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Sunny32296

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what if I file bankrupsy
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No Shame

Helpful to 362 out of 367 people

The most important thing is to absolve yourself from any shame. Sometimes good, honest, people make mistakes and need a fresh start. Forget the past and focus on rebuilding your credit.

If a BK is your only option, strongly consider a chapter 13 if you can afford a partial repayment plan. Chapter 13 stays on your credit report for 7 years after filing, while a chapter 7 can stay on for up to 10 years. Most chapter 13 repayment plans are 3-5 years in length, and in most cases you only pay what you can afford (as determined by your lawyer and the court).  A court appointed trustee will distribute your payments to your creditors, and the creditors are not allowed to contact you once you file.

While it will be tempting to take a longer repayment plan to lower your monthly payment, take as short of a repayment plan as possible. There is a big myth about bankruptcy that you'll never get credit again. The truth is creditors will start considering you as soon as your BK is discharged (which occurs as soon as your payment plan is fulfilled). Many sub prime lenders specifically target people with recenty discharged BKs since you don't any other debts.

Once your BK is discharged, you may need to get a secured credit card to re-establish credit. Whether secured or not, charge a small amount each month and pay your balance in full. This will establish a good recent payment history which weighs heavily on your credit report. After about a year, you should start qualifying for credit cards or financing with reasonable interest rates. Many people who file need to take financing (for a car, etc) with very high intereste rates after their BK is discharged, and then later refinance their establish a good payment history.

Many people get into trouble with credit cards, and are reluctant to obtain them again after filing BK. This is a mistake, the only way to truly recover from bankrupcy is to re-establish your credit and make payments on time. 

Bankruptcy is daunting, and should be a last resort. But, if its your only option look at bankruptcy as a fresh start and a chance to learn from prior mistakes. Don't listen to people who don't understand what bankrupcy is, nothing is forever and you will get credit again if you are responsible in the future. Hang in there. 

Reply by
ziggyheidi

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Helpful to 15 out of 16 people

This is wonderful help to me.  I currently stand at 554 and it is mostly medical debt that I was unable to pay because I am unable to work.  I finally received my SSDI benefits in 2012 and am very happy to have found this site about a year ago.

Thank you for being so helpful.

Reply by
antiquelady600

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Helpful to 1 out of 1 people

i recently just went through divorce,me and my husband owned seceral rental properties between us. i just walked away and signed quit claimes on all properties,but the main house is still showing up on my credit,how will a bankruptcy affect tht since he still owns it and paying note on it,can i leave it off?

Reply by
DoOvers2

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I need to file bankruptcy. I don't see any way around that, but my personal income is Social Security Disability amounting to $777.00. Is it possible to file Chapter 13 bankruptcy and make one low payment out of my income? Of course, I have my other necessities, electric, phone w/internet, car payment, car insurance, Dish network, Walmart card, Care Credit card, and some small things. I get a little in food stamps, a Safelink phone (Provided by Social Services). Medicare and Medicaid, but my Medicaid won't help me with dental implants. I running into a lot of suffering with my teeth. Please, can you help me??

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Credit Dilema

Helpful to 105 out of 106 people

Hello everyone!

I filed BK 2 years ago and it was not fun of course but the worst thing that happen to me it was a company garnishing my wages. I had no choice but file plus I had so many credit cards past due plus other accounts, it was a mess. After I filed, I waited a few months and tried to get a secured credit card with Capital One. It was approved for a small balance but it was a good start. It has been more than a year now that I have that account and never was late, always on time and paid more than minimum of course. I gt more offers with low balance and I agreed. My credit went up right away because I pay every statement on time, never missed a payment, not exceed the limit, not used all the credit balance. It went up! The BK doesnt look that good but once they see that you are responsible now, it would go back to normal and things can be always work out, call your credit card company over the time and they can manage to lower your interest rate. Now I have 5 credit card which I use time to time and keep everything on track.

Reply by
sheilaw1

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Helpful to 3 out of 10 people

I WANT TO GET OUT OF DEDIT

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31 People Helped

Helpful to 31 out of 31 people

We filed last year. 

My husband's job transfered him over 7 years ago and we could not sell our home; had to forclose, but not before tapping out every resource within a few months to pay the mortgage while trying to rent in the new town. At any rate, with no end in site, and garnishments waiting in line to take whatever they could from his pay, we broke down and filed. Thankfully the house didn't need to be included in the BK since we lost that years ago.

