QUESTION
How bad will my credit be if I file bankruptcy on two unsecured loans?
Asked on Apr 09th, 2013 on Bankruptcy - Delaware
More details to this question:
Two credit card companies raised my interest rate from 11% to 18%. I am unable to pay after a job loss and divorce. How bad will my credit be if I file bankruptcy on two unsecured loans? I am still able to pay my mortgage and other credit cards. What would be my first step?
9 ANSWERS
You cannot file bankruptcy on one credit card and not the other. You must include them all.
Answered on Apr 30th, 2013 at 12:41 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Apr 10th, 2013 at 1:06 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Bankruptcy may hurt your credit score by as much as 100 points or more. However, your score will suffer very quickly if you don't or can't pay your creditors. Rebuilding your score after filing can be accomplished very quickly.
Answered on Apr 10th, 2013 at 12:28 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your first and last step would be to hire a bankruptcy practitioner. You clearly do not understand the bankruptcy process.
Answered on Apr 09th, 2013 at 9:21 PM
Deborah F. Bowinski
First of all, you cannot pick and choose which debts to include in a bankruptcy filing. When you file a bankruptcy case you MUST list ALL DEBTS that you owe. In some instances, like mortgage loans, you are able to continues long payments. In other instances it is completely up to the lender whether to allow you to keep the account open. Typically with credit card accounts the bank closes the accounts immediately upon receiving notice that the bankruptcy case was filed. If you are considering bankruptcy you should schedule a consultation with a bankruptcy attorney so you can learn a little more about the process and evaluate whether it is the right option for you.
Answered on Apr 09th, 2013 at 9:07 PM
You can't pick and chose what debt to include in your bankruptcy. Federal law requires you to list everyone you owe as well as everything you own. As to predicting how much of a loss your credit score will take, credit scoring is a proprietary formula and no one can say for sure. My best guess is 37%.
Answered on Apr 09th, 2013 at 2:17 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Consult with an attorney as to all other possible issues.
Answered on Apr 09th, 2013 at 2:16 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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How bad your credit will be depends on more facts than you have disclosed. Ultimately, if you are unable to pay the debts your credit will take a serious hit (if it hasn't already) - with or without bankruptcy.
Answered on Apr 09th, 2013 at 2:15 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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The same as if you filed on 10 debts. It will remain on your credit for 10 years. It doesn't make it better or worse the number of creditors you include.
Answered on Apr 09th, 2013 at 2:12 PM