QUESTION
What would happen if I decided not to file and would my credit score ever recover?
Asked on May 03rd, 2017 on Bankruptcy - New Jersey
More details to this question:
I am on SSDI and have been working on filing Chapter 7 Pro Se. I'm anxious to move into my own place but will have trouble finding a place with my credit the way that it is. I have a foreclosure, a $40,000 debt from the homeowner’s association, and consumer and medical debt totaling approximately $20,000.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Eventually, all debts that haven't filed lawsuits will be barred by the statute of limitations. I would not recommend filing bankruptcy unless your creditors begin filing lawsuits.
Answered on Jul 31st, 2017 at 4:40 PM
1 Award
This is a great question. As you already know, the creditors can not take social security. What they can do is file a suit against you or report negatively on your credit. If your goal is improving your credit, then filing a bankruptcy is the best way to do that as it will officially eliminate all the debt. A creditor has 6 years from the date of default to file a suit, then that suit will remain on your credit reports for 7 years so you have a possibility of 13 years of bad credit based on a defaulted debt. The younger you are, the more bankruptcy makes sense. Also, the more likely it is you will have some income or other assets in the future that are not protected like social security is, the more bankruptcy makes sense.
Answered on Jul 28th, 2017 at 10:31 PM
Well, either you have filed Chapter 7 or you have not filed. If you have filed, there is no easy way to back out now. Bankruptcy does damage your credit for up to 10 years. If you have not filed, for the next 6 years, your credit score can get damaged every month with what will seem like a thousand paper cuts. In either case, repairing your credit does not appear to be something in your near future.
Answered on Jul 28th, 2017 at 10:30 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
You should file, because the HOA will continue to hound you. File once you get a new residence.
Answered on Jul 28th, 2017 at 8:33 AM