Question about Chap 7

[Carloscda]

Besides the obvious, Chap 7 vs Having alot of debt on your credit report?

With what creditors look at, is Chap 7 ideal in the long run when trying to buy a home?

[tcreegan]

on credit report

Hello Carlos,

Obviously a bankruptcy is going to knock down your credit. You need to have plan in place to rebuild credit w/0 getting into the problems that got you here in the first place.

If you don't do a bankruptcy, you will start getting sued and companies will get judgments against you. These judgments are BAD for your credit score.

Do the bankruptcy, and check your credit report after it is all over. Any judgment needs to go away. They are BAD for credit reports. You can just write Experian/TransUnion/Equifax and explain about the BK and ask them to remove it. If that doesn't work, go to the court were you were served and file a motion to "vacate the judgment" Send this in and keep badgering TransUnion/Equifax/Experian until they remove the judgments from your credit report.

Now get those way past due accounts to be listed as "discharged in bankruptcy" If they leave it with all the days late, amounts late, etc it hurts your credit bad. If it is listed as ''discharged in bankruptcy" the credit score is not as badly hurt.

When I got the judgments removed and the delinquent accounts listed as "discharged in bankruptcy," my credit score just about doubled.

To get a good loan after BK, have a high credit score! This tells the loan officer you had a bad time but have recovered from it and are doing well.
That is what they want to see.

Best of luck with this!!

Tom in Colo