246 People Helped
Member Since: December 2015
Not quite 10 years... if it's Chapter 7, it's ten years from being granted. If it's Chapter 13, it's only seven years from filing date.
Random789644's reply was:
I actually went and looked it up - depends on which type of bankruptcy you got. For Chapter 13, it's seven years (since you partially repaid debts). For Chapter 7, it's ten years from date granted (since you didn't repay anything).
1) CK uses the Vantage 3.0 scoring model, whereas most folks use FICO. The Vantage model is (usually) good enough to show improvements (or detriments) over time. --
2) CK contacts two of the three bureaus - Equifax and Transunion. The third bureau, Experian, doesn't share with anyone, and demands that you pay them a monthly fee to see their stuff. Experian may have your score so low that it dragged down the average, so you may want to get a copy of their report on you (just don;t get suckered into their introductory offer thingy and end up paying a $30/mo fee...)
Random789644's response was:
Depends on where you live, how old you are, your marital status, the vehicle (not its price, but type, age, etc) and your traffic record. If you're a 19-year-old single guy in New York City who had an accident and three tickets in the past two years and want to insure a shiny new Mercedes Benz, you will pay through the nose. If you're a 50-year-old empty-nester in BFE Wyoming with a perfect record and driving a beat-up old 2002 minivan, you'll pay next to nothing. When I was a punk kid in uniform stationed in Las Vegas, single, and driving a brand-new Jeep Wrangler fresh off the lot? My insurance payment was practically as big as the loan payment. Now I live in rural Oregon and drive one of two used vehicles that my wife and I own free and clear... and I pay more for cigarettes each month than I do for full-coverage insurance on both vehicles (that is, practically nothing). Long story short, you're probably going to have to ask an insurance agent (or two, preferably 3-4 different ones so that you can get some quotes and find the best price/coverage/etc.)
Note that sometimes you cannot convert a Chapter 13 to a Chapter 7. It all depends on your income and (to a smaller extent) the debt totals.
FYI - a Chapter 13 is not a consolidation of debts. Instead it reduces overall debt down to a certain fraction of what you owe overall. It does this by telling creditors of secured loans to (unless negotiated otherwise by the debtor) take their security and go away (e.g. a mortgage company who foreclosed on your home has to remain satisfied with only the money they got from auctioning off the house, and can no longer come after you for any shortfall.) Certain other unsecured loans may be written off as well, though I forgot what factors into that but of it.
The rest does go into a repayment plan, but it often does not repay the entire debt (even after you discount secured-loan creditors who got told to bugger off).
Now - that said, there are instances where a Chapter 13 can at least cut down the bleeding, and in some rare cases actually help your credit score. If you have a mortgage and auto loan which you and the court exempt from the bankruptcy proceedings (you're allowed to do this if the loan(s) are current), you still get good credit for continuing to pay those loans off faithfully, while the bad debts are halted and no further bad-reporting damage is done. You'll still get the hit of a bankruptcy entry on your credit report, but sometimes it's a lesser evil when compared to numerous creditors who continue to insert derogatory entries month after month.
Either way, always talk to a lawyer and make your decision based on your circumstances before using/avoiding bankruptcy.
Simplysue2u - FYI: Not always 10 years. A Chapter 7 bankruptcy stays on for 10 years, but a Chapter 13 stays on for only 7 (seven), due to the fact that you partially paid off the outstanding debts.
Bankruptcy is a calculation of how much debt you have, how many assets you have (of which equity is included), and how much income you get. Because of this, you will definitely have to get hold of a lawyer and let them help you make the call. Note that there are two main types of bankruptcy for individuals - Chapter 7 which writes it all off, and Chapter 13, which involved a partial repayment plan lasting from 3-5 years. Best advice is to contact a couple of bankruptcy lawyers in your town (or nearest city) and talk to them... most of them have a free initial consultation, and can give you a good picture of what type of bankruptcy you can file for (e.g. if you make too much money or your overall debt isn't large enough, you're doing Chapter 13).
If the tax preparer screwed up, they can be quite liable for any money owed by you. Contact them first and foremost. Also contact the state authorities and point out the tax preparer name and # that should be at the bottom of your tax return, and start working on payments with them. --
The reason you want to start working on payments is to prevent negative reports from piling up on your reports, while you work on having H&R Block pay them for the error, and to pay you for what you've paid into it thus far.
You could put more money into that secured card (say, if it's a $500 secured card, you save up and drop an additional $500, which bumps it's limit to $1000)... and then switch to an unsecured card later on once your score goes up enough to do so. Also, you may have to wait for any derogatory/collection accounts to drop off the reports.