Repair Credit Score

Archive for October, 2008

Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy

Below is a comparison of Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy. When filing for bankruptcy, most people choose between a chapter 13 or 7 bankruptcy. Chapter 7 and Chapter 13 Bankruptcy are designed for different purposes. This section of Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy provides a comparison of Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. There are many sources for information on chapter 7 and 13 bankruptcy.

When deciding between a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy, use the following Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy chart to help you make informed decisions.

Bankruptcy situation 1: How would my Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy work if I am very behind on your mortgage payments?

Chapter 7 Bankruptcy:

With a Chapter 7 Bankruptcy, you will probably have to give your real estate property back to the bank whom you owed the mortgage payments. Sometimes, you can negotiate with the bank to pay the value of the nonexempt equity to the bankruptcy trustee from any income you have since the filing of Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy:

With a Chapter 13 Bankruptcy, you can repay what you owe over 3 to 5 years and keep the current mortgage payments on time. If you file a chapter 13 bankruptcy, you will keep your home.

Bankruptcy situation 2: How would my chapter 7 bankruptcy vs chapter 13 bankruptcy work if I filed for bankruptcy previously and received a discharge within the past 8 years?

Chapter 7 bankruptcy:

If you previously file a chapter 7 bankruptcy within the past 8 years, you cannot re-file a chapter 7 bankruptcy. However, if your previous bankruptcy was a chapter 13 bankruptcy, then you can file another bankruptcy IF you paid at least 70% of your debts off during the repayment period.

Chapter 13 bankruptcy:

If your previously filed a chapter 13 bankruptcy, you can re-file another bankruptcy. Under the new bankruptcy law, you have to wait at least 5 years between each bankruptcy filing.

Question: Paying off an auto loan makes your score drop?

I just paid off my auto loan, but it hasn't hit my Credit Report yet.
When I used one of those what if scenario calculators it said that my score would actually drop points because of it. Is that true? That seems a little backwards to me.

Answer: Paying off a vehicle should make your Credit Score go up if you paid them promptly and fully. You need to have in hand a "satisfaction" which means your loan documents should be returned to you with the word "paid in full" on them with a date. If you didn't get them then write and ask for them. If no one has turned that into the credit bureau for you you can turn in a copy of the paid in full documents (to all 3 credit reporting agencies) and just say you noticed they weren't on your report and you'd like them to be. See what they do.

If you didn't buy your car new or if you bought it at a buy-here-pay-here plae then those people usually don't report it to the credit bureaus so follow what I said above and provide a copy of those docs to the credit bureaus and see if they will list them (or not).

AUTO LOAN -- NO CREDIT CHECK!

Question: Credit Advisor / Guide is there such a thing?

My husband and I are planning on buying a house in September. We know what our credit scores are and we know that we have some choices to make on how we handle our finances in the next 6 months. We want to talk to someone who actually understands our credit scores and how various actions will effect them. We don't need a Credit Councelor, we're doing just fine in regards to debt. But we could use advice on what are the best steps to take to get the best rates in September. Anyone know any where I could look to find a person who can look at our Credit Report and give us objective advice on our best options.

Answer: Here is the best credit guide I have found. It talks a lot about when to pay off debt (i.e., to demonstrate that you can see things through), and just how much to keep open to show that you have the will-power not to use it all.

I like the fact that it's from a lender, not a broker or a "credit counselor." This is exactly how a lender will look at your Credit Report when approving you for a mortgage.

Is Your Credit Score Costing You a Fortune?