jtrois asked in Business & FinanceCredit · 1 decade ago

what would be my best choice to clear bad credit.?

what should i do? should i file a chapter 7 or 13?

6 Answers

  • 1 decade ago
    Favorite Answer

    given that I don't know your circumstances in full I can't be absolutely certain, however I work with people that have credit issues. hence, cha. 13 will only get rid of some of the interest that you pay to your current creditors but you will still end up with a monthly payment that can last for years.

    cha. 7, will eliminate your debt (with some exceptions).

    however both will appear on a credit report for 10 years, but only really negatively effect your credit score for the first few.

    all in all, it is my personal feeling that there is no point in cha. 13...it will decrease your credit score, give you another bill to pay, drag on for years, and you'll have to pay someone to do all of these wonderful things for you.

    Source(s): me....MBA...Loan officer...fabulous
  • 1 decade ago

    Do you own a house? If not then filing chapter 7 would be your best bet. I dont care what people say, bankruptcy was the best thing that I had ever done. I know it sounds crazy but after I filed and got all the debts discharged, my credit score went up drastically and improved so much within a 6 month period that I was able to re-establish my credit. Although it will stay on your report for about 7 to 10 years, as long as its discharged you can get into anything that you want. The key is that you have to become more responsible with your "new beginnings" so to speak, no more spending like a wild man/woman. Take it from me, I have learned how to limit my spending on the plastic and stick more with cash on hand. Good luck..

  • ?
    Lv 4
    4 years ago

    homes are massive economic commitments that are actually not liquid. i might artwork on paying off your student loans and cleansing up your previous debts. i might generally examine your credit and spot how extremely some issues enhance your status. the subject with taking a private loan in case you may get one with a poor credit is that the interest fee would be relatively extreme. be useful you get your self alright set up in the past buying a house.

  • Anonymous
    1 decade ago

    Neither, unless you absolutely have to. The best thing you can do is pay your bills. Get all items out of collections. Pay for your crap and stop overspending.

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  • Anonymous
    1 decade ago

    Fake your death and assume someone else's identity, preferably someone with better credit than you.

  • 1 decade ago


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