what happens to your delinquent accounts and credit when you file for bankruptcy?
I don’t know if i should file or not, not that I have great credit, but I’m tired of some things that’s bad popping up, and I want more options for them not to pop up, I thought of getting my credit cleaned, but don’t know if there is a cheaper way to hide some bad stuff I don’t intend nor have to repair them the right way.
Posted October 26th, 2011 in When To File Bankruptcy. Tagged: bad stuff.
Just ask here how to deal with these items.
October 26th, 2011 at 7:01 pmBankruptcy is not a step to be taken lightly.
It will ruin your credit for years.
Employers, car insurance companies and landlords check.
This means no loans for years to come – not even a cell phone contract
Filing for Chapter 7 does not purge your credit report to where all negative things fall off…what it does do is release you from the obligation to pay most private debts like credit card debts.
October 26th, 2011 at 7:01 pmFor example, if you have a 3 year old credit card default of $5,000, if you filed for Chapter 7, the notation would not be deleted, it would just get updated to "Discharged in bankruptcy."
Bottom line: If you have bad credit now, you’ll still have bad credit after filing..
- There is no such thing as instant credit repair. Negative items stay for 7 years from the original date of default. Neither you nor any firm you could hire could delete accurate negative info before that time. They have to age off.
Bankruptcy simply stops creditors from being able to collect against you once your debts have been cleared by the bankruptcy.
However, all of those debts AND the bankruptcy will be on your credit report for the next 7 years, minimum. Bankruptcy saves you from judgements and collections, but trashes your credit in the mean time.
October 26th, 2011 at 7:01 pmthere is absolutely no way to hide bad stuff. You’d pay cleaners to clean it off and the next time the automation kicks in, probably the following month, up pops the bad stuff again.
How did the bad stuff get on there? If you were behind in payments that will always be on there, like for 7 years but behind the scenes after that. If you had a judgment then that probably has built up into a mountain and the way to get a "satisfaction" on your report is to pay that bill.
a person should never go bankrupt unless they owe $65,000 and a huge mound of medical bills. Any bankruptcy will stay on your file to the public for 7 years but is still held behind the scenes and might give you problems in getting any job that deals with money or figures or even in getting a place to live.
Don’t be tired of bad things popping up because they will always be popping up, so get used to it.
October 26th, 2011 at 7:01 pmWhen you file bankruptcy, your creditors have to write off the amount you owe them. They gave you something that you didn’t pay for and they have to take the hit for that. Doesn’t seem quite fair does it.
Your credit may already be borderline, but after a bankruptcy, it crashes. You can’t get a car loan, a mortgage, a credit card – nothing for up to 10 years.
Landlords won’t rent to you, some jobs require a credit report. If yours is bad, you don’t get hired. It’s a bad thing to do if your debt is because you can’t manage money.
If you don’t pay your bills, they can and will keep calling you – they have every right to try to get money from you. Bankruptcy stops all that, but it stops everything good also.
Take care of those "bad things that keep popping up" and they will stop popping up. If it’s money you owe then do the right thing and pay it.
Sorry, but way too many people are filing BK just because they messed up and can’t handle money.
October 26th, 2011 at 7:01 pmToo many people magically think that bankruptcy is a magic fix for all their bad spending habits. Most of it is because someone fed you a line of bull on the internet. How about taking some responsibility and start making small payments back since you actually owe the money?
October 26th, 2011 at 7:01 pmHi Tracy C, I have heard some negative items about credit repair places. These things may or may not be accurate so I was reluctant to use one. But I discussed it with my sister and she said that they contacted Lexington Law. I contacted them myself and are getting our credit repaired right now! So far they have been wonderul. We’ve been clients for just over four months and have already had success with our credit being repaired! I’ll get the phone number. You should call them at 877-243-0905. It’s toll free to call and talk to them.
October 26th, 2011 at 7:01 pmBankruptcy is intended to give honest borrowers a fresh financial start in life. Bankruptcy will discharge your debts but it will remain in your credit report for up to 10 years. Generally, as an individual you can file for bankruptcy protection under Chapter 7 or Chapter 13. To qualify for Chapter 7, you must pass the "Means Test" – your income must be below the state median income. If you do not qualify for filing Chapter 7, you can file for Chapter 13. In both cases, the debts must be paid off. In Chapter 7, your non-exempt assets will be sold and the proceeds will be used to pay off your debts while in Chapter 13, you have to pay off the debts according to the payment plan. Try to be responsible in borrowing, if you can’t afford it don’t buy it so that you will not be overwhelmed with the debts you owe.
October 26th, 2011 at 7:01 pm