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Question By
Bigguy2008

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Is bankruptcy Chapter 7 good for you Credit

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It can Be

Helpful to 14 out of 14 people

My credit score increased by nearly 100 after bankruptcy. If your score is already low ( mine was in the high 500's) your score should increase after bankruptcy. Speak with your attorney. 

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Reply by
jloes

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25 People Helped
Helpful to 1 out of 4 people

I was thinking of applying for a bankruptcy form because i have no other options, I’m on a fixed income and cannot afford new things like auto loan, mortgage loan. My insurance premiums increased and the interest rate has hindered me from getting some benefits and securing a job I wish. I came across a comment of a man on a blog giving kudos to EXCELLENT REPAIRS for job well done in clearing off his debts and fixing his bad credit report. I took a risk by hiring him to fix my credit. I’m happy to tell you that my credit was fixed within 5-6 days by this exceptional credit expert. I was impressed by his work and that’s the reason I’m recommending him as well. You can reach him at yatesnovakovic @ g m a i l . c o m 

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Dave ramsey

Helpful to 16 out of 17 people

He is a man who made human errors as we all do, filled for chapter 7 and started. Clean slate. I highly recommend reading his books ( total money make over)!
Don't lose hope, sometimes it has to be done but he will guide you to a new financial way of life! Trust me!
Keep the faith, " live like no one else, so later you can live like no one else!"
God bless

2 Contributions
12 People Helped

Depends

Helpful to 12 out of 12 people

Total all debts, interest rates. Numer of people living in the home. Total you monthly payment to pay all your bills per month and your income per month. Total income of all.  Find the means ratio for your state.  Decide what property you want to keep, there is only a certain amount according to chapter 7. Find out what the laws are in your state.  Make an appt with an attorney with bankruptcy experience. Discuss it with him. See which type of bankruptcy is best.  I went and I found out I was way under water. I was usuing credit cards to put food on the table. That's how much in debt I was, thanks to student loans, and some ungrateful adult children.  Work all that out first, then see an attorney.

You won't have any debt after bankruptcy. It may take a year, but you can build up your credit and be fine. 

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Reply by
mollydee

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41 People Helped
Helpful to 5 out of 10 people

Lexington Law is a huge rip-off scam. They tell you that they will fix your credit, they make very big promises to get you to sign their contract. You pay the monthly payments and getting nothing in return. I used them for over a year and 8 months and my credit scores actually went down. We had a very sick child and had a lot of medical collections and because they inquired about those to try and dispute them it basically quote refreshed the debt thus making our scores lower. We were young and dumb back then. I recommend yatesnovakovic @ g m a i l . c  o m. He is a genius, get through with him today and you will be glad you did. He saved us from Financial ruins and bankruptcy...He deleted all the hard inquiries, BK on our credit report and then proceeded to improving our credit score to the early 800's 

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The Last Resort

Helpful to 2 out of 2 people

It all depends on what your credit history was in the past.

I've always had good credit, and never missed a payment, but circumstances forced me out of all other options. Rating dropped to ~750 due to poor debt : income ratio.

Filed last Christmas, finalized in May, and this Christmas I have 2 Capitol One cards (I recommednd) and 714-740 credit scores.

It can be done,.

5 Contributions
9 People Helped

My Story with Ch. 7

Helpful to 2 out of 2 people

My wife and I filed for Ch. 7 about 5 years ago. I was the only one working, we had 2 kids of our own, plus taking care of her Teenage sister. My wife had some medical bills that we couldn't cover and they went to collections. Eventually we were sued, and my bank account was garnished of everything, right after pay day. Well, m wife's sister had just filed BK, and she was able to get all of our money paid to collections for the past 6 months or so. I thought that was the only way our of our situation. Mind you, we were late on some credit cards, but for the most part, things were under control. We only had about 7k in credit card debt. The garnisment hurt us bad, and I was scared they would garnish my wages next. So we filed for BK and included all of our debt, cars, etc. 

