Foreclosure, Bankruptcy, and Short Sale on Credit Report
Credit Bad, How to Build Credit, Credit Score
Question submitted by Mike Lavios, Lake Oswego, OR
Question: How long will the following stay on a clients credit report? – Foreclosure, Personal bankruptcy, Business bankruptcy, Short Sale
Mike – here is your answer:
- Foreclosure – 7 years
- Chapter 7 BK – 10 years
- Chapter 13 BK – 7 years
But remember, you do not need a clean credit report to have a high credit score. The key is to reestablish your credit from the beginning, if you do that, your credit score will jump quickly. As I say often, if you reestablish your credit the right way, you will have a 720 Credit Score 7-8 years before the bankruptcy falls off your credit report.
Foreclosure, Bankruptcy, and Short Sale on Credit Report
Credit Bad, How to Build Credit, Credit Score
Hi
I am considering walking away from all my “unsecured credit card” debt….just stop paying. I have never been late EVER in the over 36 years I have been managing credit cards and mortages….in the last few years it has become increasingly difficult to manage my budget and still pay these cards….I have negotiated interest rates ranging from 2.99% fixed to 15.99% over the years…so the rates are better than the consolidation companies can negotiate-as I was told.
I have paid many years of interest–so they have gotten their money paid for eveything I spent by now and are just making a interest income from me now. I am 64 and own my own home. I have used up all my savings and HELOC trying to say afloat…but I have enough coming in from my own business that I can pay my electric my cable and internet for my business and still pay my mortgage (1st & 2nd), insurance, water billsand put a little into savings–all basic living expenses. My credit scores are recently 725, 715, 714….and have been that way for years… I am at a point…that I an wondering why I should care what my scores are?….I am tired of paying this game…if I save all the money I am now paying on my 8 cards…I coud save for an emergency and also pay down my Heloc more…..so I am just wondering if I get off this treadmill and walk away from the unsecured credit card debit…will all I have to deal with is lowsey credit scores and a bunch of calls and treatening letters?…but why should I care?-if I can get off this treadmill and bust loose from this credit game in which the creditors would have us just pay and pay…while the economy creates less and less income availability! I dont want to do a bankruptcy either–have consulted 5 different attys and I don’t need to do it with unsecured debt…it is my understanding that creditors of unsecured debt cannot force me to pay or take anything…is there anything I am not taking into consideration? I am keeping my house and all my main bills–just wanting to finally after 20+ years of trying (and consistently lowering my debt)…now think I cannot pay them off in my present lifetime with what I earn….so am thinking of turning in this game board …and finding a new game that supports me better!. The credit card companies have made WAY more than is fair on me–so they are in no way loosing out!
Hi
I am considering walking away from all my “unsecured credit card” debt….just stop paying. I have never been late EVER in the over 36 years I have been managing credit cards and mortages….in the last few years it has become increasingly difficult to manage my budget and still pay these cards….I have negotiated interest rates ranging from 2.99% fixed to 15.99% over the years…so the rates are better than the consolidation companies can negotiate-as I was told.
I have paid many years of interest–so they have gotten their money paid for eveything I spent by now and are just making a interest income from me now. I am 64 and own my own home. I have used up all my savings and HELOC trying to say afloat…but I have enough coming in from my own business that I can pay my electric my cable and internet for my business and still pay my mortgage (1st & 2nd), insurance, water billsand put a little into savings–all basic living expenses. My credit scores are recently 725, 715, 714….and have been that way for years… I am at a point…that I an wondering why I should care what my scores are?….I am tired of paying this game…if I save all the money I am now paying on my 8 cards…I coud save for an emergency and also pay down my Heloc more…..so I am just wondering if I get off this treadmill and walk away from the unsecured credit card debit…will all I have to deal with is lowsey credit scores and a bunch of calls and treatening letters?…but why should I care?-if I can get off this treadmill and bust loose from this credit game in which the creditors would have us just pay and pay…while the economy creates less and less income availability! I dont want to do a bankruptcy either–have consulted 5 different attys and I don’t need to do it with unsecured debt…it is my understanding that creditors of unsecured debt cannot force me to pay or take anything…is there anything I am not taking into consideration? I am keeping my house and all my main bills–just wanting to finally after 20+ years of trying (and consistently lowering my debt)…now think I cannot pay them off in my present lifetime with what I earn….so am thinking of turning in this game board …and finding a new game that supports me better!. The cerdit card companies have made WAY more than is fair on me–so they are in no way loosing out!
What about the “deed in leu of fore closure. It’ not a forclosure or short sale so their is nothing owed.
Thanks Jackie… same as a Foreclosure.
How about a short sale?
Thank you Brant. 7 years.