No that is not true, depending on if it is a 7 or 13. A 7 will wipe out your debts but will negatively impact your credit for the next 10 years. There are lenders that will finance you 1 day out of bankruptcy but the rate will not be nice.
I never said I believe everything , just something I heard. I just wondered in regards to after filing chapter 7, you are no longer responsible for these debts, so how does this work in reference to your credit score and debt ratio? this is why I asked. Another reply informed me that it depends on if it is chapter 7 or 13 and you can get financing 1 day after BK. However, thanks for your input, if I had 10K, I can increase it myself. no thx anyway.
Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized. If you are trying to clear up noncollateralized debt (i.e. credit cards) then BK is a bad choice. There are many ways to fix your debt ratio. BK will fix it but will defeat the purpose.
One way to fix your debt ratio is to consolidate (do it yourself - DO NOT GO TO CREDIT COUNSELING SERVICES because this is regarded the same as BK by lenders and most do not deliver on promises of clean credit) . Start by taking small balances and moving them to other accounts. I don't know your exact situation so I hope this helps.
BK is also appropriate where creditors are garnishing wages and making life too difficult.
If there's just a bunch of unpaid creditors around, and they're still within the period when they can sue, you should go to three websites and absorb all the knowledge you can:
Unless BK is absolutely necessary, settle the debts you need to one by one on a "pay for deletion" basis when possible, for as little as 30 cents on the dollar.
Unless BK is inevitable, everything you need to do you can learn to do for yourself.
Great advice!
I would clarify even further on the pay for deletion....get it in writing and try not to submit payment until you get this agreement in writing, unless of course they are flat out unwilling. Watch for notations like "settled for less than the amount owed" on your report. This is very damaging.
Having this notation removed is a whole other conversation.
I use a credit repair law firm for $50 a month, because I as well don't have the spare time to do it myself although I have the knowledge of how to do it. My knowledge of the process help me identify a reputable firm. Who has raised my score after BK. I will use them until all 3 FICO scores are 700+
Quote:
On 2003-11-24 10:33, Steena wrote:
If you are trying to clear up noncollateralized debt (i.e. credit cards) then BK is a bad choice. There are many ways to fix your debt ratio. BK will fix it but will defeat the purpose.
One way to fix your debt ratio is to consolidate (do it yourself - DO NOT GO TO CREDIT COUNSELING SERVICES because this is regarded the same as BK by lenders and most do not deliver on promises of clean credit) . Start by taking small balances and moving them to other accounts. I don't know your exact situation so I hope this helps.Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized.
You said "Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized."
Bankruptcy is a viable option if you think it's neccesary, its nothing to be afraid of, yes will have a struggle to rebuild good FICO scores but it can be done a lot quicker than you may think if you employ the correct strategies.
Yes Bk will improve your credit score chapter 7. However there is a cavet and some caution. The cavet is this the credt card companys will not clear the bk items off of your credit this is up to you. Then your score will jump into the mid sixes. Remember this though. For conventional financing you have to wait 4 years im talking low interest rates low down payments. FHA 3years. One other caution people are saying they will finance you right out of bk. Wrong if its investor property your going to have a real tough time. In addition if your financing investor conventional out of bk thats a double whammy life could get tough there are other ways to be a investor than using your credit.
Quote:
On 2003-11-26 20:44, MrMike wrote:
Quote:
On 2003-11-24 10:33, Steena wrote:
If you are trying to clear up noncollateralized debt (i.e. credit cards) then BK is a bad choice. There are many ways to fix your debt ratio. BK will fix it but will defeat the purpose.
One way to fix your debt ratio is to consolidate (do it yourself - DO NOT GO TO CREDIT COUNSELING SERVICES because this is regarded the same as BK by lenders and most do not deliver on promises of clean credit) . Start by taking small balances and moving them to other accounts. I don't know your exact situation so I hope this helps.Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized.
You said "Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized."
Please explain.
You can be sued for not paying your bills. If you lose the law suit, the creditor will be awarded a judgement. The judgement can only be enforced if the creditor can PROVE that you have an ability to pay. They tend to go after anything of substantial value that you own.
BK is protection against seizure of assets.
If you are not trying to protect your assets then what would be the point?
It's not any harder to overcome "unpaid " or "charge off" than it is to overcome BK.
As a matter of fact it's quite a bit easier to get a "charge off" removed from your credit history than BK.
Charge offs fall off on their own in 7 yrs and can usually be removed after 2 yrs.
BK stays with you for 10 yrs, and unless you are some kind of magician it will not be removed for the entire 10 yrs.
