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 Hi David,
Well, like the millions of other Americans we are feeling the economic decline in our household. My husband is not working and I am already working 7 days a week just to stay above water. We are in the position now that we must decide what is going to be best for our future, and it appears our options are; stop making payments on things and allowing them to be repossessed, trying voluntary repo or filing chapter 7.
We have a house with an upside down loan, a $30,000 boat loan, a $10,000 trailer loan, $8000 bike loan, $7000 car loan, $15000 owed to the IRS and credit card debt.
I know with chapter 7 not ALL of your debt is discharged so would that even make sense for us?
Personally I was thinking voluntary repo's on everything we can would be the best bet. What do you think the best option for our position is?
Thanks so much for any advice you can offer!
Answer Rebecca-
My advice is as a credit repair specialist-not an attorney. It would be wise to consult with a reputable bankruptcy attorney in your state who could give you specific advice.
However, Chapter 7 bankruptcy typically covers all debts except government owed funds. In your case, the mobility debts,credit cards and home could possibly be covered whereas the debt to the IRS would not.
Please be assured that voluntary repossession usually is not the best option since you will be responsible for the differences owed on the items once the creditors sell them. This could make a hard situation harder in that the creditors can then pursue you and your husband legally for those monies owed. These usually lead to wage garnishments and levies if they aren't satisfied in a timely way.
So my suggestion is to talk with an attorney in your state. He or she can let you know if you qualify for a Chapter 7 bankruptcy (all debtors listed) and if you choose to restart, do it with a fresh slate. Should you and your husband make this decision, I can help with rebuilding your credit.
David
219-718-8566
www.financialscoringsolutions.com
