We had some life changing circumstances in 2004… it led us to stop paying on 11 credit cards. We went through a debt consolidation company and they basically took our $3800 and did nothing… In the past 2 years we have settled on 7 of these accounts. We got into an amazing church a few years ago and it’s changed our lives and how we look at our finances. We are slowly trying to rebuild and do what is righteous- but settling 7 accounts in 2 years has taken every bit of disposable income we have…
The 4 accounts left are with Capital One. Two back in the day were $5000 each- now are over $10,000. We received a notice that a civil suit has been filed against us on 1 of the remaining smaller balances ($2500 now $5000)… and I’m sure the other is in the works. I called Capital One about the 2 large accounts and they were charged off in 2008 and our SOL is up in September so I’m sure they will be suing us shortly… With this multitude of urgent debt facing us… should we file bankruptcy? We unfortunately filed bankruptcy in 2000… so not what we want to do… We are in such a different place in our lives as far as credit goes and we don’t ever use it and are paying off the few we have left agressively… What should we do??
I think the best answer to this problem is not found by looking backwards, but by looking forward. What is the goal you want to accomplish on this in the next 3 to 6 months?
Do you feel you have a greater responsibility to fix the past or to fix the future?
Before we come up with a direction to head it’s important to work through the issues. No matter what you have accomplished in eliminating your debt up to today, it does not matter if that path will leave you in harms way because of the remaining debt.
If you have not done so yet I would ask you to read The Honest and Unvarnished Truth About How to Get Out of Debt and then come back and post the answers to my questions in the comments section below.