Even if you file for bankruptcy the results are the same as if u waited for 6 years for your debt to be wiped off right? or what is the difference if u wait 6 years for ur debt to be wiped off & filing for bankruptcy?
2007-10-30 05:44:42 · 25 answers · asked by Anonymous in Business & Finance ➔ Credit
Negative information such as late pays, charge-offs and collection accounts are purged from your credit report after 7 years. This is 7 years from the date you first paid late and never brought the account current again. This does not make the debt go away - creditors can try to collect on an account forever. However, creditors only have a limited amount of time to take legal action. This is called the Statute of Limitations, and this varies depending on what state you reside in. It is important to note that the statute of limitations and reporting period on your credit report are totally independent of each other. For instance, if your state has a long statute of limitations, you can still get sued even though the bad debt disappeared from your credit report. The opposite can happen also. You can have a debt that is too old for a creditor to file suit, but still have it reported as a bad debt to the credit bureaus for years.
Filing bankruptcy basically gives you protection against creditors. If you are being hounded with phone calls and letters by your creditors, filing bankruptcy will put a halt on all collection activity. If you are in the process of being sued or are having your wages garnished, bankruptcy will put an immediate halt to these actions. If your income is too high, you may still have to pay a percentage of the debt back even if you filed bankruptcy.
2007-10-30 18:42:37 · answer #1 · answered by ? 4 · 1⤊ 0⤋
At this site you can find solutions from different companies: FINANCE-SOLUTIONS.INFO-
RE Whats the point of filing for bankruptcy when your credit card denbt can be wiped off after 6 years?
Even if you file for bankruptcy the results are the same as if u waited for 6 years for your debt to be wiped off right? or what is the difference if u wait 6 years for ur debt to be wiped off & filing for bankruptcy?
2014-10-02 09:20:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most people file for Bankruptcy because they don't just owe money to one source but to several other sources too. The good thing about claiming for Bankruptcy is that you are not liable to pay any of the debt that you have incurred after the Bankruptcy proceeding has taken place. You won't have any more debt collectors chasing you for money, and even if you are declared bankrupt you can still get a mortgage and limited credit, whereas it is nigh-on impossible if you don't.
Bev C is right, Credit companies will still give you limited credit, due to the fact that they consider that you have addressed your debt problem, and also because they realise that they can charge more interest on the money they lend you just because you are a Bankruptee.
Oh and keeping away from debt collectors doesn't work as your bad credit rating, and unwillingness to pay debt, goes down on file with Experion, and a few other agencies.Just moving around from place to place has no bearing on the debt whatsoever!!!
2007-10-30 12:51:01 · answer #3 · answered by princekeyuk 4 · 0⤊ 0⤋
I don't know what state you are in, but the statute of limitations for credit card debt (a written contract) is typically 10 years. And if you don't get a discharge of the debt, you are likely going to be sued. Once you are sued, judgments are good for 10 years and are renewable. Bankruptcy will stop all that, even if you had a judgment against you a bankruptcy would wipe the debt away. Plus it is illegal for creditors to contact you once you file. But if you don't file, you will get collectors harrassing you well beyond the statute of limitations period (and it runs from the date of your last payment).
You can't file another chapter 7 for 8 years if you file so it is actually quite easy to get credit because creditors know you can't file any time soon.
Also, you DO get a discharge with chapter 13. Not all people pay 100% of their debt during a chapter 13, it really depends on your disposable income and assets as to how much of your debt you pay. Student loans, child support, etc don't go away (and if you ever are ordered to pay child support, many states have no statute of limitations for it so you can't just wait it out).
If you don't see the point of filing bankruptcy, then don't. But don't assume no one is going to try to collect debts from you. If you get a judgment against you, your wages will be garnished, and they can garnish your bank accounts and put a lien on your house.
2007-11-01 22:30:00 · answer #4 · answered by Lesley 5 · 0⤊ 0⤋
The only way to wipe away debt is to pay it off... or, if you feel that you don't owe the money (someone stole your identity for instance), dispute it.
There are cases where, if you had some old debts, and you mailed a dispute that you didn't actually have the debt, and the company you owe the money to is not in business anymore, or they can not find the information from your contract, it can be cleared off.
However, if I was loaning money, I believe I would keep some pretty good records.
2007-10-30 12:57:40 · answer #5 · answered by centexdance 3 · 0⤊ 0⤋
Believe it or not. Most credit agencies have no probleem loaning money to someone who has filed Bankruptcy because they know you can not again for 7 years. However if trying to get credit with a bad rating good luck. Your Life could change before the 6 years is up. You may need a car, home etc... If you truly can not make these payments bankruptcy would be your best bet.
2007-10-30 12:50:12 · answer #6 · answered by Beverly C 3 · 0⤊ 1⤋
but you will be pursued with a vengeance by the debt collectors in the meantime. I think what you mean by the 6 years reference is that your credit is clean again after 6 years, But you still have to pay the debt first!
I think people go bankrupt so they can officially avoid having to pay the debt. But bankruptcy ruins their credit rating for many years to come.
2007-10-30 12:49:40 · answer #7 · answered by SLF 6 · 0⤊ 0⤋
Bankruptcy is not just for credit card debt. If you are a homeowner and are facing foreclosure, bankruptcy may be a way for you to reorganize your debts and save your home. (that is if you are employed.).
Also, bankruptcy gives a fresh start to those who find themselves drowning in debt. There may also be medical bills or other bills that they cannot pay. Bankruptcy can either discharge them (chapter 7) or allow the debtor to reorganize and pay them over a longer period of time. (chapter 13).
2007-10-30 12:50:00 · answer #8 · answered by CGordo 4 · 1⤊ 0⤋
Because if you just leave it for 6 years then you will be continually chased by debt collection agencies, courts, ballifs, solicitors etc.
Also with bankruptcy the debt is written off. This is not the case if you just leave it, although it becomes unenforceable after 6 years the debt still exists.
2007-10-30 12:47:58 · answer #9 · answered by Heather M 2 · 2⤊ 0⤋
The key to this question I think is that your debts are only wiped out after six years if you manage to avoid your creditors for this length of time after the last payment you have made to them. This might prove a little difficult. I think that should they trace any time within that six year time frame they can just restart any debt recovery process and you are then isn to a another six year cycle. Hope this makes some sense
2007-10-30 12:51:11 · answer #10 · answered by ketkonen 7 · 0⤊ 0⤋