I have a question, I want to buy a house in the next couple of years, but here is my problem, I have 35,000+ in charged off debt from 1997, and I currently owe like 20,000 more in current credit cards, due to many financial mistakes, I screwed up royally, I am late, and past due on everything, and my credit IS HORRIBLE, recently I was told my score was 400 something, that really sucks. I have an account with providian w/ a 6000 limit, but am past due 90 days, as well as everything else, NO-one in their right mind would approve me for a mortgage in 3 years, I am 25, and concerned. Should I file bankruptcy, and if I do, will that affect my chances of getting a mortgage, or will it help? What about providian, I'd like to re-affirm their debt, and keep the card, b/c they always were good to me, what are the chances of that? Also, I currently pay 450 a month in child support, I have no problem with that, but that is the main reason that I am so behind in all my bills, I only make 12 dollars an hour, but I pay so much. Should I just file on everything, and start over with a secured card? Please any and all suggestions will be appreciated!
Thought my credit was ruin and beyond hope,but my chances are better than yours ,as far as ,getting a mortgage in three years.I don't feel so bad now.WELCOME TO CREDITNET MESSAGE BOARD!!!!!!!!!! If you stick with this board,I GARUNTEE that you could be directed back to recovery soon if you start right now. First I would forget about the past"('97) and get current with the debts debts you got now. If you're only 90days+ w/ Providian, I would bust azz to get some kind of arrangements going with them(get it in writing).The other $14,000 I can't really tell you because I don't know the circumstances.You have to give more info there. Child support you can't get out of.... just don't have anymore til you are finanically stable and can afford to support another one.You still have time on your side ifit hasn't been over90 days on other obligations. You are really going to have to make up your mind that you want to do this. Filing BK would be the last thing I would do. RE-assess your income brought in and get a budget program going here.You're only 25 and got time on your side and it might take 5 years instead of 3 years to pull it off,but you can with discipline. Make this message board a partof your daily routine(life) and you will see where I'm coming from.Save youself the stigma of BK and the money you would have to pay an attorney to file it and put that money on your debts.This message board can become you debt consolidator and advisor with your questions and answers. You have alot to learn and you can get an excellant education right here.No,I don't have any business dealings wth this board,just patronize it and it has done wonders for me in the last 2 months. My finances have taken a 90 degree change for the better.By the way,WElCOME and keep board inform of any changes.There is nothing to lose here.
If you can file a chapter 7 and wipe everything away...do it! FHA starts counting from the date of closure of your Bankruptcy. And you should be good to go in 3 years for a mortgage. If you have any department store credit cards and you live in a state like PA., you'll be forced to file chapter 13. Forget it! This is nothing more than a money maker for the lawyers and trustees and don't think at any point you,re doing the right thing by paying back your creditors under this plan...most of the money goes to the lawyers, etc.. and you will be stuck in an ACTIVE bankruptcy for 3 years, meaning it will not even be considered closed until that time is up.
There are other alternatives than BK.Either way 7 or 13!!!!! BK laws are are too difficult to comprehend at the time of filing because the person had been so stress for so long that they don't absord the reprocussions of it,until months later when it's too late and then find that it really wasn't necessary. I have never known anyone to get a FHA after 3 years of filing,but that doen't mean that it isn't true. I, personally feel as thuogh you still have a chance to work a payment plan with your creditiors, at 90 days, I don't think it's to late.But opinions are like a#@holes,everybodys got one.So,this is mine. You're yong enough still,you can get second jod and weekend third job. Depends on how serious you are!!!!
River, The guy only makes 12 bucks an hour and is over 20G in debt! He could make payment arrangements till the sun shines and still have all that activity reported on his CR. None of which will help him get a mortgage! The bankruptcy laws are about to change soon in favor of the creditors, and if he can wipe out his debt now, he will have a better chance at obtaining a mortgage in 3 years from anyone, as opposed to showing still 20G in debt on his credit reports and a flailing attempt at repayment with a schedule that could last for many many years. Creditors love to show your weaknesses by posting on your CR that you are in a "special" repayment plan because you can't pay your bills. This is as bad as a Bankruptcy!!!!!