BK is a bad choice unless you've got no choice.
[ Edited by DannyB on Date 12/19/2003 ]
hrm, so if i have outstanding credit card debt that i havent paid in 3yrs, would it have already been dropped or do i have to wait another 4yrs???
i remember reading that when someone tried to pay their credit card debt, they were better off not paying it and letting it drop off... i'm confused...
Quote:
On 2003-12-19 03:10, ahabion wrote:
hrm, so if i have outstanding credit card debt that i havent paid in 3yrs, would it have already been dropped or do i have to wait another 4yrs???
i remember reading that when someone tried to pay their credit card debt, they were better off not paying it and letting it drop off... i'm confused... First, BK is also useful if a garnishment can't be stopped any other way.
Second, simply paying COs is unhelpful, regardless of whether you pay the OC or a CA (you should always try to cut the CA out and pay the OC, if they'll take the debt back from the CA) ... but, you should also always try to negotiate how the TL is listed, or negotiate for its deletion, which is different from simply paying.
An unpaid CO TL is no worse than a paid CO TL as far as FICO scores are concerned. But when reports are manually reviewed (not just looked at score-wise), you do get some benefit from having paid. Nonetheless, you want to negotiate the appearance of the TL you are paying on, and you do want to try to settle for somewhere between 30% - 50% of the amount claimed, which is sure to be inflated by outrageous interest and crap charges.
for details, see
www.creditinfocenter.com
www.crediboards.com
www.creditnet.com
Bankruptcy is not for every situation, but for me it was my one way out. 10 months after discharge my score was 672 and I had financing on a $ 21000 vehicle for 9%. (only because I totalled my car, not that I filed to relieve debt so I could buy a car). In looking for loans for buying real estate, the mortgage man I am dealing with said that my credit looked good, but lenders want BK to be discharged 2 years then a loan is in order.
Quote:
On 2003-12-19 03:10, ahabion wrote:
hrm, so if i have outstanding credit card debt that i havent paid in 3yrs, would it have already been dropped or do i have to wait another 4yrs???
i remember reading that when someone tried to pay their credit card debt, they were better off not paying it and letting it drop off... i'm confused...
Nothing happens "automatically" in less than seven years. You would need to remove it after the two to year period.
you can find everything that you'll need: (the how to, the proper form letters to file, the exact steps and It's all FREE for ANYONE. no charges, fees, spam, or pain. It's just there for the taking.)
Quote:
On 2003-12-19 08:39, tex64 wrote:
Bankruptcy is not for every situation, but for me it was my one way out. 10 months after discharge my score was 672 and I had financing on a $ 21000 vehicle for 9%. (only because I totalled my car, not that I filed to relieve debt so I could buy a car). In looking for loans for buying real estate, the mortgage man I am dealing with said that my credit looked good, but lenders want BK to be discharged 2 years then a loan is in order.
Just my $0.02 worth.
John
Yes! you can get financing.
No! you won't like the interest rate for 10 yrs.
we seem to be missing the point, in my opinion.
If your credit is still going to suffer and it will take 2 to 3 years to get credit back on track and you are NOT trying to stop a law suit (asset seisure, wage garnishment, public flogging, etc.):
Please, explain why you would want to pay a BK attorney???
It seems to me that you'll be in the same position either way. (with the exception of the attorneys fees, of course.)
I paid my attorney $3000 and worth ten times that much in my case. I filed Chapter 7 June 2001 to save our house and I thought some other property. Trustee took rent houses. Homestead lender was also lender on 10 other houses and thought homestead was just a rent house. Sept 2003 rolls around and lender files foreclosure on homestead after figuring out that they could have done so in Aug 2001. Went to 5 attorneys specializing in BK and only one said he could help. One sais that I gave them a good chase and time to move out and give up $250,000 equity. With no equity in the house I would have given up years ago. Filed a new Chapter 13 and Judge told me that if I had not hired a good attorney and I had not had strong equity he would have let the bank have house. Had I had the same attorney ( I filed by myself) in 2001 I would still have control and ownership of the properties. I am going to hire him too to get them back when I have the funds. Trustee has not sold most of them as of yet. That's why you have attorneys. Find a good one like did,
I'm going to suggest you don't believe everything you read.
However
If you give me $10,000, you will have good fortune and your fico score may increase as well
No that is not true, depending on if it is a 7 or 13. A 7 will wipe out your debts but will negatively impact your credit for the next 10 years. There are lenders that will finance you 1 day out of bankruptcy but the rate will not be nice.
