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Chapter 7 Bankruptcy
This really is the death sentence. Going Chapter 7 Bankrupt will effectively seal your ability
to get any credit for at least 3 years, 7 years for A credit. This means that you are completely writing off your
debts with no intention of paying them in the future. Do not do this if you foresee any need for credit.
If on the other hand you own your home and are truly swamped to the point that you can't meet your mortgage you may need to
consider this remedy so you can clear the slate and focus on the most important obligation - your home.
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Chapter 13 Bankruptcy
The Chapter 13 Bankruptcy is in fact a renegotiation of your debts with the intention
of paying them all off in a reasonable timeframe. The day that you satisfy your Chap 13 obligations you will be
able to apply for credit. By immediately reestablishing credit lines and maintaining excellent payment a Chap
13 "survivor" could get a conforming credit card in as little as two years.
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Consumer Credit Counselling
CCCS as it is know in the finance industry is usually looked upon just like a Chapter 13 Bankruptcy
because you are formally, legally renegotiating your debts. Counsellors do not always make clients aware of this
which causes many a befuddled applicant to tell their loan officer, "I just wrapped all those debts up in Credit Counselling,
why would you decline my application?" The befuddled applicant was declined because the underwriter looked at
him like he was in the midst of a bankrupcty. Moreover while a client may make monthly payments to the Service,
the Service does not always pay the debtors on time. If you truly need a credit counsellor look for one that won't
actually restructure your debts. Do that on your own so you won't have anyone else to blame but yourself.
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