Within 3 months however; the new credit card offers started coming in. I waited for the right one - ~no annual fee~ - APR was going to have to be sucked up. But I took the offer. My little 1,000 limit went to 4,000 in 6 months and I had a "C" credit rating from my bank (whatever that meant). My husband refused to get a card, so instead I talked him into getting a loan from our credit union - we gave them the title to our car, and took out a small loan. we had the loan amount put into our savings account and set up auto payments to be pulled from the savings account to pay the loan every month. - As it stands now, my score is up to 659 in here. My husband was a late starter in building his credit through the bank, but it's moving up too- and it's only been 3 months since he "joined in on the credit score game".

**Additionally, with the bank loan - using the car title, it's looked at as an auto loan. We had to get full coverege on the car as a result, but now our car insurance score has gone way up too.  - Naturally - they're getting more money from us, so of course we look good to them :)

So, there you go. Your score will build quickly after bankruptcy, provided you give in, and create some ~new credit~ and keep it in good standing.

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Filing Bankruptcy

Helpful to 3 out of 3 people

I have a rather daunting problem.  Up until a year ago, my credit was great, I never missed a house payment or was late on credit cards.  I had been a caregiver for my father who passed away after after 10 years, a month later my son had 3 major surgeries and a month later I had to travel to another state to prepare funeral arrangements for a relative.  Prior to this time my father and I had shared expenses and with  my sons surgeries and his recuperation which took months, my finances are depleted.  I am a senior citizen facing bankruptcy, my problem is I don't have the monies to file. I have spoken with 2 attorneys and they both indicated I might have to sell my home.  I do not want to do this and have worked with my mortgage company to prevent this, I even tried to work out a payment plan with some of my creditors with help from friends and relatives but that income has dried up.  I have worked hard all m y life to have a home and kept up my payments to creditors and to find myself at this time in my life in such a financial mess is very hard for me.  I have talked with a credit counselor but without the income they can't help, I am on fixed income what can I do?

Reply by
Dorible

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Helpful to 5 out of 5 people

Check with a couple paralegals in your area that do bankruptcy.  They are cheaper than the attorneys.  There is also a form you can fill out to waive your bankruptcy fee depending on your situation.  If they don't waive the fee, you can be put on a payment plan.  Good luck

Reply by
hblioness

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Try social media.Gofundme.com will let you set up for free.If you are honest and tell your story well,people may respond.What have you got to lose?

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12 People Helped

Fair Credit

Helpful to 2 out of 2 people

I always had excellent credit..3 years ago I was laid off and later treated for an illness which kept me out of work for 2 plus years. I got divorced and had to start my life over with a job making 50% of what I used to make. Subsequently I have accumulated a large amount of debt through 2 personal loans (15K) and credit cards (14K). On top of child support and rent I have a mortgage (250K) still in my name (but my ex-wife pays the mortgage) My current score is about 652 and I think mostly due to maxing out my credit card limits. I often pay the minimum payments because otherwise I wont have enough to live on for food, gas, etc. I recently received a car loan also for a lease.

What is the best way to re-build my credit at this point beside the obvious of paying my balances down? Should I consider Chapter 7?

Input from anyone would be helpful.

Thanks

Reply by
7freshstart7

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11 People Helped
Helpful to 6 out of 6 people

These things drop off after seven (7) years from the last time a payment was made on the account. Since you have been making minimum payments then your seven (7) years will start pretty much right now. So I would suggest filing a bankruptcy which will also be 7 years on your report but it will get rid of all the balance and your score will go up.

Reply by
kimmie332

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Helpful to 2 out of 3 people

CHAPTER 13 WOULD BE BEST BECAUSE YOU STILL WILL PAY YOUR CREDITORS WITH LOW PAYMENTS AND WHEN YOU GET OUT BR IT WANT BE HARD FOR YOU TO START REBULIDING YOUR CREDIT AND YOUR CREDITORS STILL GET PAID AND YOU STILL GET TO KEEP WHAT YOU PUT IN YOUR BR IF YOU FILE CHAPTER7 YOUR CREDITORS DONT GET PAID AND IT WILL BE HARD TO GET CREDIT WHEN YOU GET OUT OF BR BECAUSE THEY WILL BE SCARED TO TRUST YOU AND IF YOU PUT THINGS IN YOUR BR THEY STILL CAN GET IT HOPE THIS WAS A HELP

