I had a payment not post to BOA and all I've had are problems ever since. I am probably filing bankruptcy, but I have to wait, because I transferred a balance in May, and used a Cash Advance check in July to pay some medical bills. I know that you cannot file within 6 months of a cash advance, and within so many. show more I had a payment not post to BOA and all I've had are problems ever since. I am probably filing bankruptcy, but I have to wait, because I transferred a balance in May, and used a Cash Advance check in July to pay some medical bills. I know that you cannot file within 6 months of a cash advance, and within so many days of a larger purchase, etc. I cannot make the minimum payments on all of my bills, becasue I have so many.
My sympathies on your illnesses and your losses.
Here's the gist - credit card debt is unsecured so the companies have very little recourse to collect from you. Once you are far enough delinquent, they will charge it off to get it off their books. If the amount is large enough, they may go ahead a get a judgement of default against you, but since the original debt was unsecured they cannot garnish wages or anything like that.
I would stay away from credit counseling services - they do not offer you any legal protections from your creditors. The rate reductions can be revoked at any time, etc. Furthermore, lenders view them the same as a chapter 13 BK (restructuring of your debt) since you are
in a "payment arrangement" situation unable to meet your full contractual obligation, so you will be unable to get a mortgage, car loan etc while you are in the counseling program.
In your situation, I think a ch7 is the way to go - while it does stay on your credit report for up to 10 years, the impact it has on your score lessens as time goes by, and most creditors will consider a previous BK over 1 or 2 years old as long as you have been clean since then.
Edit: after reading the responses above, they are incorrect about a BK damaging your credit more than just letting everything go. It depends on the status of your credit right now. I have seen borrowers who had good to excellent credit, but knew they were in over their heads, filed BK and had it discharged, and still maintained a score in the mid 600's. Contrast that with 3 or 4 or 5 accounts that report as 30, then 60, then 90, then 120 days late, each for many months, and then ultimately get charged off the same as a bankruptcy. Either way, you didn't pay your debts - one shows responsibility in how you handle it, the other shows that you stuck your head in the sand and pretended it would go away.
Another Edit: BK has nothing to do with getting a bank account. They do not check your credit to open an account, just if you have ever bounced checks or left negative balances at other banks.
Source(s): Mortgage industry for over 10 years as an underwriter, processor, sales manager, corporate trainer.