Every since, we have been keeping our credit perfect. Today we sit at 700+ scores, 0 Credit Card debt, but do have two high interest loans. Both at 15K, and paying over 30% interst. For the life of me, I can't refinance these loans to lower interset rates, and all the Banks that deny us, say its because of our BK 5 years ago, plus all the chareg offs that went with it. 

We currently can't get a mortage, even though I make a 6 figure income and have a credit score of 720. It is because the high interest loans mess up my DTI. 

I think it depends on your situation and what your short term, long term goals are. If there is a way to cliimb out of your situation without a BK, then do it. Repariing a credit report with late payments, collections, maxed out credit cards is a lot easier and quicker than recovering from a BK. However, don't let anyone fool you. There is life after BK, and it is not the end of your financial goals or dreams. When it comes to credit and credit scores. . . Time and good habits heal all wounds. 

Reply by
Bettyfl

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0 People Helped

If you find banks that do it the okd fashioned as said by Dave Ramsey you should be able to get better interest rate loans. These type of banks do not use credit scores. They use what is happening now. If you meet their percentage for debt and assets you could potentially get a loan at a lower rate. If you make 6 figures and are paying them your bills and high rate loans now you should be a good candidate for a new loan. All learned from Dave Ramse a financial guru.

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17526 Contributions
5174 People Helped

Helpful to 10 out of 22 people

NO WAY!!!  Unless you consider having your credit 'trashed' for ten years to be beneficial.  Have you taken the time to read any of the information here??  It will help you far more than you realize, and you have had more than enough time to do that.  That is what I started doing when I first joined, and I was on a fixed income with a low credit score then. Still on a fixed income but have a very- good score because of what I learned here.

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38 Contributions
37 People Helped

Fix it here

Helpful to 1 out of 9 people

I’d like to share my story too. Just a few weeks ago i was homeless, i was jilted by my online lover. and he had robbed me of everything i had. By the time i realized i was being played, my credit score was already 458 , i had an eviction on my report and a large debt on my credit. I was on my way to the little corner behind the store where i normally sleep when i saw a fellow homeless person who i met some days ago and he was looking so changed and successful. I immediately began to beg him to tell me how he made it so fast and because i had told him my story when we previously met, he understood my problem and gave me the contact of the hacker that helped him. i contacted the programmer (ex FICO and Experian agent) and he fixed my credit, raised my credit score and cleared all negative listings on my credit in less than 9 days. I would have kept quiet about this, but i won't be able to forgive myself for not helping people who are in terrible conditions like i was. "gmorrison741 @ g m a i l . c o m" is the programmer's email address. I wish you good-luck. Y’all can thank me later. 

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38 Contributions
37 People Helped

Helpful to 0 out of 8 people

I’d like to share my story too. Just a few weeks ago i was homeless, i was jilted by my online lover. and he had robbed me of everything i had. By the time i realized i was being played, my credit score was already 458 , i had an eviction on my report and a large debt on my credit. I was on my way to the little corner behind the store where i normally sleep when i saw a fellow homeless person who i met some days ago and he was looking so changed and successful. I immediately began to beg him to tell me how he made it so fast and because i had told him my story when we previously met, he understood my problem and gave me the contact of the hacker that helped him. i contacted the programmer (ex FICO and Experian agent) and he fixed my credit, raised my credit score and cleared all negative listings on my credit in less than 9 days. I would have kept quiet about this, but i won't be able to forgive myself for not helping people who are in terrible conditions like i was. "gmorrison741 @ g m a i l . c o m" is the programmer's email address. I wish you good-luck. Y’all can thank me later. 

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Reply by
Harry7900

984 Contributions
175 People Helped
Helpful to 6 out of 6 people

Chapter 7 is better for your credit than wallowing in debt you can’t pay back, while racking up 30/60/90 day lates month after month after month on your credit report. 

Debt consolidation is a rip-off. These plans are way more expensive than Chaptet 7, your creditors are NOT required to agree to any of it and can call the debt at ANY time, they can still sue you AND if your creditors do agree to a settlement, the amount they settle becomes taxable income for you.

Bankruptcy has NONE of that. Once you receive your discharge you’re done. No calls, no lawsuits, no taxable income on discharged debts.

File a bankruptcy case. The sooner the better.

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