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what if I file bankrupsy
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No Shame

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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. 

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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.

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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.

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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

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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?

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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

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