Me and my hubby both have some negative credit issues from the past, we have a baby coming and don't really see how we can consolidate our debt and pay yet another monthly bill. We were thinking about filing and starting over fresh. Has any1 else done this and if so what pos or neg impact has it had on you(ie prevented you from getting a car, house or whatever) I know it takes awhile(like 7 years i think) to be to get exonerated from your credit record but after that were you able to obtain more credit easily? Please be descriptive in your answers we really want good info so we can make an informed decision if we should even look into it or not. Thank.
2006-12-20 23:41:10 · 5 answers · asked by 1st- time- preggers 1 in Business & Finance ➔ Credit
If you owe more than you make and it would take you longer than 2 years to pay off your debt, it makes sense to file. Why? Because you can recover from BK faster than it would take you to repair your already damaged credit. If you file, immediately open a secured credit card and pay it on time, never missing a payment. Lots of people don't know you can qualify for an FHA mortgage 2 years out of BK, and as mentioned before you will get lots of offers unless you opt out. BK is not the black mark it once was, and I would rather start fresh than deal with creditors and collection agencies for years, only to not have your credit back where it was. Even though it stays on your credit for 10 years, you can still re-establish credit well before then.
2006-12-21 03:32:16 · answer #1 · answered by Kevin K 3 · 0⤊ 0⤋
It actually takes 10 years from the date the bankruptcy is filed for it to come off your credit record, although some people have been able to get credit after just 2-3 years. Remember that even if you are approved for some types of credit, it means much higher interest rates. Also, if the bankruptcy judge decides you don't need to file bankruptcy and are just filing to avoid paying bills, the bankruptcy can be dismissed - but it still stays on the credit file for 10 years as a dismissed bankruptcy.
2006-12-20 23:48:04 · answer #2 · answered by RedSoxFan 4 · 0⤊ 0⤋
If your payments have been late, or non-existant, your credit already looks like bad, and will continue to look bad for around 7 years.
With the new bankruptcy laws, you may end up paying a consolidated debt anyway. If I were you, I would go consult with a lawyer to see what the best bet is. You may find out that you are better off consolidating, vs. bankruptcy.
Congrats on the new baby and good luck.
2006-12-20 23:51:12 · answer #3 · answered by Gem 7 · 0⤊ 0⤋
we just finished doing it before the new laws came into effect. The only negative we've found is all the lending institutions call all the time trying to give us high interest credit cards and sell us crap...knowing that we won't be able to file again for 10 years.
2006-12-20 23:49:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
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2016-12-11 13:32:21 · answer #5 · answered by ? 4 · 0⤊ 0⤋