So you've made the decision to go bankrupt or you've already done the obvious either in the past or just recently.
If you've not gone through with your bankruptcy then I suggest you read this article to understand what kind of next 7-10 years your into.
The date is 2001 your sitting in the lawyer's office filling out the paperwork to prepare for bankruptcy. The lawyer is asking you a series of questions while taking notes on your debts.
As you trowl through the paperwork your debt gives you the overwhelming feeling of disappointment.
You give your deposit to your lawyer and he will finish the paperwork and meet you in court soon.
Court date arrives, your sitting there waiting for your name to be called up to the judge. You watch while each person gets called up and some have creditors there greeting them to dispute any items showing up on the court paperwork.
Finally your name is called and you sit in front of the judge and show your drivers license for proof of identity and they record your name on a tape recorder.
They ask you a series of simple questions and ask if any creditors are there for your case, hmm no one, you thought after all the items you've had listed someone should of come up.
Your lawyer guides you through the process of questions and you then have to sign some paperwork while your finishing up.
You leave the court house with a sigh of relief that your worries are over and your debt free.
A few months later you get a letter that your Chapter 7 is discharged and complete.
Step forward 2 months later and you apply for a car loan through local dealers, you get a phone call later that your denied from every bank. Gezz didn't think it was going to be this hard.
You continue your search for a bank who will give you a second chance, after a few weeks you get a 29% interest rate on a car loan with $1K down.
You get your car with $389 dollar a month payment for 5 years, ouch for a vehicle which is worth about $150 a month.
You decide to get the car since you've got little chance of getting approved elsewhere.
Step forward 8 months later you've been paying your car all along and things seem ok, you want to get your credit moving and get a credit card.
You apply for a high interest credit card and get approved @ 21% with $45 late fee's and $45 dollar over the limit fee's and a $300 dollar limit.
4 months later your credit card is maxed out at $298 dollars...
You run into some problems financially where you've got no choice but to miss either the car or the credit card payment.
You miss the car payment because the payment is much higher each month, what's one month?
Now your credit report hit's 30 days late ouch your score drops from 601 to 540 :(
Next month you cannot catch up and they report you late again although you make your payment but that one payment is still behind.
Now your credit score report hit's another 30 day late and your score drops from 540 to 480.
This continue's until finally you get yourself caught up.
You vow to not be late again this is not how things should work and for 5 years your not late anymore.
The scoring system was not easy on you after bankruptcy but now your score is really bad and you've already gone through bankruptcy.
You need a new car your loan is finished and this car has had it.
You go all over the place to get approved but no one wants to touch your credit,
excuses after excuses why you can't be approved..... "You went bankrupt and you've not been on time with your payments", "You need a few more years to get approved just keep paying on time".
Guess what you've wrecked your scores because you did the all no no, you do not want to miss any payments after bankruptcy period or your scores will take a dive.
If you've managed to not be late your scores should be pretty good but not great.
Don't think even if you've been a good boy/girl that you'll get whatever you want cause those days are over.
2 more years later, your almost close to getting the bankruptcy to fall off your report yahooo you think it's almost over.
You apply for a mortgage and get denied all day long they wouldn't touch you with that bankruptcy on your report.
What a ride this many years and you thought you've heard stories about how easy it is to get credit back after bankruptcy, I can tell you while you can get approved the interest rates are high and limits are low and forget local banks they hate your credit.
If you've got any marks on your report between when the bankruptcy and when it falls off your score will take a bigger dive because now your going to be judged against people with perfect credit.
So the goal here is to not be late and avoid bankruptcy if at all possible like a plague it'll destroy your chances for getting credit for a looonnnggg time.
I hope you understand the impacts of bankruptcy it's not a fun game to play with.
Need some help fixing that credit click the contact form on the top left.
No comments:
Post a Comment