I am not really sure how it works.. but I am trying to get my boyfriend's credit back in order.. I did the free credit report thing.. and his score is not that bad, it's 607.. but he owes about 5 different agencies and it totals about $4,500.
Within those accounts totaling 4500.. there are 2 collection accounts and 3 delinquent. He has one on there from about 7 years ago also. I am new to this myself.. I'm 20 and learning all the nooks and crannies about credit and I want to know how to he can help out his credit now. THANKS!!
2007-03-13 00:20:06 · 4 answers · asked by Ally, THAT girl 1 in Business & Finance ➔ Credit
$4500 is not all that much.
Under the new bankruptcy laws, there is a means test now. I'm guessing with $4500, he would not be eligible for bankruptcy.
He needs to call each of the creditors and work out a payment plan and then stick to it. If he will start making on time payments and get this stuff paid off, his credit score will improve.
I do have one more question for you though. He created this mess. I understand you wanting to help him muddle his way through it but it's not going to be very meaningful to him if he doesn't fix this himself. He'll be looking to you to bail him out the next time he forgets to pay his bills.
2007-03-13 00:27:24 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
The means test is not about amount of debt. It pertains to amount of income. A person who makes less than the median income may file a case under chapter 7.
BUT ---- why would anyone file a bankruptcy for only $4,500 of debt. Can't he get some work and pay this debt off? I think it is probably unethical for an attorney to file a chapter 7 case for a young person under such circumstances unless he or she is disabled and will never be able to work again.
Bankruptcy is a last resort and not a first resort. It is not worth discharging $4,500 in debts for a young person to be stuck with bankruptcy on the credit report for 10 years. I am assuming your boyfriend is about your age.
This person should get work or extra work as needed to pay these debts.
2007-03-14 00:06:37 · answer #2 · answered by DLeibowitz 5 · 0⤊ 0⤋
I think the law recently changed to where you can't claim bankruptcy until your at least $15,000 in debt. Googl er oops, I mean yahoo bankruptcy. Tell him to stick it out and pay off his debt. It'll take a year of hard work. I was in a similar situation, except I was about $7000 in debt, and I had a $500 car payment. I eventually paid everything off. Bankruptcy will ruin your credit for a very very long time. If he plans on getting a car, house, or even a decent insurance quote within the next seven years, tell him to hold off on the bankruptcy. Also 607 isn't bad at all. If he pays someone to fix his credit when hes outta debt, it can bring his score up to at least 650+
2007-03-13 00:34:56 · answer #3 · answered by LocarbHotrod 1 · 0⤊ 0⤋
I agree with Faye H.
2007-03-13 02:34:16 · answer #4 · answered by ? 7 · 0⤊ 0⤋