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How much bad credit are you allowed to have to file bankruptcy?
Wiki User
∙ 14y ago
It is more complicated than just having bad credit. When applying to file for bankruptcy, the court using a calculation that compares the amount of debt owed with your current (or foreseeable future) income. So it is the debt rather than the bad credit that allows you to file for bankruptcy. More specifically, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income.
Wiki User
∙ 14y ago
Wiki User
∙ 13y agoyou can actually spend it all, and if you are going to go bankrupt, start spending, buy clothes and furniture and stuff, the creditors will have the opportunity to show up at the meeting for the sake of argument, but they usually never do and they really don't want the clothes off your back.
Any debts incurred, or assets transferred within 2 years of your filing date are excludable from bankruptcy protection, and frequently are almost automatically. If your doing so appears to have been intentionally in the anticipation of filing, that is a criminal act and is frequently pursued as such.
The jibberish the other commentator provided having to do with if a creditor shows up at the 341 meeting or not, is ignorant. Appearing there , except in very unusual circumstances, has no real meaning. The filing of a timely proof of claim does. And of course there are ample opportunities to provide the court any other evidence a creditor may want to have considered. (Like a credit application showing assets or incomes (or other debts) that don't jive with the BK filing and asking for an explanation, or requesting criminal fraud if that sworn document was a lie to have them provide credit....).
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If I file bankruptcy on my credit cards only how much does it effect my credit?
You probably won't be able to get credit for the next seven years.
What happens to your credit rating when you file bankruptcy?
Credit rating plummets when filing for bankruptcy. Bankruptcy should be the last resort and one should try everything to not go bankrupt - keep saving as much as possible.
How much income is too much for chapter 7?
Income has little to no determination on one's ability to file for bankruptcy. It's the debt to income ratio that most bankruptcy courts look for. Consult a bankruptcy attorney; there may be other options that will not impact your credit as harshly as bankruptcy.
Since their clients don't tend to have much money, how do bankruptcy law firms make money?
It costs money to file for bankruptcy. Usually the cost is added on as a credit towards your debt when you file. this site here will give you more information on bankruptcy http://www.boston-bankruptcylawyer.com/article-how-do-bankruptcy-lawyers-make-money.aspx.
Which hurts your credit worse bankruptcy or late payments?
Late payment will drive your credit score into the ground rapidly. Many people question filing a Bankruptcy even though their credit is shot through late payments on mortgages and other bills. Filing Bankruptcy put all collection activity on hold and your accounts show current and up to date as long as you make your payments on time. Most people are surprised tofine their credit in much better shape after a BK than before with a much higher credit score Late payments can always be corrected, and this will be reflected on your credit file. Bankruptcy, however, will stay on your credit file for six years.
How much does a bankruptcy negatively affect your credit score?
A bankruptcy stays on your credit report for 10 years and you may have to answer about it for the rest of your life. Who knows what effect it has on your credit score? Companies that lend money. Only when you apply for credit after bankruptcy will you know the full detrimental effect.
If you add your wife who has a discharged bankruptcy 4 yrs ago to your credit card can hurt the husband's stellar credit score?
Yes. But not as much as if the husband did the bankruptcy.
How much debt can you have before filing for bankruptcy?
There's no maximum amount. If you can't make your payments you file bankruptcy.
I need to know how to file bankruptcy.?
You need to contact a bankruptcy lawyer since you need to have one to file. Which chapter depends on how much money you have, you may not qualify for chapter 7 if you have too much money.
In what year did WorldCom file for bankruptcy?
WorldCom filed for bankruptcy in 2002. At the time, it was the largest bankruptcy ever, with $107 billion in assets. This almost twice as much as that of Enron Corp.
Will the credit of a co-signer of your mortgage be negatively affected if you file bankruptcy?
Well, only slightly if he makes all the payments due in a timely fashion. But if he doesn't, because he is responsible for the loan, then very much so.
Will your credit score go up when a bankruptcy comes off?
Yes, a Bankruptcy is one of the most damaging accounts which can show up on a credit report. The good news is that after 2 years, the account doesn't impact your credit score as much. Once it is deleted, your credit score is improved.
