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Heather Washburn

How long is your credit ruined if you file bankruptcy? Does it ever come off your credit report?

Posted: Sat Jan 14, 2006 10:27 pm Subject:

A discharged Chapter 13 bankruptcy will remain on a person's credit report for 7 years from the date of filing, not the date of discharge, and a Chapter 7 stays for 10 years from the date of filing, not discharge.It is very hard to get credit with a banruptcy on your credit report.It is better to try to pay your bills thru debt consolidation,loan companies will see that you are paying your debt,and when you finish the program,you will see your credit score go up,as your debts are reported as paid in full.There are other topics on this subject on this board,Im sure someone can give you a link to those post,which will give you lots more insight on the downside of filing bankruptcy.
Hope I anwsered you question.

Gary · Posted: Sun Jan 15, 2006 12:01 pm Subject: Bankruptcy versus debt consolidation

Bankruptcy on your credit can give you credit because they know you cant file again for 10 years. So the debt consolidation company that is saying you cant get credit is full of shit. They rip you off with really high payments so Screw them they are all RIP OFF'S beware!!!

Posted: Sun Jan 15, 2006 3:56 pm Subject: life after bankruptcy

heather -- I filed bankruptcy a year ago and just bought a new car the interest rate was higher but if I make my payments on time in 6 months I can refinance. I tried that credit counsiling what a joke It got us sued because one card card company didn't agree to the amount of money the credit council company was paying them and issued a judgement against us, we thought the credit counsiling company would protect us and they didn't. We weren't even informed that this particular credit card company rejected their offer. $10,000.00 we paid to the credit counciling company and they took our money in fees and starting fee of $1500.00 didn't pay our credit card bills on time or even pay the amounts they promised. Needless to say after all that we were still bankrupt.
If your that far in debt just file put an end to it and start to rebuild again other than draging on your bad credit over time and throwing your money out the window they won't save your credit.
It also helped my credit because I left my house out of the bankruptcy and continued to make my payments on time and my credit score really isn't that bad.
Good Luck

Posted: Sun Jan 15, 2006 6:04 pm Subject:

Its easy to get a car after bankruptcy,I filed about 4 years ago and had no problem,except the interest rates are very very high.They can take the car back if you dont pay,so they will give you the loan at high rates.I have been trying to get a home loan,but because of the bankruptcy on my credit report,I keep getting turned down.The mortgage lenders told me,that consolidating my other debts will help,but until the BK leaves my report,I will be paying the highest interest rates out there.They look at bankruptcy as a more negative mark since,it looks like the debtor is trying to not make good on a promise to pay a loan.On the other hand if you consolidate you are paying your debt,and are a better credit risk.Until you pay off you loans,your credit score will still be affected,but in time it will improve.With bankruptcy,you will have to wait 10 years.There are some good and some bad consolidation companies,make sure you check with the BBB and do some research before selecting one.One other thing,the only type of credit cards that I could get,were very low limit and very high interest.I am not trying to sell consolidation to you,but as someone who has been there done that,I would only reccommend bankruptcy as a last resort.

Posted: Mon Jan 16, 2006 10:48 am Subject:

If you are having huge amount of debt, you can choose either bankruptcy or consolidation and improve your credit. But, remember, if you file for bankruptcy, your credit will improve after 10 years from the date of filing. Whereas, if you choose consolidation, your credit will improve from the day you enrolled in this program and the final results will come up when you have completed the plan of your payments. It can be either 6 months, 1 year, 2 years, 5 years depending upon the amount of debt you have put in the program. But ultimately, you will get the positive results before bankruptcy can give it.

There are many other reasons for which bankruptcy should be avoided. Not only you will be paying highest rates of interest to your lenders, but your credit scores will also reduce drastically. Bankruptcy is considered to be a negative remark ruining your chances of new credit. It is upon the lenders wishes whether they want to extend credit to you after filing bankruptcy. After you file for it, they will analyze your payment skills and understand how much you are responsible towards your debt this time. Read this page for a better understanding on why to avoid bankruptcy.

http://www.debtconsolidationcare.com/avoid-bankruptcy.html

Whereas, a consolidation program will show its positive effects depending upon the way you make your repayments. This program is much appreciated by the lenders because it still proves your responsibility of paying the debt unless you file for BK. The rates of interests are comparatively lower in this program and the stay in your CR is also as long as you are enrolled in it.

But remember, always do an extensive research before you give your money to any company. The consumer protection office of each state keeps a list of all business organizations and their activities. Besides, the legitimate companies will register with the Better Business Bureau and show their business done legally.

Posted: Thu Jan 19, 2006 9:38 pm Subject:

I was really really shocked, my step son and daughter in law filed bankruptcy several years ago and they just bought a new car and are moving into their new house. They were instantly approved with no problems, for both. I asked how they did it with their credit and a bankruptcy and they told me it was no longer on their record and their credit is now excellent. Its spotless!

