2006-06-16 14:05:38 · 19 answers · asked by dd.nurse 1 in Business & Finance ➔ Credit
Bankruptcy goes on your credit report for 10 years... whether Chp. 7 or Chp. 13.
Your score will not repair itself... You have to repair it by establishing good credit "history" (payment history) and by paying off the delinquent debts.
The longest any item, other than bankruptcy, can stay on your report is 7 years, but that does not mean that you no longer owe the monies to the creditors.
To answer your question would require a full understanding of the situation, because every situation is different and filing bankruptcy doesn't always address the root of the issue that caused the financial distress (i.e. bad habits, marital issues, etc.). So that person should consider seeking legal advice or credit counseling.
2006-06-16 16:02:10 · answer #1 · answered by Stone 1 · 0⤊ 0⤋
I'm not sure what you mean by waiting 7 years for your credit to heal itself, but I would avoid bankruptcy if at all possible. Go to the Consumer Credit Counseling Service or some other accredited credit counseling service. They may be able to help you out of your financial mess without filing bankruptcy.
Having been raised to pay my bills I was mortified when I had to file for bankruptcy protection when my ex-husband ran up our credit card debt after we were separated, but before we were divorced. I had my 2 kids to support on $10,000 a year. So I filed for bankruptcy. I was so humiliated. I wish there had been a better way out. That was over 20 years ago.
2006-06-16 14:41:17 · answer #2 · answered by celticwoman777 6 · 0⤊ 0⤋
Filing bankruptcy is bad. Yes you can get credit after it has cleared off your record, but that is ten years after it has been pushed through the system. Debt consolidation is filing bankruptcy, just a different form of it. If I was you, I would try to get on the ball, start getting payments up and keeping them there. If this is not an option then i would file bankruptcy, it should only be a last resort not an easy way out of doing your own finances.
2006-06-16 14:17:11 · answer #3 · answered by bludyone 2 · 0⤊ 0⤋
The only way I would file bankruptcy is if I did not have a job. If you have money coming in then do not file bankruptcy. Send in a payment every month even if it is $10. With your payment send a letter stating your situation and that you will make a payment every month. Do not default on the loan.
Call the creditors...its work, but you got yourself in this situation. Don't use credit cards anymore - pay your basic living expenses first (house, electricity, grocery), pay your debt next. Anything left over - give yourself some to live on for two weeks and the rest goes to the lowest balance to help pay that off.
If you need help making a budget let me know. I did financial counseling for several years.
2006-06-16 14:16:25 · answer #4 · answered by totalstressor 4 · 0⤊ 0⤋
A person should never just file bankruptcy. It should be a last resort. Every month, it seems, states are creating more laws to make filing bankruptcy more and more difficult. The truth is it's wrong to not fully pay the people you owe and the government is finally starting to catch on to that.
That being said, there is a time to file for bankruptcy but I suggest you checking out a consolidation credit office first. They can get your bills consolidated and lowered.
Good luck!
2006-06-16 14:10:25 · answer #5 · answered by Scadle 4 · 0⤊ 0⤋
well, the record of filing bankruptcy stays with you for ten years..... I think. But seven years is a long time. The thing that sucks though, is if you file bankruptcy and can't pay someone like a credit card co. then they can come back and ask or sue you for that money later.
2006-06-16 14:11:03 · answer #6 · answered by Doot 3 · 0⤊ 0⤋
You should do what you can to avoid filing bankruptcy as that stays with you for quite some time. If things are way out of hand your best bet is to find a credible credit counseling service. They will work with creditors to lower or remove your finance charges, and come up with a budget for you to live by to teach you how to live within your means, and the monthly payment for your credit card debt will be put into one easy and affordable payment each month. It will help reduce your debt and keep you in better standing on your credit report as well...hope it helps
2006-06-16 14:20:04 · answer #7 · answered by kddr1977 1 · 0⤊ 0⤋
Actually, it is becoming more difficult to file bankruptcy. My husband and I went to a credit consultant which was the best thing. Companies appreciate your effort to pay, the payments are made smaller and you pay to the consulting company, then they disburse it to your creditors. Some of the creditors will cut down the amount you owe, also. Be sure to research the consulting companies as some, of course, are better than others. I think Consumer Credit Counseling is the best.
2006-06-16 15:29:23 · answer #8 · answered by barbwarr519 1 · 0⤊ 0⤋
The last thing you want to do is declare bankruptcy. It not always 7 years most placing it is 10 years. The best thing to do, is go to a consultancy company. They package your bills into a smaller size. Work with your creditors, so phone stop ringing. Teach you how to handle your money.
2006-06-16 14:16:17 · answer #9 · answered by sherry t 2 · 0⤊ 0⤋
declare bankruptcy will you still can. late pay is actually worse than the bankruptcy, it never drops off your credit. bankruptcy is your better bet since your forgiven after 7 years
2006-06-16 14:09:49 · answer #10 · answered by Rocker 1 · 0⤊ 0⤋