Judgements vs. Credit Card troubles on credit reports

[pammar]

Hi, I'm new and, as you will soon learn, very ignorant about this entire process. We are thinking about filing for bankruptcy, but want to know a few things first.
I'd greatly appreciate any help we can get from the folks who post here. In advance, thank you so much for your time.

1/Is it better to file bankruptcy or to just keep the debts on your record, knowing you will never be able to pay them due to the additional late charges. (Hub became unemployed and we really fell behind).

2/If we never declare bankruptcy, does a judgment stay on the credit report longer than, say, a credit card non-payment? If so, how long?

3/What's with those lawyers who claim they'll get your credit report cleared? Whether or not I think it's fair (as hub was unemployed), we WERE late in our payments. And we didn't realize we had to go to court to dispute the judgments, so we can't change that. How can a lawyer dispute the truth and clean up anyone's credit? Sounds like a scam, yet a tempting one. At this point in time, we really can't borrow any money.

4/I have an older father who I hope lives to 100 years old. He is still healthy at 85. But if he happens to get sick (and here I hope to God it doesn't happen anytime soon)--if I inherit some money how does that work in conjunction with either filing bankruptcy or NOT filing bankruptcy? Will we be docked the inheritance OR will we be forced to pay what we owe if we do inherit?

5/Again, if God forbid hub dies, do I need to pay our debt out of his life insurance if I don't declare bankruptcy?

We have no savings and no assets. I am very afraid of what bankruptcy will do to us. At the same time, I am very afraid of what not filing bankruptcy will do to us. Our laywer, of course, wants us to file, but we need objective opinions from those who have been there/done that/know more than we do.

Thank you again.

[LuciluS]

It's getting way past my bedtime. However, I wanted to give you some research if you are so inclined to do tonight.

Move on over to 'Collections'. There is a 'Stickie' (they are listed before the regular posts). I believe HHM has one called 'Judgements' or something similar to that.

He explains in detail if Judgements have already occurred. Will check in the morning & if your questions haven't been answered, I will attempt to do so.

Luci

We all were once ignorant k?

[JRScott]

Hi, I'm new and, as you will soon learn, very ignorant about this entire process. We are thinking about filing for bankruptcy, but want to know a few things first.
I'd greatly appreciate any help we can get from the folks who post here. In advance, thank you so much for your time.

1/Is it better to file bankruptcy or to just keep the debts on your record, knowing you will never be able to pay them due to the additional late charges. (Hub became unemployed and we really fell behind).

2/If we never declare bankruptcy, does a judgment stay on the credit report longer than, say, a credit card non-payment? If so, how long?

3/What's with those lawyers who claim they'll get your credit report cleared? Whether or not I think it's fair (as hub was unemployed), we WERE late in our payments. And we didn't realize we had to go to court to dispute the judgments, so we can't change that. How can a lawyer dispute the truth and clean up anyone's credit? Sounds like a scam, yet a tempting one. At this point in time, we really can't borrow any money.

4/I have an older father who I hope lives to 100 years old. He is still healthy at 85. But if he happens to get sick (and here I hope to God it doesn't happen anytime soon)--if I inherit some money how does that work in conjunction with either filing bankruptcy or NOT filing bankruptcy? Will we be docked the inheritance OR will we be forced to pay what we owe if we do inherit?

5/Again, if God forbid hub dies, do I need to pay our debt out of his life insurance if I don't declare bankruptcy?

We have no savings and no assets. I am very afraid of what bankruptcy will do to us. At the same time, I am very afraid of what not filing bankruptcy will do to us. Our laywer, of course, wants us to file, but we need objective opinions from those who have been there/done that/know more than we do.

Thank you again.

1. Well while unemployed if you have no source of income and no assets it is probably better to wait to file until later after he has found a job. That way you can also discharge any or at least most unforeseen debts between now and then. The bad thing is the phone will ring off the hook which might drive you crazy.

2. The judgment is with the courts and will stay in effect until it is fulfilled. For example if you choose not to file now it is possible some of them would seek to get judgments, then hold off garnishment until he gets a job or some asset. However don't fret judgments except for like alimony and child support can be voided by a bankruptcy.

3. If it sounds like a scam it is, and yes they are scams. No one can fix your credit report. If it is truthful and accurate in a reflection of late payments etc only time can allow it to fix itself.

4. If he died within 6 months of your discharge then the trustee could take the inheritance and use it towards your debt. However if he passed after that time frame then there is nothing the trustee can do. (I'm pretty sure its 6 months)

5. See 4 above.

What I would suggest is going with your spouse to see 3-4 lawyers in your area for an initial consult, most are free (ask before making appointment). Have them look over your situation and see what they advise as well.