries to pull a fast one on my reports..just knowing they wont sue me (if they do I'll dispute it) will be a breath of fresh air for me..thanks for all the replies I do see both sides..
BofA is the only one I'm worried about..the others are small and can pay those off over time if I have too...