My credit stinks. Whats the best way to fix it? Do it yourself, credit counseling, Ch7, or Ch13?
My credit is terrible. After the sudden loss of my husband and a voluntary reposession, I am in a terrible credit situation. I would like to eventually purchase a home for my children but I have such terrible credit with so many little things on it (from medical bills to old CC's) that I really see no way out.
If you were me, would you:
*Try to sort out the mess line by line and pay each creditor off individually (25+ items). This could take years.
*File Chapter 7 (i'm a widowed mother and would qualify based on my income) and wipe it all out and wait for 2 years before trying to purchase a home.
*File Chapter 13 (which requires that I pay a % of the debts back over a 3-5 year period) I would qualify for a home loan in 12-18 months versus the 2 years and I will have made at least some effort to repay my debts.
*Do nothing and continue to rent and make my landlord rich?
Before you reply, I do not need to be preached to or made to feel bad about the choices I've made. I realize that some of the reason i'm in this mess is due to my own choices, but some of it also had very little to do with me. I could not control the death of my husband, nor could I have imagined that the insurance company would not pay for or accept responsibility for the hidden damaged caused by my car accident. A small crack in my engine grew and my engine eventually died. I had no choice but to replace the engine and keep the car or have them pick it up. At the time, I did not have 5-8k lying around for another enine and the insurance company refused to help.
Please give me your honest advice.