If I filed for bankruptcy, what would it effect?

Question

My credit score...well, it's bad. I had a bunch of utilties from when I was 17 and 18 living on my own, and not caring about my credit, and hospital bills and medical bills and student loans bills. I don't know the exact amount of my debt. But it's big.
But now my husband and I would like to buy a house. What would be the advantages in filing for bankruptcy in this situation? Would it hurt more than help? Will it affect anything if my husband and I actually try to buy a house? Will filing affect my credit score?
Are there other options?

Also- what EXACTLY happens in a bankruptcy? the bills just...disappear?!

Answer 1

Your only option is to clean up your credit. You won't qualify for a mortgage with that track record and bankruptcy won't make your credit history more attractive. In either case, you're going to have to wait several years before you'll be able to qualify for a mortgage.

The laws have changed on bankruptcy. You may not qualify for chapter 7. You probably will have to file chapter 13 which is a repayment plan and could take up to 5, maybe 6 years to complete.

Get a copy of your credit report and start contacting your bad debts -- start with the newest and work backward to the oldest, as some of the older debts might fall off your credit report (7 year reporting period). You can probably settle a lot of your debt for 50%, provided you have cash in hand.

Paid off bad debt looks a lot better. Make sure you get settlement agreements in writing and insist the creditor mark the debt paid -- you can try to get them to remove it but don't count on that.

Answer 2

You should visit QUOTESDEAL.NET- I am sure here you can find the best option for you

RE If I filed for bankruptcy, what would it effect?

My credit score...well, it's bad. I had a bunch of utilties from when I was 17 and 18 living on my own, and not caring about my credit, and hospital bills and medical bills and student loans bills. I don't know the exact amount of my debt. But it's big.
But now my husband and I would like to buy a house. What would be the advantages in filing for bankruptcy in this situation? Would it hurt more than help? Will it affect anything if my husband and I actually try to buy a house? Will filing affect my credit score?
Are there other options?

Also- what EXACTLY happens in a bankruptcy? the bills just...disappear?!

Answer 3

Bankruptcy will kill your chances of getting a home any time soon. Student loans aren't bankrupt-able anyway.

Better idea is to get on a written budget and get these bills paid off.

Answer 4

as per this "expert"...

Bankruptcy – Chapter 7, 11, and 13 bankruptcies remain on your credit report for 10 years after the filing date. Chapter 13 bankruptcy records are sometimes removed after 7 years from the filing date based on the credit reporting agency policy. When you file for bankruptcy, all the accounts included should be marked as "Included in BK" and will each stay on your report for 7 years.

Charge-off accounts – If your delinquent account is charged-off, the record will stay on your credit report for 7 years.

Closed accounts – If the account has delinquencies, those marks will stay on your credit report for 7 years from the date they were reported. Positive closed accounts (with no delinquencies or late payments) can remain on your credit report for longer than 7 years.

Collection accounts – Accounts sent to collections will remain on your credit report for 7 years.This time period starts 181 days from the most recent delinquent period preceding collection activity on the account. The record will be marked as "paid collection" on your report when you pay the full balance. If you settle with the collections agency for a reduced amount be aware your record will state the account as "paid for less than the total due."

Inquiries – When a creditor or lender checks your credit it causes a "hard inquiry" to be listed on your credit report. These hard inquiries stay on your report for up to two years, and they can cause a slight drop in your credit score if there are too many of them. When your credit is checked by an employer or when you check your own credit online, you may see a harmless "soft inquiry" on your credit report. Soft inquiries do not cause a drop in your credit score and do not appear when a business checks your credit.

Judgments – Most judgments, including small claims, civil and child support, will remain on your credit report for 7 years from the filing date.

Late payments – If you are late with a payment, the 30-180 day delinquency can stay on your credit report for 7 years.

Tax Liens – City, county, state and federal tax liens are especially harmful and can remain on your credit report indefinitely. Once the lien is paid the record will remain on your credit report for 7 years from the payment date.

Answer 5

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RE:If I filed for bankruptcy, what would it effect?

Answer 6

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