Author Topic: Should I pay off a maxed out accounts or go bankrupt?  (Read 1521 times)

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BrokeBob

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Re: Should I pay off a maxed out accounts or go bankrupt?
« Reply #30 on: March 05, 2017 06:41:57 PM »
I did spend a short time in banking.  I couldn't even apply until everything, I mean EVERYTHING, was past the SOL and my FICO scores were at least in the mid 600s.  I had to go through a lot of hoops to show that I didn't owe anyone any money.  In one case, an attorney waived an NDA and also wrote a letter to the bank showing that I had satisfied my debts to Citibank (Thanks Attorney Bob!). In another case, a Credit Union changed the reporting on my CRAs and wrote a letter showing that I didn't owe money from a foreclosure.

Banks can be really, really tough. 

chester474

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Re: Should I pay off a maxed out accounts or go bankrupt?
« Reply #31 on: March 05, 2017 08:08:02 PM »
Before filing bankruptcy one can "shelve" non-exempt assets.

"Shelving" assets is a bankruptcy term for converting non-exempt assets into exempt assets.

It's perfectly legal.

Get advice from an attorney.

Bankruptcy is in the Bible - see Deuteronomy Chapter 5, Verse 15.

Bankruptcy only applies to unsecured credit.

If the secured debt is not paid back the creditor can possess the credit and be made whole.

If a creditor allows an unsecured creditor to get into him so far as to hurt him he's stupid.

For the general good of society a creditor should not be able to hobble a debtor who has debt he can never pay back for the rest of the debtor's life.

This was evident even in Biblical times.

The hardest part of bankruptcy is getting the debtor to do it.

Once they file bankruptcy - the effect is immediate -  they realize they should have filed bankruptcy years ago - many debtors struggle under a burden of debt for years before going bankrupt

Bankruptcy is a blessing.

If you're worrying about your credit record - forget about worrying - you've already got bad credit.