Posted on
January 8, 2010
at
3:02 am
How would bankruptcy affect credit? My friends are discouraging me from filing and told me do debt settlement instead - but are settlements good or bad for my credit?
Posted on
January 8, 2010
at
3:11 am
Are settlements bad for credit?When you enroll in a settlement program it means that your accounts are already past due (by around 6 months) - and that already affected your credit badly.But once you've completed the program, your credit score would only improve.
Posted on
January 8, 2010
at
3:51 am
Are settlements bad for credit? Take a look at your credit score breakdown:-35% Payment History --
this segment gets affected by prolonged non-payment (when you're done with the program, it would improve)- 30% Amount Owed --
this segment as well-15% Length of Credit History-10% New Credit-10% Types of Credit Used
Posted on
January 8, 2010
at
3:55 am
How would a settlement reflect on the report? Would a settlement on it really be better than a bankruptcy? And how long would it stay there?
Posted on
January 8, 2010
at
4:11 am
A debt settlement appears on the credit report as "settled", "settled for less than the full balance", or "settled in full." It stays on your report for 7 years but not on your public records.A bankruptcy chapter 13 stays on your report for 7 years as well and 20 YEARS ON YOUR PUBLIC RECORD.
Posted on
January 8, 2010
at
4:18 am
Another relevant question to "Are settlements" - bad for the credit, is:Are settlements taxable?
Posted on
January 8, 2010
at
4:34 am
The answer is yes and the IRS would know it if you did not report the settlement as an income in your returns (you'd be penalized) and that means more debts for you.
Posted on
April 7, 2010
at
7:46 am
Your friends are suggesting you the right way. settlement in, I wont say good for credit for not as bad as bankruptcy. I would give you an other option also Debt Consolidation.