I never said I believe everything , just something I heard. I just wondered in regards to after filing chapter 7, you are no longer responsible for these debts, so how does this work in reference to your credit score and debt ratio? this is why I asked. Another reply informed me that it depends on if it is chapter 7 or 13 and you can get financing 1 day after BK. However, thanks for your input, if I had 10K, I can increase it myself. no thx anyway.
Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized. If you are trying to clear up noncollateralized debt (i.e. credit cards) then BK is a bad choice. There are many ways to fix your debt ratio. BK will fix it but will defeat the purpose.
One way to fix your debt ratio is to consolidate (do it yourself - DO NOT GO TO CREDIT COUNSELING SERVICES because this is regarded the same as BK by lenders and most do not deliver on promises of clean credit) . Start by taking small balances and moving them to other accounts. I don't know your exact situation so I hope this helps.
BK is also appropriate where creditors are garnishing wages and making life too difficult.
If there's just a bunch of unpaid creditors around, and they're still within the period when they can sue, you should go to three websites and absorb all the knowledge you can:
www.creditboards.com
www.creditinfocenter.com
www.creditnet.com
Unless BK is absolutely necessary, settle the debts you need to one by one on a "pay for deletion" basis when possible, for as little as 30 cents on the dollar.
Unless BK is inevitable, everything you need to do you can learn to do for yourself.
Great advice!
I would clarify even further on the pay for deletion....get it in writing and try not to submit payment until you get this agreement in writing, unless of course they are flat out unwilling. Watch for notations like "settled for less than the amount owed" on your report. This is very damaging.
Having this notation removed is a whole other conversation.
I use a credit repair law firm for $50 a month, because I as well don't have the spare time to do it myself although I have the knowledge of how to do it. My knowledge of the process help me identify a reputable firm. Who has raised my score after BK. I will use them until all 3 FICO scores are 700+
Quote:
On 2003-11-24 10:33, Steena wrote:
If you are trying to clear up noncollateralized debt (i.e. credit cards) then BK is a bad choice. There are many ways to fix your debt ratio. BK will fix it but will defeat the purpose.
One way to fix your debt ratio is to consolidate (do it yourself - DO NOT GO TO CREDIT COUNSELING SERVICES because this is regarded the same as BK by lenders and most do not deliver on promises of clean credit) . Start by taking small balances and moving them to other accounts. I don't know your exact situation so I hope this helps.Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized.
You said "Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized."
Please explain.
Bankruptcy is a viable option if you think it's neccesary, its nothing to be afraid of, yes will have a struggle to rebuild good FICO scores but it can be done a lot quicker than you may think if you employ the correct strategies.
Yes Bk will improve your credit score chapter 7. However there is a cavet and some caution. The cavet is this the credt card companys will not clear the bk items off of your credit this is up to you. Then your score will jump into the mid sixes. Remember this though. For conventional financing you have to wait 4 years im talking low interest rates low down payments. FHA 3years. One other caution people are saying they will finance you right out of bk. Wrong if its investor property your going to have a real tough time. In addition if your financing investor conventional out of bk thats a double whammy life could get tough there are other ways to be a investor than using your credit.
Quote:
On 2003-11-26 20:44, MrMike wrote:
Quote:
On 2003-11-24 10:33, Steena wrote:
If you are trying to clear up noncollateralized debt (i.e. credit cards) then BK is a bad choice. There are many ways to fix your debt ratio. BK will fix it but will defeat the purpose.
One way to fix your debt ratio is to consolidate (do it yourself - DO NOT GO TO CREDIT COUNSELING SERVICES because this is regarded the same as BK by lenders and most do not deliver on promises of clean credit) . Start by taking small balances and moving them to other accounts. I don't know your exact situation so I hope this helps.Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized.
You said "Bankruptcy is only if you are trying to save or protect personal property such as your home, vehicle, and liquid assets and protect you against those things being seized."
Please explain.
You can be sued for not paying your bills. If you lose the law suit, the creditor will be awarded a judgement. The judgement can only be enforced if the creditor can PROVE that you have an ability to pay. They tend to go after anything of substantial value that you own.
BK is protection against seizure of assets.
If you are not trying to protect your assets then what would be the point?
It's not any harder to overcome "unpaid " or "charge off" than it is to overcome BK.
As a matter of fact it's quite a bit easier to get a "charge off" removed from your credit history than BK.
Charge offs fall off on their own in 7 yrs and can usually be removed after 2 yrs.
BK stays with you for 10 yrs, and unless you are some kind of magician it will not be removed for the entire 10 yrs.
BK is a bad choice unless you've got no choice.