Reply by
aryanna30

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1 Person Helped
Helpful to 1 out of 4 people

No see if u can get a second job. Work on pay off the lowest credit card first. After u are done with the lowest apply that amount u was paying on top the next bill u want to pay then work ur work. Filing for chapter 7 isn't the way to go

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4 People Helped

Bankruptcy decision

Helpful to 4 out of 7 people

My name is Michelle and I Have a Srong Decision to Make. I was Diagnosed with a Disease back in 2002 and didn't have Medical Coverage. Over 6-7 years I accumulated some Hefty Medicals Bills and Weren't able to pay them due to Not being able to work. However, I was in going to school for Nursing and Now have School Loans that Are on My Credit as Well. I have heard that Many Companies DON'T consider Medical Bills or School Loans in order for you to get Credit Cards, or For your Credit Score to be Effected. I DON'T Have any Other things on My Credit but these to, and as I Stated before, The are a Hefty amount....Maybe between $35,000-40,000. Should I Consider filing Bankruptcy because I have noticed that my spCredit Score is Low and When I apply for Credit, I get turn down! PLEASE HELP!

Reply by
zachary1234

9 Contributions
1572 People Helped
Helpful to 38 out of 38 people

If your score is low absolutely file chapter 7. Keep in mind the student loans will have to be payed. Everything thing else credit cards and medical debt will be eliminated in bankrupcy. When you get done I promise your score will be 150 points higher and Im probly holding back on that figure. Most people tell you not to do it because they say its bad. I say do it best way to fix a low score and make your debt to income ratio go down. Its even likely after your case closes you will be able to get at least an auto loan. When all those credit cards and medical debt and collections fall off because of bankrupcy. The FICO score system thinks you paid it so in other words its tricked and as a result your score soars up 50 to 100 points at a time. Hands down best way to fix a low credit score. If your even able to pay those bills off it will take years  for your score to go up. Bankrupcy is rapid and should help you.

Reply by
flyhyon

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Helpful to 4 out of 5 people

It would definitely be worth an initial consultation with a bankruptcy attorney to see if that is the best option for you.  REMEMBER, though, that student loans generally CANNOT be eliminated by bankruptcy.  ALSO---are you still experiencing medical problems such that you still have expenses mounting up?  Most medical bills can be discharged, but remember that once you file a Chapter 7 bankruptcy you cannot file again for another 10 years.  If you have ongoing medical expenses that will continue on after you file, then filing for bankruptcy may not help you much.  

Reply by
7freshstart7

3 Contributions
11 People Helped

Based just on the information you have provided; I would say yes but then again how long has it been since these were added to your report? Also, how much was your student loan; you would have to pay that amount regardless.

So if your last medical amount reported was several years ago and you only have a couple of years to go before it gets removed from your report then why bother?!? The bankruptcy will be there for 7 to 10 years if you file now.

Reply by
Tkepz185

2 Contributions
362 People Helped
Helpful to 0 out of 1 people

With very rare exception student loans can not be discharged in BK. Best thing you can do is pay them on time, the payments go towards your credit history but many banks will not hold student debt against you. 

Any missed payments should be removed from your credit repot after 7 years, so hang in there and keep establishing good recent history. 

1 Contribution
1 Person Helped

bankruptcy

Helpful to 1 out of 2 people

i have student loans total of 10,000 and 2 write offs on my credit report. How can I rebuild my credit without going bk and how long do write offs show on your credit report? How long does the write offs stay on the credit reports?+

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1 Person Helped

Is bankruptcy right for me?

I have about 10k+ in medical bills and a repo on my credit right now.I am a divorced father of four doing the best I can and My credit right now stands at a 509.The medical bills and the payment on the repayment from my gf and my self is killing me.I went to a local furniture store who does in house financing and bought something small and have made the payments on time.I really need some relief from these medical bills and the repo.I have judgements from the medical bills against me showing up on my credit which is killing my credit score.Is filing bankruptcy the best psooible option for me.I haven't been able to make the payments on my medical bills due to being in and out of the hospital due to illness and diovorce.With child support everything I make goes to keep me afloat.Any suggestions?

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8 People Helped

I am 5 months away from being 3 years in my bankruptcy.  My credit score is 568.  Should I get a capital one credit card while still in bankruptcy to improve my scores

1 Contribution
0 People Helped

Should I file bankruptcy?

My current score is 550. Im trying to build credit to buy my first home. Should I file or should i keep trying to rebuild my score?

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