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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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My current FICO is 768. Unsecured debt for CC is 57K. Whats

Customer Question

My current FICO is 768. Unsecured debt for CC is 57K. What's the best option for me Bankruptcy or Debt consolidation?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 6 years ago.

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.


A bankruptcy will hurt your credit about two hundred points, however if you qualify for a chapter 7 you will be able to discharge your entire unsecured debts. If you choose a debt consolidation you will be paying a significant portion of the debt monthly, and if they promise to reduced your debt by 50%, then your score will be lowered about 100 points, but you will also have a hard time improving your score in the future, while in a bankruptcy your score will improve a few months after the discharge.



Customer: replied 6 years ago.
1.I'm planning to settle myself.I'm not hiring the company. Is it worth to call them now when i'm current or wait for a few missing payments and then call?
2.I have a several credit cards with no balance which i'd like to keep.
Will filing the bankruptcy eliminate all my cards?
3.What harm will be easier to fix consolidation or bk?
4.How hard is qualify for chapter7?
Expert:  WALLSTREETESQ replied 6 years ago.
You should wait three or four month payments, and then start the settlement stage at this point they should offer 40-50% to start with. When you file bankruptcy you can reaffirm the credit cards you want to keep.

A bankruptcy is better than a consolidation. To qualify for a chapter 7, your household income has to be lower than the state average and your income has to be more than your monthly expenses.