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Karla is correct, a BK will stay on your credit report up to 10 years but it can follow you for the rest of your life. If and when you apply for a mortgage, you will be asked if you ever filed for bankruptcy. Your answer will affect your ability to get a loan and your interest rate. It does not matter if the bankruptcy is no longer on your credit report, you still must disclose your bankruptcy. Don't make the decision to file bankruptcy lightly.
Incorrect, you will be asked if you filed for a bankruptcy in the last 10 years.. they can not, and do not ask if you EVER filed bankruptcy.
My post said "up to" 10 years which would mean the same thing as the max.
I would be interested to hear how filing for bankruptcy will not impact your ability to get a mortgage in the future. That is a standard question on mortgage applications.
A mortgage company will ask if you've filed bankruptcy in the last 10 years, however I have seen people come out of bankruptcy and get mortgages the day after. A mortgage company is interested in your ability to repay, and since you have no debts after bankruptcy, and cant go bankrupt for another 7+ years, someone who files bankruptcy is a better credit risk then someone who has questionable credit.
1. Get rid of the cards
2. Figure out a budget including a plan to make some more money or cut back on what you spend
3. Either get a private loan to consolidate or contact the companies personally to try to arrange a deal with them. You can do it on your own without going to an agency
4. Have a garage sale and get rid of the stuff you bought if it was tangible.
5. Put some money aside in case you have a problem so you don't have to use credit cards for car repair
6. Never use credit cards again
A mortgage company will ask if you've filed bankruptcy in the last 10 years, however I have seen people come out of bankruptcy and get mortgages the day after. A mortgage company is interested in your ability to repay, and since you have no debts after bankruptcy, and cant go bankrupt for another 7+ years, someone who files bankruptcy is a better credit risk then someone who has questionable credit.
I never said a person would be unable to get a mortgage. I stated that it would impact your ability to get a mortgage and affect your interest rate.
Over the last 8 years, the laws relating to credit histories have changed. The Fair Credit Reporting Act, the controlling law, changed in 2006 and 2007.
The other poster was correct.
And, like the other poster, I have seen a person get a new home loan, very shortly after the discharge of a BK, at market rate - not higher.
I stated that it would impact your ability to get a mortgage and affect your interest rate.
I would change the word "would" to "may".
For it actually depends upon why a BK was file / discharged.
For instance, a job layoff, an accident, illness caused you to get behind. One went through BK because of involuntary issues. FHA loans for instance, look closely at the REASON for the BK.
I've had clients that the only debt discharged was IRS income tax and penalties. They re-affirmed their other debts. No penalty
If it was due to something outside of the debtors control - no penalty.
If it was something within the debtors control - then, there may be a penalty
I never said a person would be unable to get a mortgage. I stated that it would impact your ability to get a mortgage and affect your interest rate.
I never stated or even implied that you stated that a person would be unable to obtain a mortgage, I simply responded to your posting of
"I would be interested to hear how filing for bankruptcy will not impact your ability to get a mortgage in the future. That is a standard question on mortgage applications."
All I did was state examples on how filing bankruptcy can actually help individuals obtain a mortgage.
Over the last 8 years, the laws relating to credit histories have changed. The Fair Credit Reporting Act, the controlling law, changed in 2006 and 2007.
The other poster was correct.
And, like the other poster, I have seen a person get a new home loan, very shortly after the discharge of a BK, at market rate - not higher.
I attempted to look up the changes to the law that you mentioned and could not find anything stating that the question,"Have you ever filed for bankruptcy?" could not be asked on an application. I would be greatful if anybody would point me to some documentation verifying that. I was asked this question on my mortgage application, although I admit, I have not applied for a mortgage since 2003. If I'm wrong, then my statements obviously need to be corrected so other posters won't be confused.
I never stated or even implied that you stated that a person would be unable to obtain a mortgage, I simply responded to your posting of
"I would be interested to hear how filing for bankruptcy will not impact your ability to get a mortgage in the future. That is a standard question on mortgage applications."
All I did was state examples on how filing bankruptcy can actually help individuals obtain a mortgage.
I must apologize. Reading back over what I wrote, I came off as being a bit testy. I had raging headache and should not have been posting when I was grumpy.
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