AboutDavid Expertise I can help answer questions on how to raise credit scores. I can educate you on all areas of credit scoring. My specialty is helping people recover from Bankruptcy and low credit scores quickly.
Experience I own a credit repair company and have helped hundreds of my clients raise their scores to purchase homes, cars and qualify for other loans.
Education/Credentials My background is in Financial planning.
Question I operate a small business and used my credit cards to support my business,
but it is now beyond continuing. I have approximately $175,000 in credit
card debt, 80% of which is company related. I have three separately branded
Chase cards, one with a $1000 balance, one with a $1500 balance and one
with a $13000 balance. Similarly, I have two GE backed cards (from Sams
Club) one for company use (but on my credit) and one for personal use. The
Company card is at around $8000 and the personal card (with some company
use) is at around $750. My only income after filing for 13 or 7 is going to be
unemployment and there is not going to be anything beyond a nominal
distribution to creditors either way. My question is does it make any sense
from a credit repair/damage control point of view to pay off (either before
bankruptcy or afterwards through reaffirmation) the cards with the smaller
balances on the cards with if they are with the same banks with bigger
balances? It is not like those banks are going to issue me credit again (or
anytime soon). Is your credit score affected by the number of credit cards not
paid as compared to the amount of the debt not paid? Thanks.
Quinn
Answer Hi Quinn,
Don't pay off the cards before your BK. Especially for chapter 7. It won't help your score at all, nor will it equip you for a quicker recovery.
I can walk you through the steps to take to have great credit in about a year after the BK is discharged. Most people can have a 700+ score 12-24 months after bk if you approach it correctly.
To start, if you have a choice opt for chapter 7. Much quicker recovery.
You can contact me at my direct line if you'd like some advice.
