Credit Repair Tips
Bankruptcy and Credit Repair
What is
bankruptcy? 
Bankruptcy is an individual's legally declared inability to pay
back debt owed to creditors. There are several different types of bankruptcies.
Most are voluntary where the individual files themselves because they are no
longer able to pay back debts that they owe. Another type is involuntary
bankruptcy where the creditors file a petition against the debtor to try and
receive some of the money owed to them.
What are the different types of bankruptcies?
There are six types of bankruptcies in United States law and
they are broken into six different chapters (7, 9, 11, 12, 13, and 15). The
most common chapters filed are chapters 7 & 13. Almost 65% of all
bankruptcies filed are chapter 7.
What is the outcome of a bankruptcy?
In most cases, filing for bankruptcy will stop creditors from
calling, at least until all your debts are sorted out in accordance with the
law. Most times filing for bankruptcy can relieve an individual from
temporarily getting their
home foreclosed, getting wages garnished and getting
automobiles repossessed. Chapter 7 bankruptcy is the most common and it
allows you to discharge most of your debts with your creditors. However, you
have to liquidate your assets to be auctioned off. Some things you normally are
allowed to keep are: your primary residence, car, clothing, work related tools,
and basically necessities. Chapter 13 is basically a court organized payment
plan and usually does not require you to liquidate your assets.
How does bankruptcy affect my credit and credit score?
Bankruptcy does not look very favorable on your credit report
and should be considered a last resort for overcoming your debt. In most
situations, bankruptcy will damage your credit rating so severely that you may
not be get approval for credit for many years. It is one of the few items that
will stay on your credit report for 10 years. All other items such as
late payments and delinquent accounts stay on your credit report for
only 7 years. Having a bankruptcy on your credit report for 10 years will most
often than not prove to be a severe burden for most people. The severity of the
damage a bankruptcy does to your credit score is right up there with
foreclosure.
How we can help you
CreditLawGroup.com provides low cost
legal representation in disputing inaccurate, incorrect or unverifiable
information contained on credit reports from the three major credit bureaus,
Equifax®, Experian® and TransUnion® and their affiliates. You can monitor your
progress online, as well as speak to your Paralegal whenever needed by phone or
email. We have excellent customer service, and are always there to meet your
needs! Speak to a credit repair analyst today!
Click here
to find out more regarding our
credit repair services.
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