What is the strategy I should take?

[rockio]

We made a wrong decision which trickled down to a whole bunch of bad things. We rented a house we couldn't afford 1800 per month with the illusion that we would own it one day (verbal agreement between family). Have $40,000 in debt wich includes

$30K- 2 vehicle repossesion
$10K - medical + credit cards + payday loans+ misc debt

Finally decided to move. Will have about $500.00 at the end of the month. Willing to get a part time job early mornings to bring down debt faster and still have evening time with family. My questions is this. while I am paying off debt will the fact that I am paying down the 2 vehicle repossession better my credit score faster than filing for BK. And if so how soon can I start seeing this happen. What is the strategy I should take if I take this route. Otherwise why would BK be a better choice.

[HHM]

Please keep your posts consolidated, I think you have asked this very question in 2 or 3 other posts.

As to your question regarding paying repo's; first, why throw good money after bad, you don't have the cars anymore. The cars were repo'd, you paying on the deficiency balance will not change that fact and it will always be reported as a repo on your credit report. You are most likely better off just filing BK. It will allow you to more quickly improve your credit than paying on deficiency balances over who knows how many years.

Look at it this way, assuming no interest is accumulating, if you pay 500 per month to your total debt, it would take you over 6.5 years to pay it off. (it would probably take longer). Whereas, if you file BK, in about 4 months you will have zero balances on your accounts and you can take steps to improve your credit, and for the most part, the negative aspects of a BK on a credit report are negligible after a couple years. So, you can spend 6 or 7 years throwing good money after bad to improve your credit, or file BK and rehabilitate your credit in 1 to 2 years.

[Minnymouth]

I agree "totally" with HHM.....even though BK may not be the route that you wanted to take...

Minny