Bankruptcy and the Impacts on Consumer Credit Reports and Credit History

Aug. 28, 2010 - PRLog -- Before filing bankruptcy the person should go for counseling within 180 days. The counseling done by the consumer is not a debt management plan in real. Generally it is known DMP that is core capability of bankruptcy credit counseling agencies. This action would be filed through the court and would finally show up on a consumer’s three credit reports. This is still not possible to get an impact on the consumer’s credit ratings.

This circumstance occurs when a bank finds the credit payment not done successively for 3 months. They take ownership of the house and commence the process of selling it or putting it on auction. Generally the banks depress foreclosure as they lose more money on the asset. But you become liable to pay high interest rate on every loan you apply following this condition, so creditors have a brighter chance of making profit. So if you are planning to apply for a home loan, you would only pay less interest rate than some one who does not have foreclosure on his the past. This sure is high but does not stop you from buying a house or applying for more loans.  http://www.bankruptcyonly.com/apply-bankruptcy-applicatio...

A precise foreclosure item stays on your report for 7 years and cannot be removed before this time. You need to raise a request with the credit coverage agency to remove this item from the report. Send a letter to the credit reporting bureau to dispute the existence of this item beyond 7 years, along with the required evidences. A consistent credit card payment can also reduce the effect of unenthusiastic items on the credit report and draw the attention of lenders to your credit worthiness. One of the toughest ways is to bargaining with the original lender to wash out this item from your report, but people try out this as well, through compromise or shocking advertising.
Chapter 7 Bankruptcy: http://www.bankruptcyonly.com/chapter-7-bankruptcy.php

A Chapter 7 bankruptcy would stay on your credit record for not more than 10 years from the date you filed. The accounts which are released as part of the bankruptcy would be removed not later than 7 years than their act ends. That’s the reason; the accounts included in Chapter 7 bankruptcy would be long gone through the time the bankruptcy filing is alienated.
Chapter 13 bankruptcy:

A Chapter 13 bankruptcy would remain in records until you go for the discharge procedures. A Chapter 13 bankruptcy would stay on your credit record not more than 7 years from the date of release or not more than 10 years from the date you filed only if it has not been discharged. It may take up to 5 years for the discharge to occur.

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