Humiliating Credit Score, debating whether to negotiate or file BK? HELP!

QuestionsHumiliating Credit Score, debating whether to negotiate or file BK? HELP!
Chas Arellano asked 4 years ago

Hello! I’m suffering from information overload and still in shock at my new low credit score.


 I’m too embarrased to say how low, but it did make me cry! After my divorce I did everything I could do rebuild my credit and despite making all payments on time, the highest it went was 650.


Last year I had a sudden medical issue which led to unemployment for 6 months. I was barely able to pay my rent, now I have multiple Credit Cards that haven’t been paid and my score is impossibly low.

I’ve used lexington law credit repair before when my credit wasn’t as bad, there was NO IMPROVEMENT. 


Because my score is at the bottom of the score model, I’m considering BK since my score can’t get worse.



Some key points are…

I’m a divorced parent trying to take care of my child, credit affects our transportation, housing and quality of life.

My actual debt is no more than 10K (*I will be receiving a modest lump sum that could cover this in a couple of months)

My score can’t get much lower

I need to move into a new apartment this summer (NO Cosigner)

I have an expensive car lease that is behind on payments and they are threatening to repo.

Considering buying a pre-owned “cash” car (no more car payments!)

I have no money until next month (MARCH) the car could be repo’d by then since I’m far behind. 


After watching youtube videos, reading articles, making phone calls, I’m overwhelmed.


I need to know if I should just file a CH7 (California) since my score can’t get any lower, or attempt to negotiate debt settlement myself where they will hopefully remove negative mark for reduced lump sum payment. I have around 13-15 accounts I need to contact.


it’s shocking that YEARS of timely payments can be wiped out by 5 months of hardship COMPLETELY.


Any advice is greatly appreciated!


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