Repair Credit Score

Posts Tagged ‘Bankruptcy’

Question: How can I repair my credit rating after filing bankruptcy?

How can I repair the damage? Is there a way to improve my credit rating faster? I filed bankruptcy almost 2 yrs. ago.

Answer: Wasn't this explained to you by anybody when you filed bankruptcy? You screwed several creditors out of thousands and thousands of dollars. Your credit will now be in the dumps for from 7-10 years since you filed. Congratulations.

Credit Repair After Bankruptcy!

Bankruptcy (continues...)

It is now harder to file bankruptcy

Recently there has been an effort by bankruptcy judges to be harder on people who are going bankrupt since in the recent past there have been many abuses of the bankruptcy system. It is also important to know that if you believe you are going to go bankrupt you should NOT go and max out all of your credit cards right before you do so. The court will see this as an abuse and may not allow you to include those debts in your bankruptcy.

New Bankruptcy Law

A new bankruptcy law went into affect in October 2005 that makes it more difficult to wipe out all of your debt by filing bankruptcy. In order to file bankruptcy, you must go for credit counseling and budget analysis in the 180 days before filing bankruptcy.

Qualifying for Chapter 7 Bankruptcy

To qualify for Chapter 7 Bankruptcy your income must be below the median income in your state for a family of your size or you have to pass a means test. The means test for bankruptcy is that if you can pay $6000 over five years of $100 a month towards your debt, you must file Chapter 13 only. You have to pay the full amount of your car loan regardless of the condition of the car. Filing fees for Chapter 7 have increased, but fees for Chapter 13 have decreased.

Bankruptcy (continues...)

What does it mean to go bankrupt?

When you go bankrupt (when you file for bankruptcy), all of your assets and debts come under the control of the bankruptcy court. It is important to understand that there are some assets that are called exempt assets in bankruptcy cases.

What are exempt assets from bankruptcies?

Examples of exempt assets from bankruptcies are:

• your clothing,
• food,
• books,
• personal belongings,
• furniture,
• some cash, and
• your wedding ring

These exempt assets from bankruptcies cannot be taken away from you. Other things such as your car and some real estate, especially your home, have additional protections. The law about what is considered exempt differs by state, but in general you are permitted to keep things you require for daily living.

What are non exempt assets from bankruptcies?

Your nonexempt assets from bankruptcies are those that the court can divide up among your creditors. These non exempt assets from bankruptcies include:

• investments,
• large amounts of cash, and
• valuable items you own.