if you file bankruptcy, how can you ever repair the damage done to your credit?

Question

I am unemployed, 50 yrs. of age, no money in the bank, no savings, no retirement, no job. How can I save myself from this mess?

Answer 1

You have a chance to improve your credit rating and therefore brighten up your financial future by being patient, a conscious effort, and a personal debt repayment to improve your credit report. The most practical and effective way to truly improve credit is through a number of practical steps designed to help you not only improve your credit rating but also to maintain a decent credit rating once it has improved. No matter how bad your credit is, taking following steps will make it better.

STEP 1: Dispute Inaccurate Information or Frauds in Your Credit Report
STEP 2: Pay all of your bills on time
STEP 3: Reduce the number of credit cards you carry
STEP 4: Avoid bankruptcies, tax liens and collections
STEP 5: Request for Lower Credit Limits
STEP 6: Get a Small Loan or Credit Card with Co-Signer
STEP 7: Get a Secured Credit Card
STEP 8: Periodically Get a Copy of Your Credit Report

Find complete explanation for each step at:
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php

Answer 2

It is certainly rough, especially at your age. The secret to reparing your credit is budgetting and time. It will take 7-10 years for the bankruptcy to come off of your credit report. Finding a job is pretty much a must, too. You do not say here why you are unemployed, but remedying that situation is the first step toward fixing your credit.

Other things you can do are:

1. Get a copy of your credit report and make sure there are no errors on it that will make it worse. Errors DO happen. You can legally get your credit report for free online, once a year.

2. Repay your debts (which means getting a job), starting with the high interest ones. If you have no debts, then you're on the road to better credit already! Hopefully your bankruptcy already covered this part.

3. Contact a non-profit credit counseling organization if you have debt problems still. Do NOT contact debt-consolidation loan organizations or places that claim they can fix your credit for a fee. They are scams.

4. Live according to your means. Set a budget and stick to it.

5. Don't go into debt again. Cut up your high-rate credit cards. Do not get another unless you are DEBT FREE. If you are, then go ahead and get a small one and use it wisely, perferably only when you ALREADY have the money to pay it back. This will build up good credit for you. Use it, then pay it off right away. If you do not have money in the bank for something, don't buy it.

6. Pay all your bills and rents promptly. Do not be late!

There is a book out called "How to Fix Your Credit" that might be useful to you. It is on Amazon.com and Walmart.com for really cheap, too. That said, none of this will do you a lick of good if you have no income. Find a job! If you are handicapped or have some kind of obstacle, find a way to overcome it. There has to be SOMETHING that you can do. You'll never fix your credit if you are not bringing in an income. This is a must. Go to a temp-agency. Apply at local grocery stores or restaurants. Whatever you have to do, work! Good luck!

Answer 3

Okay, I'm no expert but here is my story. My wife lost her job and we had a ton of bills. We went to one of the credit management places like you see on TV. The lady assured us that we were doing the right thing by not filling bankruptcy and that credit management would not have a negative impact on our credit...WRONG!!! I find out latter that being under credit management is worse than bankruptcy. I could not buy a car, get a credit card or anything else related to credit. I filled bankruptcy, walked away from thousands in unsecured debt and was able to purchase a new car and a new home within a year. It has been almost 7 years now and my credit is almost perfect. This is just my experience. Do your homework before taking such a drastic measure.

Answer 4

I will try to be brief. Sounds like you are having a tough time right now. As my mother always said, this too will pass.
Bankruptcy, as a rule, stays on your credit reports for 10 years. Now, keep in mind that bankruptcy isn't what it used to be. In the olden days, that is a few years ago, you could file and wipe out all your debt. This is not so today. At best you will get a payment plan, but you have to pay it all back, regardless.
With that said, you sort of have two options. One, speak to each of your creditors and explain your situation and try to work out a legitimate payment plan, even if its only $10 a month. Some may accept, others may not. Those that do not accept may call a collection agency but thats about it. You might even be able to haggle with them, not likely, but you never know.
With that plan you will have some severe deliquencies on your report, but not a bankruptcy.
The other option is to file for bankruptcy and let the courts set a payment plan for you and just live with it.
There is life after filing. You can get credit, its just that you will be a very poor credit risk and your interest will be very high. This high interest will make it impossible to buy a house, but you can get a car, maybe even get a credit card. You are generally just penalized by paying much higher interest and not everyone will offer your credit. You will have to shop around, use finance companies as opposed to banks, and that sort of thing.
During your ten years continue to use credit, pay it off on time, pay off your bills, ect, ect, and one day it will all fall off and your record will be clean.
Best of luck.

Answer 5

You sound like you are planing to file bankruptcy. DON'T DO IT. The last job you had, how much did it pay per year? Multiply that by 5, if the answer is less than or equal to the amount of money you owe. See a credit councilor, and file bankruptcy if you can't find any other solution. GOODCREDIT.COM (http://www.) should be before this name, I like their service.

IF what you owe is less, you have to save everything that you can get. You have to learn to build supports into your life (live with someone that can help with the expenses so you can save more). The way we structure our lives is the reason we succeed or fail.

Answer 6

Get a job, first. Pay your bills on time. In about 2 years you will start getting offers from credit card companies and people wanting to finance your car. Work two jobs if you can and save whatever you can for retirement. It'll work out.

Answer 7

don't declare bankruptcy at that age! try to work some deal with the creditors, go some not for profit credit managing companies to help u

and why r u 50 and not have a job? someone like u should be juggling 3 jobs during 24 hours, ANYTHING!

Answer 8

I filled bankruptcy back in 1990 because of medical depts due to my husband (now x) and firt bankruptcy only showes up on your credit history for 7 years also my attorney told me to go to a bank and ask for a small lone after 3 payments pay it off and ask for a bigger one keep repeating this prosses to optain credit but leave the money in a account in the bank sat aside for just this purpose.Also make small payments to the bills even if its only 10$ a month because if you are making a atemped to pay them they can not turn it over to a collection agent.Good luck!!!

Answer 9

It would take a long time to repair your credit if you file bankruptcy. The only way to repair your credit is keep a steady job & pay your bills on time.

Answer 10

Nothing in my commentary is meant to improperly solicit a client in a state wherein I am not licensed. You are in excellent shape. From what you have said, your financial difficulties are due in large part to a natural disaster and a flood. Was the flood something you caused by leaving the water on? If it is another natural disaster, you are really fortunate. There are a number of simple steps you can take to solve some of your problems. Over fifty years ago, my mother was a divorced parent of three young children who, like you, did not receive support. If you would like some free advice, please contact me through Yahoo Answers. You can have a significant portion of my time IF and only IF you are willing to follow ethical instructions and not violate any law. You are in very good shape to have some of your financial problems ended rather promptly.