@PaperOrPlastic wrote:Hello,
I have a prior 7 from mid 2010s and due to some medical issues (mostly ran up credit bills on cards) I have about 30k debt
I have already stopped paying everything except my car. Latest updates to report show most of the accounts closed, some still open. I was wondering if I should settle or just file a BK (only) if I get sued. I can do 13 at any time or a 7 later in the year. Should I just let it all run its course and only take action if sued? I'm in AZ and new collection debt laws went into effect last year that give me a buffer here. I own free and clear but equity limit now is 400k my house is under that. Also garnishment is capped at 10% or 60 times min wage, which makes me almost judgement proof for my income.
Thoughts?
A bankruptcy for $30,000 should not be taken lightly, regardless of which chapter you file. Said another way, if you owed $300,000, then yes, bankruptcy, but for the amount you owe, I'd try and settle with your creditors, even if that means collecting a few 1099-Cs which will increase your taxable income.
If your credit is already destroyed, I would just save up and settle as you get threatened of lawsuit. You should be able to settle for 25-75% of balances depending on banks, length past due, and negotiation skills.
