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Case #1 - Someone very close to me had to file Ch. 7, 6 years ago. To this day still cannot get even a mortgage loan even though they have been at their job for 20 years, pay bills on time, have no crdit cards since the filing, etc.
Case #2 - Another person I know, their brother has filed 2 or 3 times (Ch. 7), and has bought/sold/lost 4 houses before, during and after each filing (at different times, not 4 at once) and one house was even foreclosed on. Then he waited a few months and was able to get another one.
Figure that out????? I wish I could.
For Case #1 - Since he/she had no credit cards since filing bankruptcy - they've done nothing to rebuild their credit history. The only credit they have is BAD credit. Good credit is something that you develop (or re-develop) over time. Six years of carefully cultured credit could have qualified them for a pretty low mortgage.
Reaffirming the debt is formalizing that the debt will be repaid. Basically you are giving up the protection offered under bankruptcy. The creditor is not required to report good credit, but will go out of their way to report bad credit.
If you don't reaffirm and you continue to pay for your home and vehicles, you can keep them. If you can't pay, you can give them back - no harm, no foul.
If you reaffrim and miss a payment, they can take them back AND sue you.
We went from 80K to unemployment... been unemployed now for 1 year. We had to file #7 and the only thing we didn't file on was our home and my old Harley. We had one car paid for and let the other go the other debts we let go were all credit cards. Our bankruptcy was discharged 4 -5 months ago. Our house is current and the Harley is current. Our credit rating has been mid 700's all our married life. Hard thing to go through. We should be rebuilding credit now with the house and bike but not sure what the numbers are. We would like to sell our home in a year and buy another across the State of Michigan. Do you think we will be able to get a mortgage?
Sorry to hear about your job loss. I am originally from Michigan myself. I have 4 family members that filed bankruptcy within the last 3 years. Some were irresponsible and some hit major hard times. I filed in 99. I survived and we bought 2 houses since then. My BIL filed 4 years ago. He just bought a house this past fall. The rule is you have to wait 3 yrs for FHA. BUt then I heard its now 4. Something to look into. You will be able to obtain credit again. Its a slow process and yes you will pay more in interest. My BIL got a good rate on his mortgage though. He went to several banks and there are rebuild credit programs. How the program worked for him is he would get a loan for 2 grand. But it wasnt really a loan. He put 2 grand in an account and then made payments on a fake 2 grand loan. When the loan period was up, he had 4 grand. He did this several times. Loans bring up your credit score a lot faster than a credit card. SO basically these loans he got were secured. Bankruptcy is not easy but its not a death sentence either.
Does anyone here know how much a bankruptcy lawyer costs? (nyc area)
I had a family member file and it was a 1,000 dollars but that was in Michigan.
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