How Chapter 7 And Chapter 13 Bankruptcies Will Affect Your Credit Score
Your Credit Score will be affected whether you file Chapter 7 or Chapter 13. But which is worse on your Credit? In this article I will discuss the Pros and Cons in regards to how each bankruptcy will affect your personal credit rating. Over the years in the Mortgage Industry I have dealt with the affects of these different bankruptcies, and how each one affected your ability to get financed. I know that each has its purpose, but I do know which one I would not file personally.
A chapter 13 bankruptcy is where the lawyer gets most of your debts consolidated into a payment you can afford. You make these payments to a trustee for a period of time. This particular bankruptcy is the one I would prefer over Chapter 7. One of the main reasons is the lenders look at Chapter 13 less harshly than a Chapter 7. The main reason is you are attempting to pay back your debts. You can get a mortgage if you are in a Chapter 13. You cannot get a mortgage if you filed Chapter 7 for usually 2 years. Chapter 13 stays on your credit report for 7 years. A chapter 7 stays on your credit report for 10 years. So you can begin to see how a Chapter 7 is going to affect your credit rating vs. Chapter 13. Typically Chapter 7 sounds like the better way to go, but think twice before you file. Once you make your decision, the last thing you want to do is have regret, because of the credit impact each one has.
Chapter 7 is where you wipe out all debt and there are no requirements to pay back your debts what so ever. There are big repercussions to your credit score when you file Chapter 7. Chapter 7 is the ultimate death of your personal credit. This particular bankruptcy stays on your credit for 10 years. There are certain situations where you must file Chapter 7. but if you don't have to file chapter 7 don't. This bankruptcy takes more time to recover from, and lenders don't like seeing it on your credit report. Typically it is easier to re-establish your credit with Chapter 13 vs Chapter 7. So I think you get the picture how your credit is affected either way. It is always better to pay your debts back if you can, and not file Bankruptcy at all. Just remember your Credit is your life.
How Chapter 7 And Chapter 13 Bankruptcies Will Affect Your Credit Score
How Chapter 7 And Chapter 13 Bankruptcies Will Affect Your Credit Score
What is the best secured credit card to help rebuild credit after a bankruptcy?
I am looking for something with no application fee, reasonable annual fee, reports to the major credit bureaus and possibly converts to an unsecured card after 12-18 months of on-time payments.
Is illegal to lie on a credit card application?
Is illegal to lie on a credit card application about your job or career title and how much money you actually make at this phony job? I am planning to file bankruptcy. I am actually unemployed and was when I filed out the card application and then upon receiving and activating it I maxed it out in a matter of 5 months. Can I be prosecuted in criminal court for this? Will my bankruptcy be denied?
Can you apply bankruptcy while the credit card company is suing you?
How much normally a bankruptcy application in Canada will cost?
all we have is:
- rusty 13 years old car
- 2 laptops
- couch worth $2,500
- bed with broken legs
- kitchen utensils
- wii but the sensor bar is not working
- old 27″ tv, never been used for couple of years now
A question about credit card applications (see details below)?
Some credit card applications ask if you’ve ever had a bankruptcy in your past credit history. If you did previously file for bankruptcy and it has since been discharged from your credit record, would it be okay to just say you have never filed for bankruptcy when you fill out the application?
They wouldn’t be able to find it anyway if it is supposed to be removed from your credit record right? Also, would it be considered unethical to lie on the credit application and could this end up hurting your credit history if you did this and were caught doing it?
capital one
I don’t know much about Canadian law. In the US, you would be able to file, and the lawsuit by the credit card companies would be put on hold pending the bankruptcy. It don’t see anything on your list I think they could take, with the possible exception of one of the laptops and the couch. You forgot to mention cloths, but a reasonable amount of those would be protected in bankruptcy.
talk to a lawyer I think you should not have falsified info. like name s.s dl Thanks And Star
application, that qualifies as fraud through misrepresentation for financial gain, and you can be prosecuted or not be able to lose the debt through bankruptcy. But, those are the facts as I understand them. Now then, back to your question. There are certain questions that you don’t have to answer correctly. Let’s say you live in a state where you only have to declare a felony conviction on a job application for 3 years – and you’re filling out an application 4 years after you were released: you do not legally have to list that conviction (depending on the position you’re applying for).
Just re-read your question… Given this sentence “…you’ve ever had a bankruptcy in your past credit history”, I would say no, if the bankruptcy happened more than 10 years ago and has fallen off your credit report. The term “credit history” refers (in my opinion) to the 7 – 10 years that current credit can be reported.