Legal Question in Bankruptcy in Pennsylvania

When to file Bankcruptcy

As a reulst of a bitter divorce I am faced with some debts. They do not exceed $5000. It has been 6 1/2 years since the debts were turned over to collections. Is it worth it to file chapter 7 or will they just fall of after 7 years? This is what I have been told. I do not have the money to pay the debts and am getting no financial help from my ex husband. I was advised by co -workers it may be in my best interest to file chptr. 7, but if it takes 7 years to clear your credit , is it worth paying an attorney to file for me? It will be all i can handle to get together the money to pay a bankruptcy attorney. I really need advice!

Thank you,

--name removed--


Asked on 4/23/01, 1:57 pm

1 Answer from Attorneys
Marc Pachtman Pachtman Law Offices

Re: When to file Bankcruptcy

If you file a bankruptcy it will remain on your credit record for 10 years and not 7 years.

You should get a copy of your credit report to see who you owed money to and how much you owed. Normally, if you haven't paid a debt for an extended period of time it shows up on your record as a charge off(a charge off is essentially an uncollectable bad debt)

After 7 years you should be able to have the blemishes removed from your credit record, however don't count on the credit reporting agencies to do it on their own. As soon as the seven years has passed you should get another copy of your credit report. If the negative items are still on your report be sure to notify them to have them remove the negative items from your credit report.(see website, toughlawyers.net to learn the procedure for changing your credit report).

Finally, if you get into a problem with credit card debts you can go to a non-profit consumer credit counseling agency who will help you at no cost to set up a payment plan that you can afford.

Marc Pachtman, Esq.

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Answered on 6/16/01, 9:42 am


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