Thanks roni, Point is: Anyone who has gone to settlement on a house (which is Concerned's main goal) should know that all outstanding debts have to be settled or you need to write a check at settlement to the creditor. In this case; a bankruptcy is probably best. The slate will be clear when Concerned is ready to buy a home, assuming he doesn't continue his reckless ways financially!
reckless to say the least.Anyone making only $12/hour must not live the high life. Credit is so tempting, but I think concerned has learned his/her lesson. We must always spend with caution. If anyone is a good candidate for bk, concerned is. roni
Been there,done that. Not a good feeling. Twenty-five is awfully young tohave to go in that direction,but better now than later. I wasn't quite that young and fortunate,because the courts dismissed mine. Still was reported as a full process BK.Never again is what I said.
Maybe these posts will prevent one young person from entering the credit trap that many of has been in.! Were all on the same team!
RE: keeping providian If you choose the BK path...you can't pick and choose which creditors you discharge. By law you have to list all creditors...if you don't Providian will get wind soon enough and close your account.
I have been following this board for some months now and have found it to be informitive. About filing bankruptcy, well for me it work out okay. We were in debt about $35,000 and unable to get cuaght up with our bills, no matter what we did. So 3 years ago we filed a chapter 7 and about 6 months after or bankruptcy was dismissed we applied for bank cards(Orchard Bank, Providain, Capital One). The credit limits were low, about$300.00, but it gave us a new start. A little over 3 years to the day we were able to qualify for 0 down conventional mortgage through Wells Fargo Home Mortgage. The intrest rate is high 10.99 %, but we did get a home. What I did is find a V.A. repo and made my offer and with the help of a good realtor and mortgage loan officer they made it happen. Good luck.
I agree with Roni and Float, with that much debt you should consider it and start fresh and remember to handle your credit wisely this time. good luck to you Mom
RE: keeping providian A person can file chapter 7 every 7 years. A 13 can be file every day if someone wanted to.(that's what I was told by a lawyer) As far as debts go it is true that every creditor has to be listed, however, a debtor could choose to reaffirm certain debts if desired.
Thanks for all the info, I understand that I have to list all creditors in a BK, what about my car payment? I have a loan through Mazda American Credit, for a 2000 Neon, I only missed one payment on that, If I keep paying the car, I can keep it? I think Chapter 7 is the best way to go, I've researched it, I forgot to mention that I have 4 judgements, and they ARE LOOKING for me, and if they attached my wages, I wouldnt be able to support my child, and pay my rent! As far as dept stores go, I don't have any cards for them , what I do have is: First USA 4300 (120+) Citibank 2200 (120+) Providian 6000 (90+) QVC 1000 (120+) Associates VISA 1500 (150+) Littman Jewelers 650 (30+) a few others I cant remember at the present time... I have a 200 cap one, but never used... The judgements are from 1997 in which I broke a lease, and signed it under "legal seal" which in effect negates the SOL in my state for 12 years, they got a Judgement for 7000+ Judgement for Wards 1700+ Judgement for Beneficial 6500+ My expenses are: 300 child support 100 medical ins. 675 rent 343 car payment 100 insurance 150 phone/electric 100 food 150 gasoline thats 1918 a month, and my income is around 2000 a month, I did not include any misc. expenses such as clothing, work supplies, additional things my daughter needs... Would I be approved for a CH7?
I would suggest that you file. You can keep your car as long as you stay current and reaffirm the debt with the lender. You are in way over your head. Bankruptcy is not for all cases, but I think you qualify. On your income with your debts, you"ll never catch up. The good thing about filin bk is that you can start over and the minute you file, they can not attach your wages and a huge load will be lifted off your shoulders. I had to do many years ago. good luck.
DO IT Let me tell you something, I know someone tha filed BK a year ago and is now aproved to have a house built from the gorund I have no clue how this can be done; but I know they are doing it because I am watching them do it. So I say learn a lesson and use your credit WISELY on your 2nd GO AROUND and GOOD LUCK AND GOD BLESS !!!!!!!!!!!!!
