credit score

What is wrong with Bankruptcy

Hello, New to this great blog. I’ve been trying to decide whether or not to file bankruptcy for the past 2yrs and in this time my credit did not improve. I am a single mom, was a victim of a crime, put on disability for 3yrs and just now getting back into the work force. I even heard Suze Orman say, sometimes bankruptcy is the best for some to become solvent again. My FICO score is less than anyone could imagine and actually it would be higher if I filed bankruptcy.

I deserve a fresh start and yes, I was paying on my debt before the unfortunate circumstances in my life. I’ve also consulted with people who have filed bankruptcy and they said, it was the best thing for them. I figure for the past 3yrs I have paid everything with cash. I have no desire to obtain any credit cards in the future.

Only considering a home in about 2yrs. I’ve spoken to lenders who have obtained financing for people fresh out of bankruptcy. They said, creditors will finance someone fresh out of bankruptcy quicker as opposed to someone who has horrible credit. Because they know you cannot file bankruptcy again.

So I’m truly trying to find reasoning as to what is wrong with it. I think somewhere or some how our society has placed a sense of shame on those who sincerely require relief from their debt, especially under special circumstances.

You can get a mortgage with a bankruptcy HOWEVER you need to have 20% minimum as a down payment and your interest rate will be much higher.

Like I said, I’m only about paying cash for everything necessary. Actually the lender is a relative of mine and no the people he has dealt with did not have 20% down, but I remember he said, they negotiated with the seller and I think many of them were first time home buyers and received addt’l asistance. So that’s not necessary true. I am so much more comfortable in my life and more at piece with out the credit delimmas.

Sometimes bankruptcy is the only option, usually when the debts are stressing out the family and causing marital problems, or health related problems from the stress.

I doubt you “deserve” a fresh start. What you do deserve is a chance to manage your money and keep it under control, you also deserve the opportunity to repay debts caused by circumstances beyond your control.

You might want to carefully rebuild your credit history with one card at a low limit ($1000) you pay off each and every month. This will help your credit history recover from any past problems and improve your FICO score. With poor credit it is almost impossible to get a mortgage or a loan, even though there still are services offering installment loans for customers even with bad credit. Still you do not want your credit to be low, don’t you?

Whatever you do, be careful and you will be able to make the most of the opportunity declaring bankruptcy presents you with.

Wow, interesting how you don’t think all those things as an option to bankruptcy didn’t apply to me. Let me see, family stress, divorce and definitely health related. Where do I fit in that those things did not pertain to me?

But, aside from that..I’m doing what I need to do for me and my two kids. No one can put themselves in someone else’s shoes. I was only giving my opinion about different situations.

Need to raise credit score

I am a student and have recently completed a debt management program where I paid off all my credit cards which are now closed. I have $4000 in student loans that are deferred until I graduate in December 2007. My current credit score is 573. I am trying to figure out how to raise my credit score without aquiring new debt. I was told that if I put myself as a co-signer on my parents credit card that will help raise my credit score. Is that a good idea and if not what are my options. thank you for your help.

Start a savings account, pay your essentials on time, and don’t piggyback on your parents accounts. In time your credit score will be good.

Also, you can just ask your parents to put you on as an authorized user without actually giving you the card. You don’t need to use the card and it will help your score. When my son is in high school, we’ll add his name as a user so he has the good credit but won’t have to open accounts to achieve this.

This might be a bit off topic but now going through all my mother’s accounts, etc since she passed away, I’d strongly recommend everyone putting their children on their accounts AND making a list of what accounts you have open. I’m getting these damn bills to my mom and I couldn’t tell you if they are legit or not.

Any bills like credit cards and you’re not on the account, write to them enclosing a copy of the death certificate and tell them she has died.

I disagree with have people put their children on their accounts. I worked in management at a large bank as well as a large credit union for 25 years and was involved in many, many cases of adult children running up large bills on their parents accounts.

If your mother has passed away, and there are not funds in the estate to cover her debts, contact the creditor by phone first. Find out where you need to send a copy of her death certificate. They will probably want to have an original copy. You can also contact each of the credit reporting companies and there is a special code on the credit files so companies will know that she has passed.

If an adult child is on the accounts then they are also responsible for that debt. Often times seniors can run up large amounts of debt also and you would not want to be saddled with that responsibility in addition to mourning your loss.

  • First, since you worked in management at a large bank, you are of the EVIL EMPIRE in my opinion. I’ve banked for 29 years with Wells Fargo and they won’t refinance my house or do a thing for me!!
  • Secondly, I’m not talking about credit card accounts. I’m talking about savings and checking accounts. I had to wait several months to get those funds to pay the exorbitant funeral costs.
  • Finally, I’m not going to send anyone an original death certificate who doesn’t ask for one. My mom had very little and if the credit card companies want to waste their time suing a dead person that’s their problem – not mine