How soon can you start to build your numbers back up if you choose either option?
2007-11-05 15:32:23 · 8 answers · asked by Greergurl787 2 in Business & Finance ➔ Credit
I have to disagree with some of the comments made by others..
Charge-offs basically are when a company writes off your debt to bad debt loss. Now, does this mean your nightmare is over.. Not by the least.. Collection agencies will pick up your debt and put another bad mark on your credit report... Now, a chargeoff can easily lower your score by 50 points or more, coupled with a collection agency can lower it another 50 points or more. Unlike what someone else said on here, a charge off cannot be renewed. The only item which can be renewed is a judgement.
A bankruptcy should be a last resort. Now, keep in mind.. If you do file for bankruptcy, you will either indemnify yourself of all debt or some of it (depending on how bankruptcy court decides)... Even though a bankruptcy stays on your record for 10 years, I remember hearing an important tip years ago... Dispute a bankruptcy after 3 years... This was weird but has been proven to work.. The courthouses keep track of these records for three years before taking records offsite.. After that time, courthouses would rather allow the dispute to fall off than pay a few thousand dollars to search through boxes and boxes of files for documents... With a bankruptcy, you can be back to normal within 2 years...
Hope that helps.. e-mail if questions..
2007-11-05 16:24:08 · answer #1 · answered by MBATXguy 4 · 0⤊ 0⤋
A charge off is much worse than a bankruptcy! A charge off stays on your credit report for up to 10 years and can be renewed if the debt is sold to another debt collector.
A bankruptcy clears all debts, including charge off's and you can start to rebuild your credit immediately!
Look at my website below. I went through Identity theft and a bankruptcy and I got my credit score up from 486 to 729 in a little over a year. There are so many misconceptions about credit and credit scoring and I went through all the scams and wasted a lot of time until I decided to fight back!
You will like the how scoring works section!
2007-11-05 15:51:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No brainer: Bankruptcy much worse than a charge-off. Your credit score is most heavily influenced by what's happened in the past 24 months....so if you've had a financial train wreck...resign yourself to having bad credit for at least that amount of time...If all goes well, after two years your credit will start to improve.
2007-11-05 15:49:38 · answer #3 · answered by CatDad 7 · 0⤊ 0⤋
I know one person who filed for bankruptcy twice. I know another person who foreclosed on two houses back to back in ten years time. My mother has debt-consolidated (like an idiot) for maxing out her credit card for the second time, and for the same amount (40,000 dollars), and still uses credit cards. I don't know what a charge-off is. I know that a bankruptcy basically does you in. So, all you have to do is pay more than the minimum balance each month. I have medical bills: $800 is my balance from starting at $1600, and since the thought of any kind of debt makes me sick to my stomach, I send a large sum to pay it off each month. To most people who have debt, $800 is small potatoes, but to me, any kind of debt in any amount is bad. Be responsible and pay off all your debts and use cash--ALWAYS!!! Don't become like my freaking mother and explore irresponsibility. I think it's very simple advice and easy to stick with. Good luck.
2007-11-05 15:45:48 · answer #4 · answered by Anonymous · 0⤊ 1⤋
sure you may append a observe on your checklist that explains which you probably did no longer comprehend that this replaced right into a credit card on your call that replaced into taken out by way of somebody else and that the debt wasn't yours. purely write to the three credit reporting bureaus and ask that they incorporate the reason you supply them with regard to the debt. That way a minimum of you will possibly have some information approximately your undesirable debt on there. And in case you preserve on with for credit on your very own call soemwhere else you may append this comparable information on your utility.
2016-11-10 10:12:01 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Bankruptcy has a more effect than a charge off... the business is helping you to reduce debt rather than all debt... Charge offs are faster too and don't cost you extra like lawyer or court chargers...
2007-11-05 15:42:36 · answer #6 · answered by ? 7 · 0⤊ 1⤋
bankruptcy or debt CON-solidation will pretty much trash your credit. Do both and you are toast.
2007-11-05 15:37:10 · answer #7 · answered by tito_smootz 2 · 0⤊ 1⤋
bankruptsy is worse.
2007-11-05 15:35:12 · answer #8 · answered by Anonymous · 0⤊ 1⤋