Posted on: 29th Jun, 2009 10:09 pm
I am over 20k in debt and own a crappy condo in a crappy city on top of a freeway that is now worth exactly half of what I paid for it. I am considering letting the bank take back the property and also filing for chapter 7 bk. I am getting married next year, I am wondering what to expect for my futuer. Will this affect my future husband? will I ever be able to buy another home or have good credit again? Will we be able to do all of our credit in his name for a couple years? sorry for all the questions, I am just so confused on what to do at this point.
hi taxgirl,
your filing bankruptcy will not effect your future husband in any way. your husband will be able to buy a property using his own credit. you will definitely be able to buy a house of your own and will be able to maintain a good credit. in order to get a fha loan, you will have to wait for 2 years and for conventional loan you'll have to wait for 4 years after discharge. once you file bankruptcy, start taking steps to improve your credit. you can check out the given page to know about improving your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
thanks
your filing bankruptcy will not effect your future husband in any way. your husband will be able to buy a property using his own credit. you will definitely be able to buy a house of your own and will be able to maintain a good credit. in order to get a fha loan, you will have to wait for 2 years and for conventional loan you'll have to wait for 4 years after discharge. once you file bankruptcy, start taking steps to improve your credit. you can check out the given page to know about improving your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
thanks
pros and cons of filing chapter 7 bankruptcy
here are some of the pros and cons of filing chapter 7 bankruptcy.
pros:
no personal liability: chapter 7 releases your personal liability towards debts. you receive a discharge order within 4 months of filing the petition.
exemptions: you can retain certain assets as per exemptions under chapter 7.
prevents legal actions: once you file chapter 7, it stops legal actions taken by your creditors. such actions can be lawsuits, judgments, foreclosure, repossession, wage garnishment and collections. as per chapter 7 bankruptcy laws, creditors shouldn't even make harassing calls demanding payments from debtors.
fresh financial start: since chapter 7 discharges your debts, you get the chance to organize and manage your finances better.
cons:
lose assets: you lose assets as they are sold off to pay your creditors/lenders.
retain property liens: chapter 7 does not remove property lien due to secured debts (mortgage or car loan). so, even if you get a discharge, you'll have to pay off the lien in order to save your property from foreclosure or repossession.
effect on credit score: your credit score drops down by 250 points or so when you file file chapter 7 bankruptcy. the bankruptcy remains on your credit report for about 10 years.
new credit/mortgage: it's difficult to qualify for new credit or mortgage after you file chapter 7 bankruptcy. if the market isn't doing well, no lender would offer you a mortgage even at higher rates of interest. it'll take at least 2 years to qualify for an fha loan and 4 years for a conventional mortgage at affordable rates of interest. check out a forum discussion on getting mortgage after bankruptcy.
here are some of the pros and cons of filing chapter 7 bankruptcy.
pros:
no personal liability: chapter 7 releases your personal liability towards debts. you receive a discharge order within 4 months of filing the petition.
exemptions: you can retain certain assets as per exemptions under chapter 7.
prevents legal actions: once you file chapter 7, it stops legal actions taken by your creditors. such actions can be lawsuits, judgments, foreclosure, repossession, wage garnishment and collections. as per chapter 7 bankruptcy laws, creditors shouldn't even make harassing calls demanding payments from debtors.
fresh financial start: since chapter 7 discharges your debts, you get the chance to organize and manage your finances better.
cons:
lose assets: you lose assets as they are sold off to pay your creditors/lenders.
retain property liens: chapter 7 does not remove property lien due to secured debts (mortgage or car loan). so, even if you get a discharge, you'll have to pay off the lien in order to save your property from foreclosure or repossession.
effect on credit score: your credit score drops down by 250 points or so when you file file chapter 7 bankruptcy. the bankruptcy remains on your credit report for about 10 years.
new credit/mortgage: it's difficult to qualify for new credit or mortgage after you file chapter 7 bankruptcy. if the market isn't doing well, no lender would offer you a mortgage even at higher rates of interest. it'll take at least 2 years to qualify for an fha loan and 4 years for a conventional mortgage at affordable rates of interest. check out a forum discussion on getting mortgage after bankruptcy.