2007-08-20 08:25:52 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
The first poster is correct as far as he goes.
Having been through this my self back in 2001 I can tell you it's really not that bad.
If you qualify for chapter 7, all of your debts will be discharged except any that you reaffirmed on.
I had a Ford account that I reaffirmed on and made sure they continued to report to the credit bureaus. After 1-year I bought a brand new car at 3.9% interest with no money down. After another years I bought a home at 6.5% fixed interest and no money down.
I now have better credit then I did before by bankruptcy. Over 750 score.
If you do this, the thing you need to do is start re-establishing your credit as soon as your BK discharges. That way after a couple of years if you handle things correctly, you will have good credit again.
2007-08-20 08:53:37 · answer #1 · answered by ? 7 · 0⤊ 1⤋
Well, for starters, if you file bankruptcy, it will remain on your credit report for 7 years. All of the accounts included in your bankruptcy filing will be visible on your credit report. After 7 years, the bankruptcy will fall off your credit report, but it's not like you'll be able to hide it. Potential lenders will ask you why there is a gap in your credit history, and you'll have to tell them why.
It is going to become increasingly more difficult for people to get mortgages, and this will be especially true for anyone who's filed bankruptcy. It may be a long, long time before you're able to buy a house.
It will also be difficult to rent an apartment, get a car loan, and maybe even get a credit card. If you get married, and your new spouse has good credit, that will help you. The spouse can add you to his/her accounts, and you can start to rebuild your credit. It's a long, tough road by yourself.
Trust me, I know. My sister filed bankruptcy 17 years ago, and occasionally she still runs into problems with her credit, even though she began rebuilding as soon as her bankruptcy was discharged.
2007-08-20 16:11:52 · answer #2 · answered by Christie 4 · 0⤊ 0⤋
Public record for the rest of your life even after it falls off of your credit report.
Whenever applying for new credit in the future if asked whether you filed bankruptcy you by law must say yes. This is for the rest of your life.
I have heard from some people that it really hasnt been that bad for them, however I have heard from others that they really wish they would of exercised all other options before going into bankruptcy.
Plus if you can only qualify for chapter 13 then the court controls your income and dictates to you how much you must pay back and for how long. Not very pretty.
2007-08-20 16:21:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It stays on your credit history for 10 years, affecting your credit score. You'll have to pay higher interest for any loans.
Your car insurance rates will increase.
You won't be eligible for some employment.
2007-08-20 15:33:05 · answer #4 · answered by bdancer222 7 · 0⤊ 0⤋