Will filing bankruptcy ruin my credit for life or just 10 years?
Ok so here is the situation I want to leave my husband and the only reason I am still here is due to finances. If I leave and I file bankruptcy will that basically be with me for the rest of my life? I am 32 so if it is on my credit for 10 years that would put me at around age 42 before I can establish myself again. Any suggestions would be more than greatly appreciated!
Posted January 26th, 2010 in File Bankruptcy Yourself. Tagged: 10 years, bankruptcy, rest of my life.
You can check all the pros and cons of filling bankruptcy here.
http://bankruptcy-info.we.bs/
Best of Luck..
January 26th, 2010 at 2:12 pmAfter ten years, your bankruptcy will pretty much be old news. However, a permanent public record will be kept. It could hurt your chances of first time homeowner’s loans, etc. After ten years, you will be able to once again have a decent credit score.
January 26th, 2010 at 2:12 pmBankruptcy will stay on your credit for 10 years, but you can re-establish once you are discharged. You will have to pay higher rates though. One thing I always suggest is to try to get a "secured" Visa/Mastercard. This is where you actually deposit money into the bank issuing the card & they "hold" it (normally in a savings account) to use if you don’t make the payments on time. This keeps them safe & allows you to re-build your credit. Just make sure that you don’t add any negative credit, collections etc. to your credit AFTER you file. We (at least in the mortgage business) look at a bankruptcy as sometimes necessary- however, we expect you to learn from your mistakes & NOT make them again. Any hits on your credit at all, after BK will ruin your chances of getting credit. Good luck!
January 26th, 2010 at 2:12 pmYou can start reestablishing your credit right away get a credit card in your name it will have a very small limit & pay it faithfully by the time the Bankruptcy is off your credit report you will have good credit
January 26th, 2010 at 2:12 pmIt will mess up your credit for 10 years. Also, you don’t describe well why you are in the mess you are in. Not sure if bankruptcy in your case is a temporary fix or a permanent one. If you don’t keep your record pretty spotless after the bankruptcy expect your record to be bad well past 10 years.
January 26th, 2010 at 2:12 pmI was able to get a high interest rate car loan 2 yrs after the BK, and buy my first house 5 yrs after a chapter 7 bankruptcy and two more houses and some land since then – it’s still not even 9 yrs since the discharge
bankruptcy DOES cost money though ($2-3000) and if most of the debt is credit card or loan related, you may have to do a chap 13 BK, which will require partial payment of those debts (amount determined by court) over 3-5 yrs – the BK rules changed in 2006
January 26th, 2010 at 2:12 pmDo what you think is right for you. I just got my chapter 7 discharged 2 months ago. My credit scores before my health issues in the middle of 2007 was between 739/748. Since then i had 6 accounts go default and one judgment along with bankruptcy this year. My credit scores today is between 610/644 with what i went through i was surprised my scores was as high as they are. I’ve started rebuilding my credit and i hope to have my scores where they was in 2007 by the end of next year.
January 26th, 2010 at 2:12 pmChapter 7 bankruptcy can erase your unsecured debt like credit cards and loans. Only thing about chapter 7 bankruptcy is you have to qualify for it. They will put you through a means test to see if you would Quality and yes it will be on your credit report for 10 yrs.
If you don’t qualify for 7 it takes you in to 13 there you will have to pay back a percentage of your debt over a 4 to 5 year period and a 13 stays on your credit report for 7 years.
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – creditreport.imess.net
January 26th, 2010 at 2:12 pmIn reality you can begin reestablishing your credit as soon as your bankruptcy case is discharged. this means you could potentially raise your credit score while the bankruptcy shows on your credit report.
Creditors will offer you credit after your bankruptcy. You’d actually be surprised at how eagerly they’re will to do so. They know you’re debt free and will jump to offer you credit – albeit at a high interest rate. If you use this to your advantage you can make small purchases to rebuild your score faster.
In short, though, you won’t lose 10 years of your life just because you file for bankruptcy. You’ll be required to go through some extra credit counseling (required by law) which may help and your bankruptcy attorney will also be able to help you find ways to rebuild your credit after filing
January 26th, 2010 at 2:12 pmDon’t file bankruptcy! Either way if you let everything go & don’t pay it OR if you file for bankruptcy, They will both stay on your credit report for 7-10yrs. Let a credit repair company help you! I use
January 26th, 2010 at 2:12 pmhttp://www.ecreditattorney-marketing.com/idevaffiliate/idevaffiliate.php?id=5030
and they have help raise my score about 110 points since June 2009.Very cheap ($29 per month) & no contract! Hope this helps!