Posted on
November 19, 2009
at
12:48 am
I am in a tough fnancial bind right now and am considerng bankruptcy as my alternative to take care of all my debt..... I am just concerned with what will happen to my credit after I file. What happens to credit score after bankruptcy?
Posted on
November 19, 2009
at
1:32 am
What happens to credit score after bankruptcy?You can expect your credit score to take a drastic nosedive after you've filed for bankruptcy. Then again, it's a given, because your accounts have already been behind on payment--which is why you're filing in the first place.
Posted on
November 19, 2009
at
1:48 am
That's true, Lallypop, and it may remain the same even if your debts have already been cleared as a result of the successful filing. Your balances will go back to $0, because you'll essentially be starting over. However, you may have a problem with the debts that aren't included in the bankruptcy discharge. As long as they're left unpaid, your credit may still continue to plummet.Hope that addresses your question on
what happens to credit score after bankruptcy?
Posted on
November 19, 2009
at
2:12 am
The good news is, you can be able to improve your credit score after filing for bankruptcy. One of the ways to do that is by acquiring a secured credit card. A certain amount of money is up for security, instead of a piece of property such as your car or your home. Secured cards are much easier to obtain than unsecured cards, especially after experiencing a drastic financial mishap. Other than that interest rates will not be as high.
Posted on
November 19, 2009
at
2:29 am
But won't I always have a hard time getting credit after bk?
Posted on
November 19, 2009
at
11:16 am
Please don't file bankruptcy! Bankruptcy should be the very last opion you chose while trying to fix your financial situation. Keep in mind it take 10 years for your credit to clear and be rebuilt to the point where you can barrow enough to purchase a Home or Vehical. Even when you are in position to make a large purchase you intrest rates are sky high Making money online Isn't what you think, Find out the truth now:
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Posted on
November 19, 2009
at
2:00 pm
Bankruptcy will stay on your credit report for 10 years while most other issues are only up to 7 years. If you truly are in a financial bind you have probably already missed some payments and your credit is already starting to fall.Good luck.You can check you credit report free at
AnnualCreditReport.com (really free)And learn more about
checking your credit here.
Posted on
June 11, 2010
at
10:03 am
I think it depends. My husband and I filed chapter 7 about 6 years ago. One year we filed, we were able to purchase a home and I was able to get a credit card. My fico was above 800. I thought it would be lower and was surprised to find it quite high.We filed because of medical bills and a couple of credit cards we almost maxed out because our jobs weren't paying. I worked part time (just had a baby) and was desperately looking for a full-time job. Husband was doing contract work and had slit his hand (he was a tiler) and couldn't work for a few months with no pay. We tried credit counseling and they even recommend that we file.A lot of things led to our situation. Our families didn't help and turned their backs on us when we would mention our struggles (my family even kicked husband and I out of their house even though we were paying them rent because one of my sister didn't want us living there for her own selfish reasons knowing we didn't have much money). It was hard to ask for their help when they had their backs to us. We both finished college around the same time and went into the IT industry and were not able to find anything better than entry level at $10 per hour. Husband made more than that tiling. We made the mistake of not saving a portion of his money for tax time. We did save, but not enough. The medical bills were what really caused us to go down fast. If we had an office visit and they billed us $75 and couldn't pay it in full, they would bill us $50 on top. Each month the bills got bigger. Then, it got worse when we ran out of health insurance for our baby. We had to get a private one for the baby and husband which cost about $300 for both for just very basic stuff. Eventually, I found a full time job and husband went into pharmacy school. Time passed and now I am a stay home mom to two kids and husband is a pharmacist. We are naturally not heavy spenders and don't have a lot of nice expensive things. The economy just caught us in a place situation. We did what we knew best.
Posted on
June 14, 2010
at
5:42 am
Unfortunately, a Chapter 13 bankruptcy filing will remain on your credit record for at least seven years, and Chapter 7 bankruptcy filings can stay there for 10 years. Either of these bankruptcy filing can affect both your credit score and how lenders perceive your credit worthiness. Additionally, experts say that officially declaring bankruptcy can lower your credit score more than 200 points. That can be a tough setback to overcome, and you should consider all other possible options.
