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Is it better to file for bankruptcy or just wait for foreclosures to be removed from credit report?
Wiki User
∙ 18y ago
The answer will vary on a case by case basis, so you might consider consulting with a lender if you are thinking about getting some type of financing. A foreclosure stays on your credit rating 7 years and a bankruptcy will stay for 10 years. if the foreclosure has been completed, a bankruptcy might hot help your situation unless the creditor is coming after you for a deficiency judgment. On the other hand, you might have bad credit because of other debts that might be dischargeable in bankruptcy. Get a copy of your credit report and then talk to a lender. For tax purposes, there's a huge difference between the two: One very important thing to keep in mind is that a foreclosure will result in the amount of the writeoff being reported to the IRS as income. The lender would send you a 1099-A (Acquisition or abandonment of secured property) and/or a 1099-C (Cancellation of Debt) at the end of the year, stating the amount of the debt that was written off. You would then have to include the amounts as additional income on your tax return ... imagine suddenly having to pay taxes on an additional $140k+! Amounts discharged as a result of bankruptcy are not reported as income on your tax returns. The 1099 will still be sent out, but the very important box "Check for Bankruptcy" will be marked.
Wiki User
∙ 18y ago
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Is it better to have a repossession or a bankruptcy on your record in regards to credit recovery?
Neither is good. However, a repossession does less damage and is removed from your credit report within less time than a bankruptcy.
When will a 1999 discharged bankruptcy be removed from a credit report?
It should be removed from the credit report in 2009. A bankruptcy remains on a credit report for ten years from date of discharge.
Will a credit score change when a discharged bankruptcy is removed from the credit report?
Yes, but only after the bankruptcy is removed from your credit report - which can take over ten years from the discharge.
If you have a repossesion on your credit report when you file for bankruptcy will that be removed from your credit report?
No. The repossession will be its own listing. If is was including in the bankruptcy, it will be listed as 'included in bankruptcy' but it will still be listed as its own listing.UPDATE: Actually, you can force Equifax, Experian and TransUnion to remove a Bankruptcy from your credit report and you can do it legally using a federal law that is in place. Credit Bureaus MUST have "verifiable proof" of the "bankruptcy" in their files if they are going to report the negative item on your report. The dirty little secret the credit bureaus don't want you to know is that they do not have any "verifiable proof" in their files for any of the negative items on your credit report. The Federal Court that the bankruptcy was filed in may have this information on file but the credit bureaus don't. If you request the credit bureau to provide you with the "verifiable proof" that they have in their files they will remove the negative from your file.Not only can you get a Bankruptcy Legally Removed from your credit report but you can also get Foreclosures, Default Judgments, Tax Liens, Repos, collections etc...all removed. All negatives no matter how bad, how many or how recent ... they all can be removed legally!
Can a bankruptcy entry on a credit report be removed when the bankruptcy was discharged in 1999 and it is listed on the credit report as 2006?
No, it cannot be removed but the information can be amended to read correctly. A bankruptcy discharge remains on a credit report 10 years from the date of discharge.
Is it better to have a repossession or a bankruptcy on your record in regards to credit recovery?
Neither is good. However, a repossession does less damage and is removed from your credit report within less time than a bankruptcy.
Will a credit score change when a discharged bankruptcy is removed from the credit report?
Yes, but only after the bankruptcy is removed from your credit report - which can take over ten years from the discharge.
When will a 1999 discharged bankruptcy be removed from a credit report?
It should be removed from the credit report in 2009. A bankruptcy remains on a credit report for ten years from date of discharge.
If you have a repossesion on your credit report when you file for bankruptcy will that be removed from your credit report?
No. The repossession will be its own listing. If is was including in the bankruptcy, it will be listed as 'included in bankruptcy' but it will still be listed as its own listing.UPDATE: Actually, you can force Equifax, Experian and TransUnion to remove a Bankruptcy from your credit report and you can do it legally using a federal law that is in place. Credit Bureaus MUST have "verifiable proof" of the "bankruptcy" in their files if they are going to report the negative item on your report. The dirty little secret the credit bureaus don't want you to know is that they do not have any "verifiable proof" in their files for any of the negative items on your credit report. The Federal Court that the bankruptcy was filed in may have this information on file but the credit bureaus don't. If you request the credit bureau to provide you with the "verifiable proof" that they have in their files they will remove the negative from your file.Not only can you get a Bankruptcy Legally Removed from your credit report but you can also get Foreclosures, Default Judgments, Tax Liens, Repos, collections etc...all removed. All negatives no matter how bad, how many or how recent ... they all can be removed legally!
Can a bankruptcy entry on a credit report be removed when the bankruptcy was discharged in 1999 and it is listed on the credit report as 2006?
No, it cannot be removed but the information can be amended to read correctly. A bankruptcy discharge remains on a credit report 10 years from the date of discharge.
How do you get bankruptcy off your credit report?
A bankruptcy will remain on a credit report for the required ten years, it cannot be removed arbitrarily.
How can a bankruptcy be removed from a credit report?
i don't think you can have it removed, but if you can wait 10 years it should disappear automaticly (you better check after 10 years to be sure).
After seven years when debts from a bankruptcy are removed from the credit portion of your credit report will the bankruptcy still reported in the public record portion affect your credit status?
bankrupcires stay on for 10 yrs. But when you gfinalize the bankruptcy the debts are automatically removed anyways.
If you just divorced and already have foreclosures and repossessions on your credit report will filing bankruptcy help your credit score?
No, filing bankruptcy will never help improve your credit score, it stays on your report 10 years whereas a repo or foreclosure normally remain 7 years. So bankruptcy would only make your credit worse.
How do foreclosures affect your credit?
Same as a bankruptcy There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure.
How long does a foreclosure initiated stay on your credit?
Foreclosures remain on your report for 7 years. It is difficult to get a foreclosure removed.
How do you remove bankruptcy from your credit rating?
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.
