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Should you file BK AFTER debt gets sent to Treasury?
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Hi, everyone. Happy New Year and hope you're all able to stay healthy!

Here's a question regarding BK timing strategy. If I wait for my debt to get sent to Treasury, can I still file BK to get the debt erased? Why would I wait until debt goes to Treasury?

1). I want to see what happens. BK definitely will screw up my credit for a long time. So if my debt goes to Treasury first, I'd like to see what my credit looks like during this stage. Maybe it won't be as bad as with a full on BK filing.

2). Maybe if debt gets sent to Treasury, treasury is going to wait before they do any wage garnishment, etc. Hopefully they wait and wait ... a lot. That's good for me.

3). During this waiting game, perhaps SBA/Treasury will enact some type of forgiveness or OIC program. You never know...

4). In other words-- given that BK will definitely F'up your credit... what's the downside of debt being sent to Treasury if you can file BK AFTER debt is sent to Treasury???

Thanks gang!!!

Comments

I am not an attorney and my input is worth exactly what you're paying in it....

As far as credit being messed up, I doubt it makes much of a difference. A BK will be on tour credit report for 10 years.

If SBA/Treasury charges it off at some point it should only be in your credit report for 7 years.

My advice is go speak to a BK attorney and follow his advice.

Hang in there and know there are a LOT of folks in the same position as you.

[not loaded or deleted]

I missed where you said your business was an LLC.

Again, an attorney will be able to advise you best. But my understanding is you personally would not be effected by the negative credit.

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8 months ago