My turn..

I happened upon this page today while trying to find ways to increase my FICO score,which is an embarrasing 480 due to medical disabilities and the inability to recoup money owed from disability. This happened in 1997.Since then,I have been able to get outragous interest rates on auto loans and crdit card loans.The bank I had most of my other credit through is garnishing my salary and have 5 accounts reported on my credit reports as negative status. I also have a few other negative accounts,along with 4 positive accounts.All told,my total debt is over $50,000.

I make a decent living,about $83000 between my wife and myself.I had always thought that the debt removed itself after 7 years of non payment by myself,yet I read on the cr`s that debts started and last paid on in 1997 are due to go positive in 2009.Thats 12 years,by my calculations.

What brings me to this post is I am wavering on filing chapter 7 or waiting for the 7 year period when the negatives are suppose to start dissapearing.I realise the judgement from the bank will remain because its being paid through garnishment,but that will leave me with posiibly 2 bad lines on my reports.Any advice would be appreciated.

I would say contact a bk lawyer and see what he says. i think the 83k a year will prevent you from a 7 but a 13 could be done .

What decides whether or not its eligible for chapter 7 or 13? The amount of income? How does it go on the CR?

talk to a BK attorney. I know of millionaires that have filed chapter 7 so it can be done. Why pay for all this if it is killing you. you can improve your scores after bk in 2 years. with the bad credit still remaining on your reports if you don't, it will probably hurt you alot longer

What is important in determining a BK7 vs. BK13 is the difference between what you make and what you pay out for the debts that would not be discharged each month. Do some research or contact a bankruptcy attorney. Inital consultations are usually free.
m5k

I contacted an attorney yesterday.He told me I would probably have to file 13 because of the income-debt/payout ratio.Thats fine with me,but does the 13 "Dissapearing" time start from when its discharged or when I make my last payment to the creditors under the 13 agreement(or whatever its called).Thanks for your replies. Zonk

A quote from consumerinfo.com


A Chapter 13 bankruptcy remains on a credit report for 7 years from the filing date.

m5k

Thanks Mike

The chapter 13 'clock' starts ticking the minute you file the papers with the court, after 7 yrs it should be removed from your credit report. The 13 isn't discharged however until you complete the plan which is anywhere from 3-5 years, but it legally has to be removed off you credit reports 7 years after date of filing.

10 years on Equifax, do a search for that thread here.