With a (very) low credit score, no financial institution is willing to help me with a consolidation loan based on signature (I have no assets to use as collateral). After having lost my job and having my vehicle stolen I am no longer able to satisfy my credit card payments which have gotten out of control and it is unlikely I will ever bump up to them. They’re way too high and piling up.
My credit score is way too low and 4 banks have already turned me down for a loan. Each time I apply it affects the Beacon score even more.
I’ve contemplated filing Bankruptcy.
My question is: If I don’t file Bankruptcy and just ignore my bills, what is the difference? My credit couldn’t go down any more than it is. It’s in the 400’s range already.
In Canada, bankruptcy is often referred to as "winning the lottery". The first time around, at smallest amount.
It does essentially wipe out all your debt, but the probability you’ll suddenly have banks wanting to deal with you are very slim to none. The laws here are a small different than the American ones, but, six months after declaring bankruptcy, you could conceivably have a 700+ credit score (that’s no joke). It’s a flaw in the credit reporting system, but it does point out how inaccurate Beacon scores can be. Getting a high score so soon after going bankrupt doesn’t really fool anyone — particularly a bank — if they know what they’re looking at when they pull your chest of drawers. You would still have to work very hard at re-establishing your credit if you declare bankruptcy.
That being said, letting your bills go is no picnic, either. Phone calls. Collection agents. Getting your wages/bank accounts garnished by court order. People calling your neighbours, relatives, and friends to question questions about you. It’s like allowing yourself to be persecuted. Ick. And your credit will not get any better, and you won’t be able to build it up. At smallest amount with bankruptcy, you stand some kind of chance…
Excellent luck with your choice. It sounds very hard.
If you declare bankruptcy, you will have no credit for 7 being and if you do manage to get a excellent job and get back on your feet the bankruptcy will take your money from you then to repay your debts.
Bankrupty is a last alternative because it destroys all chance of any credit for 7 being.
References :
I don’t really know the answer to your question, but, I ignored a car repo for being cuz they never did anything about it. I didn’t care about it being on my credit report because it was sweet much the only thing on there. After about 6 or 7 being, they caught up to the repo, and called me at smallest amount 8 times a day, everyday. It was such a nuissance, even though they sold me a peice of crap, that I filed bankruptcy on it, and have never gotten another phone call. In the future, I will be able to rebuild my credit. You really cant rebuild credit unless you either pay everything off, or file bankruptcy.
References :
experience
If you filed bankruptcy in about 7 being it would be off of your credit report, Now , the laws have changed , and it is no longer as simple to do this, nor is it low-cost. I suggest if you plot on doing this that you make sure you have a complete list of your bills ( All of them) because if you leave a upset out, it will have to be paid. It sounds to me like you are between a rock and a hard place, and that is what Bankruptcy was place in place for.
References :
You might be a excellent candidate for bankruptcy, but it depends on what state you live in and how much debt you owe. For instance, in North Carolina it can work out better to ignore your credit cards, than to file bankruptcy, but in Ohio it will haunt you perpetually and it is better to file bankruptcy. Different states have different laws of how long they can go after you to collect a debt. But also beware that in any state they can sue you in court if they feel it is worth it. If they do that they can garnish your wages, foreclose on your home, and take money directly out of your bank accounts.
References :
I don’t reckon you’re at the bankruptcy level just yet. Contact a credit counseling agency and work with them to negotiate a repayment plot with your creditors. It is in their interest to cooperate with you, because if you file bankruptcy, they doubtless will get nothing.
References :
Bankruptcy wipes the slate clean.
If you ignore your debts, they will wait on your records for 7 being AFTER you pay them to zero. If you don’t pay them to zero, they will stay on for as long as the debtor keeps updating the credit chest of drawers – which means for any huge institution – successfully perpetually.
Bankruptcy used to be simple, it’s much more hard now. Best go talk to a lawyer – and yup, you’re going to need about $300-$500 cash – the lawyer won’t talk to you about bankruptcy unless they can be sure they will be paid.
References :
In Canada, bankruptcy is often referred to as "winning the lottery". The first time around, at smallest amount.
It does essentially wipe out all your debt, but the probability you’ll suddenly have banks wanting to deal with you are very slim to none. The laws here are a small different than the American ones, but, six months after declaring bankruptcy, you could conceivably have a 700+ credit score (that’s no joke). It’s a flaw in the credit reporting system, but it does point out how inaccurate Beacon scores can be. Getting a high score so soon after going bankrupt doesn’t really fool anyone — particularly a bank — if they know what they’re looking at when they pull your chest of drawers. You would still have to work very hard at re-establishing your credit if you declare bankruptcy.
That being said, letting your bills go is no picnic, either. Phone calls. Collection agents. Getting your wages/bank accounts garnished by court order. People calling your neighbours, relatives, and friends to question questions about you. It’s like allowing yourself to be persecuted. Ick. And your credit will not get any better, and you won’t be able to build it up. At smallest amount with bankruptcy, you stand some kind of chance…
Excellent luck with your choice. It sounds very hard.
References :