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Does bankruptcy ruin your credit?

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Answered 2013-06-07 05:48:43

This is an incorrect assumption that leads many people to avoid filing for bankruptcy. They fear that a bankruptcy will ruin their credit for a long time and that they will not be able to use credit, rebuild their credit or purchase a home in the future. The reality is that the majority of the people who are considering bankruptcy, already have poor credit, due to late payments, repossessions and foreclosures. Further, most people who file for bankruptcy can rebuild their credit to a relatively good level after two years. This depends significantly on what they do after filing for bankruptcy. It is important that you work toward rebuilding your credit after filing for bankruptcy.

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The bankruptcy will appear on their credit if you include this card in your bankruptcy. If you leave the card off the bankruptcy, it will not effect their credit.


Bad credit is not the only disadvantage to filing for bankruptcy. The most obvious disadvantage of filing for bankruptcy is that it will ruin your credit for at least 7-10 years. Some other disadvantages include:* Losing credit cards* Losing non-essential possessions* Inability to obtain a mortgage for some time* Embarrassment* Not all debt will be discharged


Yes, you can include your negative checking account balance in a bankruptcy. Be aware that your account will be closed and this will ruin your credit with this bank and potentially other banks.


Bankruptcy lowers your credit report.


There are many companies that specialize in bankruptcy credit counseling. Companies that specialize in bankruptcy credit counseling include Alliance Credit Counseling, American Consumer Credit Counseling, and Approved Bankruptcy Certification Services.


will bankruptcy increase you credit score over time


If your partner files for bankruptcy and you don't then the bankruptcy will not appear on your credit report. But you will be partly responsible for before bankruptcy filing. Generally filing bankruptcy will affect the credit rating of the individual who filed it.


Filing bankruptcy does not remove a charge off report from a credit card on your credit report. It just adds bankruptcy to your credit report.


You do not have to necessarily get credit counseling before you can file for bankruptcy.


A bankruptcy will remain on a credit report for the required ten years, it cannot be removed arbitrarily.


Pay everything else with credit and use your money to pay off student loans, then file bankruptcy. Although that would ruin your life as filing bankruptcy does the exact opposite of what you think it does, your better off dodging student loans and paying off all other debt first.


The only way to remove a bankruptcy from your credit report is to dispute it to the credit bureaus. The credit bureaus have 30 days under the Fair Credit Reporting Act, to verify your bankruptcy withe the court that filed it or it must be removed from your credit report.


Debts included in the bankruptcy should be noted as such in the credit report. The bankruptcy will remain on the credit report for ten years.


No. Backruptcy will always appear on your credit. After 7-10 years your credit will be as good as someone who has not filed bankruptcy.


When in bankruptcy it is not possible to have a credit card. Once the terms of the bankruptcy have been met, some credit card companies will consider issuing a credit card to some people.


You can declare bankruptcy due to credit card debts, yes.


Yes. It is more difficult, but it is also ESSENTIAL to recovering from bankruptcy. You must take out credit and have precise, on time payments in order to help rebuild your damaged credit score post bankruptcy.


insolvency, failure, disaster, ruin, liquidation


If you are surrendering your house anyways, it is usually better for your credit score if you do it through bankruptcy. If your house is foreclosed on before you file bankruptcy, then your credit score is hit by both the foreclosure and the bankruptcy. If you let your house go back through bankruptcy, instead, then your credit score is only hit by a bankruptcy.


The amount of time a bankruptcy stays on your credit report after discharge differs between Chapter 7 and Chapter 13 Bankruptcy. With Chapter 7 bankruptcy, the Chapter 7 stays on your credit report for 10 years. Chapter 13 bankruptcy, after discharge, it shows for 7 years on your credit report.


Yes you can remove a bankruptcy from your credit report. You must dispute it to the credit bureaus using the Fair Credit Reporting Act. The credit bureaus have 30 days to verify the listing or it must be removed from your credit report. A bankruptcy should only be disputed if it is erroneous or inaccurate.


Not if the debt was discharged in the bankruptcy. If the judgment was on the credit report before the bankruptcy was filed and/or was discharged in the bankruptcy, the entry will still remain on the CR for seven years.


There are many places where one can find information about after bankruptcy credit. One can find information about after bankruptcy credit at popular on the web sources such as Bank Rate and MSN Money.


The fact that you have a repossession on your credit report is not a determining factor of whether your can file for bankruptcy. Generally in bankruptcy you can remove the debts from the repossession of your vehicle.


Your credit score will go down drastically with a bankruptcy reporting on your credit reports. All your items included in bankruptcy will be reporting too. The best thing you can do is try to remove the bankruptcy by disputing it to the credit bureaus. You will also need to dispute everything that is included in bankruptcy. You will also need to pay your bills on time, get a variety of credit and begin a good payment history on your other accounts.



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