Which is worse on your credit report a bankruptcy

[divajr]

or 25 charge offs? I am trying to rebuild my credit and tossed up between declaring bankruptcy, I currently have about 18,000 in debt, I have 29 accounts on my credit report 1 in good standing, 3 delinquent, and 25 charge offs, I want to purchase a home within the next 2 years..should i file now, or try to pay down the charge offs, I have limited montly funds outside of rent and neccesary bills to live day to day? Please help.

[georgepardos]

In the long run filing bankruptcy will actually be better off for you. For the following reasons. In todays world the charge offs can be bought by debt collection agancies and later sued for. A bank that sees a bankruptcy will know at least for the next 7 years you wont be able to go and fille a chapter 7 so they will know they can be a secured debtor. Also the charge offs will stay on your credit at least for 7 years other wise. The other option is to call and settle with the charge offs, You could offer the 5% of the face value and sometimes they might take it sometimes they wont. Usually bad debt is bundled and then resold for pennies on the dollar. That is why you are better off filing bankruptcy. Also make sure that you list every one on your bankruptcy, I mean every one. Even people you might not think will come after you even though you owe them money. Mkae sure that you file with all the utility companies as well, the only thing you cant file bankruptcy on is student loans. Good luck.