Credit Guru
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Personal Bankruptcy can be filed 2 ways:
Chapter 7, commonly called "fresh start" since all your debts will be cancelled when your case is discharged, which takes between 3-4 mos after filing.
Chapter 13 which is a 3 year payback plan that is monitored by the court. Many times it is difficult for people to pay off all their debts in 3 years so people sometimes then are allowed to file chapter 7 after that. That means it is difficult to obtain any credit during the 3 years.
The new bankruptcy laws that President Bush signed into law was lobbied (pushed) hard by the credit card companies to pass because it was in their best interest to keep Americans in debt.
Think long and hard about filing Bankruptcy. Consult with a competent Bankruptcy Attorney before filing. What the new law means is that you will have to meet an income test relative to your state's average income. Also you may have to attend credit counseling.
If you file Chapter 7 Bankruptcy your debts will be "discharged" and you will be able to get credit again, but you will have to have a different strategy than most people.
Good Luck |
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sajo
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it is still you responsibility to pay your debt but instead of 20 different payments to 20 different places you pretty much have 1 bigger payment to one place and they at that place distribute the money among the 20 diff. places |
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herbie36f
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Go to this website www.debtwipeout.com |
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♫quirkycoquette♫
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i almost file and changed my mind. it ruins your credit rating and affects you when you look for jobs. companies sort of frown upon people who file for banruptcy. make sure you have search every option before you file consult a nonprofit credit counseling program to see if you cna make payments and get your debt negotiated. okay! good luck ... |
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mysticmoonprincess01
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People who talked down about people who file bankruptcy are a bunch of idiots. They don't know the reason's people file so they should keep their negative remarks to themselves. I had to file bankruptcy in 2002. I had excellent credit, never been late on any payments and a responsible person. I became very ill and had to have a huge major surgery and I was out of work for a long time. I had huge problems with my employer who wanted to fire me and I had to take them to court and use alot of my savings to pay for everything including my bills. I finally ran out of money and had NO CHOICE but to file for bankruptcy. 2 years later I finally won my court battle and I was able to retire from my job with benefits and I have a retirement check coming in but I have a bankruptcy on my record. I reestablished my credit and I have a credit card, credit at a furniture store, and another at a loan company. Didn't need those but wanted to reestablish my credit. I don't know your situation, but I would first go to a credit counseling service. They will tell you if they can help you. If they can't, they will suggest bankruptcy. It is true that Bush changed the rules on bankruptcy. Weigh your options first unless you have no choice but to file. It will stay on your credit report for 10 years and then you can have it removed. Remember that if you reestablish your credit, you will have to pay it off. No more filing bankruptcy until the 10 years are up. Good luck. |
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Jumper
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It helps you improve your financial situation. Yes it stays on your credit report for 7 or 10 years, but you can rebuild your credit during that time and still get credit cards and buy a house and purchase a car and get a bank loan. And you can do this in the first year or two after you file.
It's not all doom and gloom like some people are making it out to be. |
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reality
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You can't get ANY credit (unless it's from a crooked car dealer) for 7 years. |
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beth_jj_love
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well, it'll be hard for you to get loans for cars, houses, whatever. It usually takes up to 10 years to get that off your credit. Talk to your credit agency. It may be different in your area. Its a hard thing to do, but sometimes, it has to be done. Good luck. |
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Eye of Sauron
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The bankruptcy laws have recently changed, they no longer protect the consumer but the creditors now.
If you file, you will be forced to go to credit counseling first. That involves you giving up part of your wage to pay off small payments to creditors. All other credit is cancelled except maybe a car and house payment.
If there is no way to pay them back the credit counseling can release you for bankruptcy. However this will be very hard to do now. Even if you get to that point, your debts can still actually be there.
Currently creditors are suing like crazy with this new bankruptcy law. They are coralling debtors into bankruptcy where they know you will pay them one way or another. |
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GS
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your house,your belonging,your food gets sold by the government. pretty much you become a very very poor,homeless person. |
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Unknown
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A bad credit score |
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Tango55
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Which type you filed. Chapter 7 or Chapter 13? |
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jvancourt
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It's important to weigh all your options before declaring bankruptcy. Here's a helpful article from the Federal Trade Commission: http://www.ftc.gov/bcp/conline/pubs/alerts/bankrupt.htm
Good luck. |
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MissR
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At least in MN - before new regulations went into affect...
