I agree the rules will never be straight forward and simple as there is a ton of complexity in our system. However there are general guidelines we should be able to follow that will lead us to personal financial success. If you follow those general guidelines, you should in general be able to stay out of financial trouble and bankruptcy.

Cents wrote: I don't think there can be a solid answer to anything credit related. It would be so nice if we had some hard and fast rules about how credit works, but that's probably wishful thinking. If they simplified the system, I'd be willing to bet that a lot of people would have better credit because it would be easier for them to understand what they need to do.

I agree 100% but the cynical streak in me doubts that will ever happen. Most powerful industries are set up in such a way that the lay person finds them difficult to navigate. That's how they retain so much of their power.

I don't think there can be a solid answer to anything credit related. It would be so nice if we had some hard and fast rules about how credit works, but that's probably wishful thinking. If they simplified the system, I'd be willing to bet that a lot of people would have better credit because it would be easier for them to understand what they need to do.

Good question?! I have read where that is suppose to be the truth and then I read where it was affecting a person's credit just as harshly as the BK 7. My truth, I really don't know. One benefit is that it should drop from the credit report after seven years but then I have read stories where it went longer ... so I don't have a solid answer for the question.

I think Chapter 11 is the one businesses file.

Wanderer, it sounds like Chapter 13 may not be as detrimental to one's credit since some of the debt is being repaid. Would say that is correct?

Chapter 7 is where virtually everything is eliminated. Chapter 13 is where a plan to pay down the debt over time is worked out (may not pay the full amount owed but an amount that is agreed upon by the parties to the BK).

Wanderer wrote: Chapter 7 Bankruptcy takes 10 years to clear off the credit reports Chapter 13 takes 7 years.

Can you explain the difference between Chapter 13 and 7? I thought one was geared more towards businesses. If not, why would anyone file Chapter 7 because it takes longer to clear?

Chapter 7 Bankruptcy takes 10 years to clear off the credit reports Chapter 13 takes 7 years.

I didn't know any of this either. Here I thought that keeping some items and paying for them would help build your credit back up. I think I remember reading that it takes 7 years to clear a bankruptcy off your credit report.

This definitely is some handy information. I had no idea that things included in the bankruptcy wouldn't continue to report to the credit agencies. I thought if it wasn't included, it would just continue on as normal.

I'm glad I came across this thread. My brother-in-law is in the process of filing for bankruptcy (chapter 13, I think) and somehow I doubt he knows he'll need to sign a reaffirmation agreement in order to have his car payments and mortgage payments continue to reflect on his credit report.

This is some really great information Sar1954. Sometimes I think that things purposely don't get explained to people to make it that much harder on them. Thankfully, I have never been in this situation, but I have a few friends that have and they didn't keep their house they only kept their vehicles. It has also taken them quite a while to build their credit back up so that they are finally able to apply for a loan to get a house. How long does it normally take to get your credit back after you have filed bankruptcy?

If a reaffirmation agreement is NOT signed and you are keeping a home or vehicle, the loan company will cease to send monthly billing statements. So if you are late on a payment then the loan company may proceed under state law to either reposes the vehicle or foreclose on the home. Further, the loan company will not update the credit bureau to give you credit for the monthly payments you are making. http://www.bankruptcylawnetwork.com/bankruptcy-reaffirmation-agreement-to-sign-or-not-to-sign-that-is-the-question/

The above information was taken from bankruptcylawnetwork.com; I am also a paralegal and am very knowledgeable in this area of law, through work experience and my personal experiences.

When you decided to keep your car and house you should have signed a reaffirmation agreement with both companies, if your car loan is through the same bank as your mortgage there would still be two separate agreements for each. If you have signed this agreement with the company(ies), contact them and ask why they haven’t started to pick back up on reporting your timely payments. Once you filed the BK, you had what is called in automatic stay, an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, 11 U.S.C.§ 362. Once the stay is in place they can no longer follow normal collection procedures and make any updates to your credit report unless a reaffirmation agreement is signed. This should have been explained by your lawyer that assisted you in filing your bankruptcy.

Hope this helps, best of luck to you.

I filed for a bankruptcy in January of 2010 and was allowed to keep my house and car. Unfortunately they have both been taken off of my credit report which doesn't seem to help my credit very much.

Is there a way that I can get them put back on? My house note has never been late in five years and The car was paid off two months after the bankruptcy. I just got overwhelmed with the other bills.

Thanx in advance