Barclays(Juniper credit card) – $4521
Providian 1(chase) – $9046
Providian 2 Business(chase) – $4640
Paypal GE Money Bank – $1182
Merrick (Hooters card) – $9000
Household Bank – $3500
GM Flex Card(hsbc) $1783
Capital One – $1200
Wells Fargo Financial – $2849
Staples – $1000

That equals to about $42,000 worth of unsecured credit card debt. 3 of the accounts have been charged off. These 3 accounts I will not pay, unless the Collection agency will provide me in writing a letter stating that if I pay X amount of dollars to settle the account then the account must be deleted from my credit report. These are commonly refered to as a “Pay for Delete”.  I am expecting to sell my only asset, which is a classic car. This will hopefully new me around $25,000 to pay off all of this debt. My goal is to be able to pay off all of this debt and still be able to put $10,000 in a savings account. How will I pay of $40,000 worth of debt with only $15,000? Stay tuned to find out.

I’m 30 years old and filed Chapter 7 bankruptcy when I was 22 years old. I was young and had high credit card limits. I was naive and went into a business partnership that went sour which caused me to file for Bankruptcy. Over the next few years I started researching on how to rebuild my credit. At the time, I knew nothing about credit scores and FICO’s. Over time I was able to raise my FICO to the 650 range. I had multiple credit cards with limits anywhere from $500 to $8000.  I was even able to get car loans, although the interest rates were absurd.

Everything was going great until my entrepenerial spirit kicked in again. In Dec 2007, I started a business and used my credit cards and a personal loan to fund the startup. This was great until the funds ran out and the income was not rolling in. I now have over $60,000 worth of debt, including secured loans, equipment leases and credit card debt. I have been unable to make minimum payments for 6 months now and left the credit cards go to collections. I have managed to work out some hardship programs with most of them, but some credit card companies have already been charged off. I just checked my FICO and it is now anywhere from 428 to 540, depending on the bureau.

So that is where I stand. I hope you follow along as I try to rebuild my credit score and start on a long road to credit recovery.