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Should I file Bankruptcy?
I have less than $5,000 to pay off on my credit cards, I have a judgement and three collections. I got myself in some trouble with my credit by trusting people. The judgment and two collections aren't because of me, but since my name is on it I am being held responsible. Lesson learned, but anyways. Only one of the collection is paid for, the other two and judgement are not, but payments are being made. I do not own anything other than my car that is paid for. I know the judgement is going to be on my credit for 10 years in the state I live in, not sure about the collections. Would it benefit me any by filing for Chapter 13? It seems like it's a waste of time and money to pay off my credit cards when I have 4 bad things on my credit that is hurting me. Say I wanted to go buy a car or get some kind of loan(I was wanting to buy a house this year) would it be better to have the bankruptcy or had 4 bad things on my credit? I was trying to so hard to get my score back up to where it used to be. I had a score of 720 and I know that isn't the best, but I was happy with that, Now my score is 587.... Please help me with advice because I do not know what to do and have no one to give me good advice.

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Bankruptcy?? Not good idea.

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The bads on your credit report are generally going to disappear in 7 years.  The judgement will vanish within 7 years after it is paid in full.  Credit cards will remain on your record for 7 years following date of last activity.


Someone with a seriously high level of assets (house, stocks, jewelry, etc) that could be repossessed to cover the debts might consider bankruptcy, but it would only harm you more than help.  Been there!!

So you were really a "good friend" and like co-signed loans for other supposedly good friends and they let you down.  You might consider taking them to small claims court to recover what they didn't pay, especially if you have some proof of their involvement to show a judge.  You might even be fortunate to have a judge/magistrat decide to oimpose some interest payments on the slackers.

I'd suggest working to get the credit cards paid off, try negotiating with the collectors to possibly get a "pay for delete" arrangement where you pay a (possibly) smaller amount and they mark it as paid-in full (a positive) or eliminate it.  Once the judgement is paid off, you will receive a "Satisfaction of Judgement" notice from the court to keep for your records.  

It's going to take a bit of time and patience to get things cleared up so you can get a house but you'll have the satisfaction of maintaining your integrity and proving you can be trusted with money, instead of taking a "cop-out" when things got tough.  You can get your good credit rating back by not repeating the same mistakes (and I'm sure you won't) and paying as agreed.  I wish you a great future!!

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