I was thinking that I should file bankrupt so that I could rebuild my credit in order to buy a home. Do you think that is a good move or not? I want to pay all this bad credit off but it is so hard when you got your monthly bills,rent etc. Help!!!!????
2007-02-15 15:53:54 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
Consider that a bankruptcy will stay on your credit report for the next ten years. Any lat e payments will be erased after seven years.
2007-02-15 16:01:43 · answer #1 · answered by Ti 7 · 0⤊ 1⤋
Bankruptcy is not a good move. Also, the laws have changed. In short, if you work and average over $18K a year you cannot file bankruptcy. If you try you'll be directed to a debt counselor. If a home is your goal and you have more debt than you can handle you do have options. Many options.
Firstly, get a copy of your credit report with the score. If your score is less than 660 you need credit help. Don't even think twice. If your score is above 500 you can get a home however your rate will be high and you'll need at least a 10% down payment.
Secondly, stop spending. Seek debt help, a good place to start is http://www.YourGuideToCredit.com The advantage of their program (and most others) is that once enrolled your score will start to increase due to consistent on time payments. Once you've reached your ninth month you should be stable enough to start looking for a home.
Don't despair, there is hope and there is help.
2007-02-15 16:16:14 · answer #2 · answered by Donald Martin 1 · 0⤊ 1⤋
As a mortgage broker I can tell you that filling for bankrupcy will not help you in rebuilding your credit. Here's a few things that I would recommend first:
1) Speak to all the creditors and tell them you are having problems and ask them, in the case of a credit card for lower interest payments, and then cut up the card.
2)Go to the bank and ask for a consolidation loan. I would recommend going to your bank with a planned monthly budget to show how you are going to live. At least this will show your bank that you have at least tried to take control of your situation.
3) refinance any loans you may have for a longer term, your trying to regain as much income as possible. You'll pay more interst in the long run but right now your trying to avoid bankrupcy.
4) Start with the highest interest bearing debt and try to pay them off first
5)I would take a good look at your monthly expenses and get rid of all the luxuries that you don't need. this is the toughest part because you will say to yourself that you deserve them for working hard. But tough times call for tough measures.
6) Sell something, have a garage sale, if your like me you will have a ton of stuff just making a mess in a basement or garage
7) Get a part time job or work overtime, use the income to pay down debts
8) cut up your debit card and give yourself a weekly cash allowance, having no debit card will cut down on impulse buying
9) Try to switch your credit card to a card that has a low intriductory balance, usually 6 months. This way you can pay off faster with the same payments
10) Pay more than the minimum, even $5 - $10 will help you chip away at the principle.
This may help you but I can tell from first hand experience that you will have a good few years of trouble rebuilding your credit before anyone will lend you money for a mortgae if you choose bankrupcy. You can contact me at www.albertamortgageguy.com if you want any more help.
2007-02-15 16:27:53 · answer #3 · answered by Anonymous · 0⤊ 1⤋
This would be a last resort.
It takes 7 years to wipe the slate clean.
Once you declare bankruptcy it is difficult to to start new.
You would be better off consolidating all your credit problems in one payment. Tear up credit all cards and have one monthly payment instead of being charged 18% on each one.
2007-02-15 16:08:21 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Yes...............definitely
How to Avoid Bankruptcy Explained: With the rising consumerism, aggressive advertising campaigns and increasing incomes, people are living well beyond their means. As a result, they are burdened with heavy debts. If they are unable to repay the dues, they have to file bankruptcy. Bankruptcy is the last resort when you are reeling under financial problems
2007-02-15 22:39:04 · answer #5 · answered by mey t 2 · 0⤊ 0⤋
Yes, Bankrupt! I would give up and declare bankruptcy because you have so many bills to pay!
2007-02-15 16:51:35 · answer #6 · answered by Anonymous · 0⤊ 1⤋
NEGATIVE, MAN!
BANKRUPTCY SHOWS ON YOUR CREDIT REPORTS FOR A FULL 10 YEARS. BUYING A HOME WILL BE NEXT TO IMPOSSIBLE. WOULD YOU LOAN MONEY TO SOMEONE WHO MANAGED TO RUN UP HIS DEBT AND THEN COP-OUT? BANKRUPTCY PUTS YOUR CREDIT SCORE RIGHT IN THE OLD PORCELAIN FACILITY (TOILET).
TRY NEGOTIATING WITH YOUR CREDITORS FOR LOWER APR AND/OR OFFERING TO SETTLE A DEBT. YOU MAY HAVE TO DO SOME RESEARCH TO FIND A TRULY REPUTABLE AGENCY TO HELP YOU WITH THIS; THERE ARE LOTS OF SCAMMERS OUT THERE.
GOOD LUCK.
2007-02-15 16:04:15 · answer #7 · answered by Moe J 3 · 0⤊ 1⤋
Try going to the website below
2007-02-15 21:51:57 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You should have thought of that before you ran up all of those bills, to file bankruptcy is such a cop out!
you made your bed now you can lie in it! don't be a wimp.
2007-02-15 15:58:00 · answer #9 · answered by Meli 5 · 2⤊ 2⤋
pay your bills! bankruptcy is for 7 years
2007-02-15 16:02:22 · answer #10 · answered by Daisy Mae 4 · 0⤊ 1⤋