If you file Chapter 7 or Chapter 13; how can that affect you overall. I know it's on your credit for 10 yrs?

Question

Have you ever filed and what was the aftermath? Was it hard to get a mortage? Purchasing a car? Etc

Answer 1

You can't get loans or credit cards with a bankruptcy on your record....You could get financing for a car or house within a year or two because with those you have some collateral (the car or the house) and if you mess up paying, they'll take both from you.....However, with the new bankruptcy laws, you must go through credit counseling and a debt free class (with a test and all!) both of which cost some money....but it is a requirement before you can file.....and these things really are helpful in figuring out how to live on a budget and live within your means...I've been there, done that.....

Answer 2

Chapter 7 discharges after you do the paperwork with an attorney, credit counseling, go to court, discharge about 90 days later. Chapter 13, payment plan to the courts, takes about 3 or 5 years to process, and slowly build credit.  I filed last year, discharged in Feb 2008, already have financed a 08 Harley Davidson motorcycle, one credit card and keep my balance low and pay on time, even early. As far as a mortgage, some people, depending on their income have purchased homes as soon as 3 years later. It depends on how you treat your credit after the discharge. If you work hard to re-built, it does take work and a lot of self control, you can come out of it and re-establish good credit. A chapter 13, leaves you with minimal spending while in the payment plans, but saves your secured debts and allows you to pay back the debts. I've never been fond of the chapter 13 as it does leave you with little money and you have to get court approved financing on everything if you should need it thru the courts before you can do anything.