Am I imagining things or is it true that when you B.K. that is the end of the problem. I have chargeoffs and I didn't know that they are collectable from 3 years ago. Is doing a B.K. really destroying your credit or it just giving you a fresh start. My fiance is jumping on my case and telling me that I should have B.K'd 3 years ago and that I would have decent crdit today without these dang chargeoffs hanging over my (our) heads.
I think what your fiance is true to a certain extent......depends on how much debt you were in at the time. He is right though....I see people 2 years out of BK buying HOUSES, getting cars and credit cards, etc.!!!!! The only thing you can do after you dispute and get whatever you can removed is to pay them....then later re-dispute in hopes that they won't verify since it's paid. Nothing directed towards you but I have little simpathy for debts that are legit. I know people have gone through hard times, etc. but bottom line is they extended you credit, you didn't pay back. It's the people that are suffering from credit reporting mistakes by the lenders or CRAs that I feel really bad for. I guess what I would like to know is when IS IT REALLY time to file BK? $20k in debt? $30k in debt? What???
I does seem that people who B.K. buy what they want 2 years later. I probably should have done it. My fiance is sick of me asking him about getting a AMEX gold card through AMEX or Fidelity. LOL. 3 years ago I did not know any better so I didn't B.K.
Yes it is a fresh start. A fresh start for subprime hell. Even if the people you mentioned were lucky enough to buy houses and cars 2 years after, they are paying dearly for it with mafia-rate interest. Same will be the rate for revolving debt on your future credit cards. And if you leave any unpaid debt to prime lenders (such as Amex and Citibank), you will NEVER EVER get their cards again, unless & until you pay. Don't just figure how big your debt currently is. Think how big it's gonna be when the only card you're gonna get is the Aria Persona, NO grace period and 24% interest (if you default, it's much higher, and you can't file BK again). Bankruptcy (depending on the chapter) will stay 10 years on your report. Your chargeoffs, however, will be gone in 4, and even while present won't hurt your credit as much as a BK. If you REALLY can't pay all your debt, try debt consolidation first. No, it's not the easy way, but it may very well be the only way. Saar
From what I have read, the worst thing to do is the bk over a few charge offs which are very low. BK is very damaging and will follow you for 7-10 years. There will always be something you can't get, because of a bk when others who didnt bk can get after the charge off is paid. That is my opinion based on what I have read at this site and many others. I think our fiance is wrong. roni
Angela, my bk is almost nine years old. Until it falls off all my reports (its' only deleted from Experian) I will not be able to receive any prime cards at all, period. Sure, I qualify for a credit card, home mortgage, car loan. But not at the best terms. Besides, if you are insolvent, judgment proof, there is no need to file. Some states don't let creditors garnish wages for many debts (other than gov't - ie student loans, taxes) I should not have filed - I was judment proof - medical debts galore - displaced worker - student Kelly
I filed bk back in 94 and I dont regret it because of the situation I was in.I have a couple of sub prime cards and a car loan.
I agree it depends on the situation. Angela describes 3 charge offs as her reason. Would you say that warrants a bk? roni
Angela, i would ignore the debts, its VERY hard to collect on unsecured debt. When you get back on your feet, you need to decide to settle the debt (50%) or settle with terms of the credit report, or not at all.
If you wouldn't mind answering and if not that is fine, but what amounts are we talking about, what are the totals of the 3 accounts??? Mom
I agree, BK is an option for some. In fact, I encouraged my in-laws to file so that they didn't lose their home. I was just relying on what Angela has said and implied about her situation. I agree you can have sub-prime cards, and car loans. I didn't mean to imply that you couldn't, I was talking about prime and many retail (not that we care about those anyway) Kelly
bull sh-t file bk you will be better off.1 year after your bk you will get a prime rate on a new homw 3 to 5% down.you can get just about all negitive maks removed from your reports, including chapter 7 and 13 remove in about 1 year if you work at it I DID.
MIKE wrote: "you can get just about all negitive maks removed from your reports, including chapter 7 and 13 remove in about 1 year if you work at it I DID." What work would that be, robbing banks and using forged Social Security numbers? Saar
