Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
dparker13

0 Contributions
0 People Helped
bankruptsy verses paid/satisfied. Which is better for my credit score and potential buying power
I have two cards in collections. would it be better to pay them at a reduced rate or file bankruptsy? Which would be better for my credit?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
1936 Contributions
3082 People Helped

Pay them off what ever it takes. 

if you want to totally jack your credit up then file bankruptcy,  it will screw you for 7 to 10 years

Top Contributor
261 Contributions
129 People Helped

May as well pay off the two cards... the hit will be for 7 years for any derogatory entries made, or for a Chapter 13 bankruptcy (but the bankruptcy has the dubious bonus of having every extra cent of your income sent to a trustee.) A Chapter 7 bankruptcy lasts 10 years.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.