I can't remember if it is 7 or 13, but one means that you are excused from your debt and one means that you pay it back but a lot of the interest or high monthly payments are reconfigured to work around your budget.
Considering you get your debts excused...it does not excuse debts for assets you have without returning those assets...i.e. a car. If you still owe on your car - either give the car back or you have to sign an agreement saying, yes I filed bankruptcy but I want to reinstate my agreement for the car or the house. You'd still have to make payments on those then. As for credit cards...it stops harrassing phone calls, emails or snail mail. It does go as a bad mark on your credit for seven years, but if you are already in debt up to your eyeballs and can't make the minimum monthly payments and say your credit cards (even Sears or JCPenney) already report the the bureaus that you don't pay, it actually looks better like you are trying to get yourself out of the situation instead of saying screw them, I'm not GOING to pay. Bankruptcy says I legally CAN'T afford to pay. |
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answerman288
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Your credit goes in the toilet for 10 years. If you file chapter 11 you have to pay some money back. chapter 7 is complete discharge. rules for that were recently made tougher by our great and fearless leader Geoge w Bush. If you have any assets you may be required to sell them to put toward the debt. I filed in 97. July of next year is when its due to come off my record. |
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djay
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freedom............ |
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Man.With.A.Plan
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I guess it proves you are a loser, depending on others to pay your way. It is akin to welfare, which is a synonym for lazy and useless. |
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milwaukeeRN
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What happens you ask? Well you make everyone else pay YOUR DEBT, the credit card co's they increase fee's and APR's across the board, slowly, they don't care from who they just want their money. So I suggest stop spending money like a damn fool, pay off your own debt, get a job, and stop being a mooch. |
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Tater Salad
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Certainly not what USED to happen. In the good old days you'd get a clean slate, bad credit for 10 years "officially" but could always apply for and still get credit cards. NOW (thanks George W Bush!) you have to pay it back in small increments. |
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real4life4eva05
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i dont know but you look like a bogus micheal jackson |
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semisnugzz
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you won't get anymore credit cars, you'll never be approved for anything else in your life. unless of course you can pay the whole thing off; then you'll have to start all over. |
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Doug
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your credit becomes infinitely more jacked. |
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kenogirlmd
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I filed and NO I am not BROKE and its been the bets thing for me to be able to start all over again ..I have bought a car and new furniture since and its been great ! |
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Laura
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You are screwed. Your credit becomes bad. You should talk to an attorney to see what your choices are when you file for bankruptcy. |
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drvshaftdrew
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first you cant get any credit 4 7 years so u just screw up ur live unless ur over 100thou in dept dont |
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tony g
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if you are not filing on more then 50 k it's not worth it
believe it or not you have a better chance to get credit with bad score then a better score with a bankruptcy. |
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elvisfan
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win the lottery |
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alaska
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you pass your problem on to some one else..
the other parties you owe are left holding the bag.
and in turn charge other people to pay for your debt, .............. hence others pay for your miss mangement of your money.
so please get money management couseling...... |
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reichman2007
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Usually a clean slate
Been there done that...but in a different country. I was out of bankruptcy after 2 years. Laws vary. I can get credit and can OPEN bank accounts.
Half these wankers have no idea what they are talking about.
New laws in US state if you earn a certain amount of income above a certain rate, you must pay some of it back. If you don't earn that much, smile and give the hounds the finger and then stay away from credit if you can.
******* Devils Spawn It Is. |
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ashley
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Well, my mom did and she can't buy a house or a car for like 7 yrs and it makes your credit reallly bad! |
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tyggerspaws
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anyone that says you can't have a bank account, a house, or credit the in future, or a car..or any of that crap..HAVE NO IDEA WHAT THEY ARE TALKING ABOUT! You CAN get all of that and more...actually your credit gets better..companys are begging to give credit, houses, cars..etc.
To These other people..if your going to say something at least try to act like you know what your talking about because in this case YOU DON'T |
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