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When filing for bankruptcy and owing to a line of credit does the bank still keep the house even if this one is protected with a homestead insurance?


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2015-05-16 19:29:08
2015-05-16 19:29:08

Generally speaking, when Chapter 7 bankruptcy is declared, it means a person's debt exceeds their assets. If the amount of debt owed to a mortgage bank for a home, the bank has no interest in taking a home which will not cover the mortgage debt. All debts are wiped away.


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Life insurance loans are not on your credit report.

Trade Credit Insurance is a type of insurance which is offered to businesses. The insurance policy covers accounts receivable, guards against bankruptcy, and protects the business against credit risks.

Yes, you can still get insurance after bankruptcy. You may have to pay a higher premium though due to a poor credit score. You also may want to shop around for a better rate. There are still insurance companies in the United States that do not credit score.

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.

There is no best insurance company for a Bankruptcy. Some Insurance Companies will not accept application for coverage from people with a bankruptcy. Some will accept you application but may charge you a higher rate. Yet other companies just don't check credit at all so it would not matter to them if you've had a bankruptcy or not.

Generally you have to list your home as an asset. But there are different kinds of bankruptcy, and if things work out, your home ownership could be protected. See a bankruptcy lawyer!!

Bankruptcy lowers your credit report.

I don't actually work for an insurance company, but I do know that credit can affect your rates (bad credit = worse rates). Insurance, after all, bases its life on risk: the riskier they think you are as a client, the higher your rates. Credit is the same way, so it only makes sense that a bankruptcy would increase your auto insurance rates. Yes, bankruptcy will affect your insurance rates. I have Erie insurance and my rates did go up quite a bit. My home insurance more than my auto insurance. I had only filed one claim on my home insurance in 27 years and never late in payment and yet my rated jumped almost $200. I was told this was because of the bankruptcy. I recommend you this site where you can compare quotes from different companies:

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.

not much. should not matter too much. homeowner's insurance is anyway too low.

All companies I know of will issue a home insurance policy after bankruptcy. The only factor bankruptcy plays is in how much you will pay. Some insurance companies use your credit as a factor in how much they will charge you. Some companies do not use credit scoring at all. Best thing to do is shop around and find the best coverage for the best rate you can find.

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

What needs to be done to get bankruptcy off credit repot

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.

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.

How a home is handled in bankruptcy depends on the type of BK filed, state or federal or a combination of the two. In chapter 7, all nonexempt assets are liquidated to pay creditors. The state or federal homestead exemption would apply in regards to the home. In a chapt. 13, debts are consolidated and a payment plan of 3-5 years is set up to repay creditors. And any secured debts are usually reaffirmed with the lender. You can refer to the bankruptcy statues of your state to ascertain if your home is protected by the homestead exemption amount.

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