I'm happy for them. But its a kick in the butt to me because I am trying so hard to do the right thing and pay all my bills--charge offs and all. My husband is dead set against bankruptcy, he said we made the bills so we will do the responsible thing and pay the bills. He says its just the right thing to do. So we are struggling trying to clean up everything and get everything paid off. Its hard work but we'll do it. Its just discouraging hearing step son and wife brag about their 'spotless' credit when they filed a bankruptcy, yet here we are trying to do the right thing and its a struggle. But this was our decision right?? Also, people like us are the ones that catch the most hell from creditors and collection agenies, because we are trying to do the right thing. Yet other people that aren't trying, just seem to get away with it.
(TO MAKE MYSELF CLEAR HERE,I AM NOT TALKING ABOUT SOME OF YOU THAT HAVE FILED BANKRUPTCY, so please don't think I'm refering to you, I'm NOT!!) I know people and so do you, that just con their way through life, get stuff on credit (knowing good and well that they're not going to pay for it, they have no intentions of every paying for it) and don't pay for it, then collection agency comes after them, they just ignore CA and eventually they stop trying to get the money and they get away with it. Here I am 'begging' creditors and collection agencies to talk to me and take my money. Rolling Eyes

so anyways, as far as my step son and wife, theres not one bit of evidence on their report that they ever filed bankruptcy and its been a little over seven years now.

Posted: Fri Jan 20, 2006 6:42 am Subject:

I was under the impression that a bankruptcy stayed on your credit report for 10 years, Ours will be on their until 2010. We filed medical bankruptcy do to the huge medical bills from our first daughter totally over $50,000. Like I stated above, ours is on their until November 2010. If I am wrong on the 10 year thing, feel free to correct me.

Posted: Fri Jan 20, 2006 8:52 am Subject:

mom of twins, I wonder if there are different time frames for different states? Because I know for step son and wife, it hasn't been ten years. I also know that his wife used her sisters husband to do it because he is a lawyer. I will have to ask her next time I see her, because as I said in my other post, I was shocked that their credit is spotless after bankruptcy, it doesn't seem like it was that long ago and I know for a fact it hasn't been ten years. Shirley

Posted: Fri Jan 20, 2006 12:54 pm Subject:

I think its federal law that it has to stay on the report for ten years. The post above by twokidtwocat also states the 10 year reporting of chapter 7 bankrutpcy.

Posted: Fri Jan 20, 2006 2:46 pm Subject:

I would like to share my thoughts here.

A correct negative entry can never be removed from your credit report; it will be there according to FCRA guidelines.

However, some credit repairing agency promises to remove bankruptcy from your credit report. They might adopt some specific technique and can ultimately succeed to remove it, but this is never advisable, because-

They charge a lump sum for doing this.
There is no guarantee that bankruptcy will be removed at all.
It can re-appear in your report any time.

Suppose, it is removed from your credit file finally somehow, in reality it is there and you are still responsible for this. So let it go off naturally with due course of time. That was my view.

Posted: Fri Jan 20, 2006 10:12 pm Subject:

Posted: Sat Jan 21, 2006 7:58 am Subject:

When we filed in 2000 it was 7 years but thanks to the government its now 10 years.

Posted: Sun Jan 22, 2006 7:16 am Subject:

I think it different laws for different chapters. I did a chapter 7 after my divorce and it was discharged in Dec 2002. Mine will stay on my report for ten years after the date of filing which was Aug 2002. I think some creditors might let if fall off after seven years. I've been approached by companies stating that for a small monthly fee that they can remove my bankruptcy and other negative marks from my credit report. I think they are called credit repair agencies. I ignore them because like it was stated, it takes time for these things to come off. Believe me, I regret doing the bankruptcy now. I thought it was my only alternative at the time. I've been able to rebuild my credit report up over one hundred points over the last couple of years but it's my hard work and paying bills on time. Believe me, it hasn't been easy after I got wrapped up in the payday loan trap. So, I know it will take time but I'm finally on the right road to recovery. Very Happy

Posted: Mon Jan 23, 2006 9:21 am Subject:

msmishele30, if you don't know. No credit repair agency can remove the accurate negative information from your file if they claim to do so. Only the federal authorities have the legal powers to remove it only if there is any inaccuracy in your file. The credit repair agency will make money from you because of your lack of adequate knowledge.

Chapter 13 bankruptcies have the provision to stay in the CR for 7 years. But there are certain requirements before you can qualify for chapter 13 bankruptcies. Chapter 7 will stay for 10 years.

Posted: Fri Feb 03, 2006 10:45 am Subject:

A correct negative credit entry can be removed from your credit file. Just because you did it, does not mean it can't be removed. The reason being is because you can dispute your debt three ways. The way that gets you the best response in my exprience is inaccurate.

The credit bureau has 30 days to do an investigation, which consists of sending out a debt validation letter to your creditor. The creditor then has to return it to the reporting agency. If this isn't done within a 30 day period, by law it has to be removed from your credit report.

I can speak about this because I have filed and recovered from bankruptcy in less than a year. I have had 70% of all of the negative items deleted off of my credit reports. All three! So it is possible.

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