My boyfriend has bad debt, and cannot deal with the collection agencys abuse. He has been given different options from different people. I need to know whats best for him.
I contacted American Credit Foundation http://www.debtguru.com/ which is a non profit credit counciling foundation that has agreed to make a payment plan so he can pay back the 2 creditors he owed. I figured this would give him a chance to build his credit back up.
On the other hand, his dad is telling him to just claim bankruptcy. he tried telling my boyfriend he would still be able to purchase a house within a few years.
Whos right, whats his best options.
2007-09-22 04:20:43 · 4 answers · asked by kel5204 1 in Business & Finance ➔ Personal Finance
The rules on bankruptcy have changed. Your boyfriend may not even qualify to file. Or he may be required to go Chapter 13 which is the payment plan route.
Bankruptcy will stay on his credit report for 10 years. The credit counseling will only impact his score while going thru it.
It is possible to buy a house a few years after a bankruptcy but you don't get the best rates and have to have a 2 year on time payment history.
It really depends on how much debt he has. Going thru the credit counseling and learning to budget and pay bills would certainly be better to learn good financial management..
2007-09-22 04:39:10 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
I would work with the non profit credit counseling. Bankruptcy is a long ordeal and should only be used as a very last resort when even working with a ccc is not a reasonable idea. Usually when you have more than 4 creditors and owe thousands of dollars you know you will never be able to pay off. Bankruptcy effects you for 7 straight years and then still stays on your credit report after that. Buying a home, car or whatever will always be effected, most often in the negative, as will the credit score. We declared because of medical bills and our mortgage application was denied because it had only been 2 years since we declared. Sincere best wishes on getting back on track.
2007-09-22 04:34:22 · answer #2 · answered by deblord2002 3 · 0⤊ 0⤋
No, this is not genuine. i'm an underwriter, and a former shopper. on your credit document, there will be a be conscious that the account is controlled with the aid of credit counseling. as long as you're making your money, it is going to be suggested the comparable way as in case you have not have been given it. whether, in case you prefer credit counseling, you have probable already broken your credit with the aid of making previous due money -- the only worst factor you're able to do -- and throughout having too intense a ratio of debt to credit availability -- the 2d worst -- and your debt ratio is probable too intense too. do not choose a "for income" tips ling service, like those you spot on television. shopper credit Counseling is the only stable decision.
2016-11-06 02:13:56 · answer #3 · answered by fones 4 · 0⤊ 0⤋
I work directly with a non-profit credit counseling program. All of our Counselors, including myself are certified through NIFCE (National Institute For Financial Counseling and Education)...it is an incredible program. Also, we work with another company that offers Debt Settlement, Credit Education, and Credit Restoration programs. We have alternatives to Bankruptcy.
If you would like more info, contact me. I would be glad to help. You can also visit my site: www.helpmycreditweb.com
2007-09-22 04:37:40 · answer #4 · answered by creporthelp 1 · 0⤊ 0⤋