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.

25 charge offs are worse. a bankruptcy in a way...is a clean slate.

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.

what is worse the 25 charge offs.

Why because when you go to buy a home they could take a lien and cloud your title.

If you go banko now.. FHA will allow you to buy a home in 1 year. Assuming you have 4 credit accounts since banko that are in good standing.

Im not answering a moral question, its an underwriting question. With 25 charge offs, they will all need to be paid to get a loan. That might take you 5 years. From the underwriting standpoint, I would say take the bankruptcy. Its easier to get a mortgage loan.

You have all that outstanding debt and you are thinking about buying a house in two years?!?!?!?!?!!? You are kidding, right?

Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership. If you

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get "The Total Money Makeover". Read it and follow it carefully.

Go check out Dave's website as well.

Yahoo is blocking the link for Dave's website for some reason. Guess they don't want people to use sound money methods?!?!?

It is www . dave ramsey . com without the spaces

They are both harmful.
My friend, you have to wait 7 years before you can buy a house. There's no money to borrow anyway - so just wait.

25 charge offs. Bankruptcy will actually help you rebuild your credit.

read thru this website, www.creditinfocenter.com
how old are those 25 charge offs and are they collection
agencies?????? you can fix your credit for free I tried doing 3 or 4 at a time, but got to confusing and messed up paperworks and letters. Keep Copies of everything and
only get it in writing, do not talk to any of them.
I have a letter already "set-up" in my files, that covers
the do not call me, the validation, and the threaten to sue
them back. My e-mail address is debprz0102@yahoo.com
send me an e-mail address and in the subject line put
REQUESTING YOUR LETTER FOR VALIDATION
so I don't delete it as spam and I'll send it to you. But read
thru that website it has helped me every step of the way.

Bankruptcy. You cannot afford to keep up with the credit card companies. You should be able to buy the home when your bankruptcy ages 2 years. I have an 8 year old bankruptcy and I have refinanced a number of times and otherwise for the bk, I have excellent credit (744).

You will also sleep better.