Repair Credit Score

Archive for November, 2008

Question: Would negative bank checking account balance lower Credit Score?

My checking account balance accidentally went below zero, and I ended up incurring an overdraft fee. Would this hurt my Credit Score in any way?

Answer: No. The only way your account being negative can affect your credit is if you were to allow it to be forcibly closed with monies owed and go into collections or charge off status.

Banks do not report to credit bureaus. They do report to ChexSystems but again that's only if the account is in collections or charged off.

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Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy, continued

Bankruptcy situation 5: How would my Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy work if I have valuable real estate property that would not be exempt from the bankruptcy estate?

Chapter 7 Bankruptcy:

If you have valuable real estate property and you file for a Chapter 7 Bankruptcy, you may lose the real estate property unless you can either arrange to swap the real estate property with exempt property of a similar value or pay the bankruptcy trustee the fair market value of the non exempt real estate property.

Chapter 13 Bankruptcy:

If you file a Chapter 13 Bankruptcy, you will not lose the real estate property provided that you comply with your repayment plan according to the Chapter 13 Bankruptcy.

Bankruptcy situation 6: How would my Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy work if I owe back taxes to the IRS?

Chapter 7 Bankruptcy:

If you owe back taxes to the IRS, the IRS will most likely not let you file a Chapter 7 Bankruptcy. So, if you are in this situation, you cannot file a Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy:

Similarly, the dischargeability is limited in the Chapter 13 Bankruptcy case too.

Bankruptcy situation 7: How would my Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy work if my debts are from illegal activities?

If you owe debts resulting from activities such as the ones listed below, then the debts are usually not discharged.

• larceny
• breach of trust
• embezzlement
• fraud
• willful and malicious injury to another or property

Chapter 7 Bankruptcy:

These debts are not discharged under a chapter 7 bankruptcy.

Chapter 13 Bankruptcy:

These debts are not discharged under a Chapter 13 bankruptcy either.

Question: 100% LTV financing?

I know the sub prime market just had a massive fall out that is still going on, but does anybody know of any lenders still willing to do 100% LTV with a 44% debt to income ratio with a 700 plus Credit Score and adequate assets. It will be on an investment purchase as well

Answer: Not on an investment purchase. Generally speaking, when investing in rental real estate, downpayments are required. You can search around more, but my experience is that you don't get 100% LTV unless you owner-occupy one unit.

Credit Used to Deny Blacks presented by 1KBM/TheBMCC2010