[ Edited by DannyB on Date 12/19/2003 ]
hrm, so if i have outstanding credit card debt that i havent paid in 3yrs, would it have already been dropped or do i have to wait another 4yrs???
i remember reading that when someone tried to pay their credit card debt, they were better off not paying it and letting it drop off... i'm confused...
[addsig]
Quote:
On 2003-12-19 03:10, ahabion wrote:
hrm, so if i have outstanding credit card debt that i havent paid in 3yrs, would it have already been dropped or do i have to wait another 4yrs???
i remember reading that when someone tried to pay their credit card debt, they were better off not paying it and letting it drop off... i'm confused... First, BK is also useful if a garnishment can't be stopped any other way.
Second, simply paying COs is unhelpful, regardless of whether you pay the OC or a CA (you should always try to cut the CA out and pay the OC, if they'll take the debt back from the CA) ... but, you should also always try to negotiate how the TL is listed, or negotiate for its deletion, which is different from simply paying.
An unpaid CO TL is no worse than a paid CO TL as far as FICO scores are concerned. But when reports are manually reviewed (not just looked at score-wise), you do get some benefit from having paid. Nonetheless, you want to negotiate the appearance of the TL you are paying on, and you do want to try to settle for somewhere between 30% - 50% of the amount claimed, which is sure to be inflated by outrageous interest and crap charges.
for details, see
www.creditinfocenter.com
www.crediboards.com
www.creditnet.com
Bankruptcy is not for every situation, but for me it was my one way out. 10 months after discharge my score was 672 and I had financing on a $ 21000 vehicle for 9%. (only because I totalled my car, not that I filed to relieve debt so I could buy a car). In looking for loans for buying real estate, the mortgage man I am dealing with said that my credit looked good, but lenders want BK to be discharged 2 years then a loan is in order.
Just my $0.02 worth.
John
Quote:
On 2003-12-19 03:10, ahabion wrote:
hrm, so if i have outstanding credit card debt that i havent paid in 3yrs, would it have already been dropped or do i have to wait another 4yrs???
i remember reading that when someone tried to pay their credit card debt, they were better off not paying it and letting it drop off... i'm confused...
<IMG SRC="images/forum/smilies/icon_confused.gif">
<IMG SRC="images/forum/smilies/icon_lol.gif">
Nothing happens "automatically" in less than seven years. You would need to remove it after the two to year period.
you can find everything that you'll need: (the how to, the proper form letters to file, the exact steps and It's all FREE for ANYONE. no charges, fees, spam, or pain. It's just there for the taking.)
www.cleancreditclub.com
Quote:
On 2003-12-19 08:39, tex64 wrote:
Bankruptcy is not for every situation, but for me it was my one way out. 10 months after discharge my score was 672 and I had financing on a $ 21000 vehicle for 9%. (only because I totalled my car, not that I filed to relieve debt so I could buy a car). In looking for loans for buying real estate, the mortgage man I am dealing with said that my credit looked good, but lenders want BK to be discharged 2 years then a loan is in order.
Just my $0.02 worth.
John
Yes! you can get financing.
No! you won't like the interest rate for 10 yrs.
we seem to be missing the point, in my opinion.
If your credit is still going to suffer and it will take 2 to 3 years to get credit back on track and you are NOT trying to stop a law suit (asset seisure, wage garnishment, public flogging, etc.):
Please, explain why you would want to pay a BK attorney???
It seems to me that you'll be in the same position either way. (with the exception of the attorneys fees, of course.)
I paid my attorney $3000 and worth ten times that much in my case. I filed Chapter 7 June 2001 to save our house and I thought some other property. Trustee took rent houses. Homestead lender was also lender on 10 other houses and thought homestead was just a rent house. Sept 2003 rolls around and lender files foreclosure on homestead after figuring out that they could have done so in Aug 2001. Went to 5 attorneys specializing in BK and only one said he could help. One sais that I gave them a good chase and time to move out and give up $250,000 equity. With no equity in the house I would have given up years ago. Filed a new Chapter 13 and Judge told me that if I had not hired a good attorney and I had not had strong equity he would have let the bank have house. Had I had the same attorney ( I filed by myself) in 2001 I would still have control and ownership of the properties. I am going to hire him too to get them back when I have the funds. Trustee has not sold most of them as of yet. That's why you have attorneys. Find a good one like did,
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
The most important thing you must remember about filing for bankruptcy:
It will be in your life, in every credit decision discussion for at least the next 7 years.
Sometimes its the only option, sometimes there's better options. Take your time and research all options.
Good Luck.