Wait 2 years till it is clear, then build my credit back up with a clean start
2006-11-10 03:14:56 · 9 answers · asked by Brad H 1 in Business & Finance ➔ Credit
I just love all these "pay the bills" answers! Come on guys! Didn't you read the part where he said he was unable to pay them for years? Don't you think he would pay them if he could? Sheesh!
dbuitt22 is on the right track.
If you filed for bankruptcy, it will appear on your credit report for the next 10 years. In your situation BK is not the answer.
Start by reading the links below, so you understand what the Statute of Limitations is. After a certain period of time, you no longer have a legal obligation to pay those debts. Therefore, the only issue you have with those older debts is that they are on your credit report. If you wait a couple years they will drop off automatically.
If the debts are recent (2-4 years) you could consider contacting them to negotiate a payment plan.
But bankruptcy? Not in your case. Never file BK for debts under $20k.
Contact me if you need more specific advice. I am not a lawyer or credit counselor. Just someone who likes to fight with creditors.
2006-11-10 03:58:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Actually if you file for bankruptcy now you can still rebuild your credit right away. Many credit card companies that specialize in damaged/bankrupt credit will give you a credit card. These companies such as Orchard bank and Providian are the most popular.
My one question is why haven't you made an attempt to pay back the 5K debt. You really don't have enough debt to declare a bk.
My suggestion is one that I recommend and counsel all my clients is simple. My clients love me because it builds up their credit scores and never have to declare bankruptcy or go to Credit Counseling Services.
Pay your bills on a bi-weekly basis. Split the payment into 2 payments and do that every 2 weeks. You are reducing the term of the cycle and at the same time your balance will drop dramatically. Keep doing it until your bills are paid off. In some cases your creditors may owe you money.
2006-11-10 12:51:59 · answer #2 · answered by steve s 3 · 0⤊ 0⤋
I believe bankruptcy is stay on recorder for 7 years, not 2.
Don't waste 7 years of your time for a little 5k debt.
2006-11-10 14:31:46 · answer #3 · answered by Wilson 1 · 0⤊ 0⤋
Go to a reputed Credit Counseling service. Make payments that way. I had $11,000 in credit card debt, my credit is blown, but I'm paying it off and it will take me about 4 years. But yours is much, much less. Don't file for bankruptcy. Especially not over 5K.
2006-11-10 11:24:06 · answer #4 · answered by amykstan 1 · 0⤊ 0⤋
Now Let me inform you on a few things.
First check your State statue of limiitation for an open account. Those are credit cards account
Most states are 3 years and if your creditors have not collected before your state's SOL ran out then legally they can not collect it legally.
If they are calling you and it is over the SOL write a cease and desist letter to your creditors and do not file for Bankruptcy until you have tried this and check your credit reports.
Just wait and see what happens after doing this.
2006-11-10 11:32:48 · answer #5 · answered by dbuitt22 6 · 0⤊ 0⤋
5k is not that much debt. It would probably cost you more to file for bankruptcy. And I believe that it will stay on your record for seven years, not two.
2006-11-10 11:17:57 · answer #6 · answered by Aggie80 5 · 0⤊ 0⤋
i dont think for 5k debt u shud go for bankruptcy
How to Avoid Bankruptcy Explained
http://www.debt-explained.com/category/How-to-Avoid-Bankruptcy-Explained.html
2006-11-12 05:21:39 · answer #7 · answered by marie a 2 · 0⤊ 0⤋
A bankrupcy would problly do more damage to a c redit report than if you started at least paying the interest+$1.
2006-11-10 11:24:41 · answer #8 · answered by Anonymous · 0⤊ 0⤋
5 k is nothing... start making the payments...
2006-11-10 11:19:58 · answer #9 · answered by ﺸÐïåMóñdÐôññåﺸ 5 · 0⤊ 0⤋