Chapter 7 vs. Chapter 11 vs. Chapter 13
Before you decide on credit repair in Boise you may first need to decide if you should file for bankruptcy in CR or not ? Chapter 7 is the fastest. In many cases, this type of bankruptcy case can be completed in a few months. Chapter 13 cases, on the other hand, cannot exceed five years but usually last about that long. There is no time limit on Chapter 11 plans. It is an essential strategy to repair credit.
Both Chapter 13 and Chapter 11 may allow you to keep certain assets you may lose under Chapter 7. For example, if you own a recreational boat without debt, you may have to surrender that in a straight bankruptcy, but you may be able to keep it if you pay the trustee the value of the boat in your Chapter 13 plan.
Both Chapter 11 and Chapter 13 may offer more help with Boise and mortgages. In Chapter 7, if you are behind on these payments and can’t catch up, you may wind up losing that property. Under Chapter 13, you may be able to catch up on those past due amounts over time. In some situations, homeowners can wipe out a second mortgage on an underwater home or negotiate a modification of their primary mortgage by filing for this type of bankruptcy. Chapter 11 may be especially helpful to small business owners or real estate investors with multiple properties by allowing them to restructure their debts or catch up on payments that are behind. Credit counseling can help with this.
Chapter 7 is generally cheaper than Chapters 13 or 11. With the former, you must pay your attorney upfront. With the latter, you may be able to pay part of your fee over time as part of your plan. Chapter 11 is generally the most expensive due to the higher filing fees and cost of the legal work involved.
In Boise use a trusted credit repair company1. Check your credit report for inaccuracies on the bankruptcy entry
In this step you’ll need a copy of all 3 of your credit reports. This is where having a credit monitoring service comes in handy. The first thing you’ll want to do is look over the bankruptcy entry on your credit reports very closely. What you’re looking for is anything that’s inaccurate. If you find inaccuracies, then promptly dispute the bankruptcy entry with the credit bureaus.
The best case scenario is that they’ll be unable to verify the bankruptcy and remove it from your credit report. This is unlikely if it’s a recent bankruptcy. Nonetheless, if it happens, then great, you can skip the other steps. If the bankruptcy is verified by the credit bureaus continue to the next step.
2. Send a procedural request letter to the credit bureaus
If the bankruptcy is verified by the credit bureaus, you will next need to send them a procedural request letter asking them who they verified the bankruptcy with. The best way to write a procedural request letter is to use my sample letter here.
More than likely the credit bureaus will respond and claim that they verified it with the courts. This is more than likely not true, because in most cases it’s my understanding that the courts do not verify bankruptcies for the credit bureaus.
3. Ask the specified courts how they verified the bankruptcy
Next, as you might have guessed, you will need to contact the courts that were specified by the credit bureaus. Ask them how they went about verifying the bankruptcy. They will probably say they didn’t verify anything. Ask for that statement in writing. After you receive the letter, mail it to the credit bureaus and demand that they immediately remove the bankruptcy as they knowingly provided false information and therefore are in violation of the Fair Credit Reporting Act. If all goes well, the bankruptcy will be removed.
Again, this process can be extremely difficult and time consuming, and there is no guarantee that it will even work. The nonetheless, it might be worth a try if you’re up for it.
Four ways bankrupcy could help youCredit counseling is the most complete solution, using various resources to help a consumer solve their money problems. It also requires the most work from the consumer and does not promise quick relief. Tools include budgeting, educational programs, counselors and a personalized plan. Credit counseling may, but does not always, lead to a Debt Management Plan where a consumer pays money into an account and the agency pays their debts from that account.
Consumers can find a list of government approved credit-counseling agencies in the United States at www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111.
Debt relief or settlement companies say they can reach out to one’s creditors and try to get them to lower a consumer’s balance, interest rates or fees so they pay less. Consumers can also try to do this themselves to avoid the fees that a company like this will charge them.
Debt consolidation companies offer consumers loans to pay off one’s debts in one lump sum. The low interest rates are tempting, but once a consumer goes through the application process they may find more fees. They may also be able to consolidate and pay off their debt through a second mortgage or home equity line of credit, but be very careful. As consumers are putting their home up as collateral, if they cannot make their payments, they could lose it.
Credit repair companies promise to clean up one’s credit report for a fee, but the chances they can do anything the consumer could not do on their own are slim. Consumers have the right to correct inaccurate information in their file, but nobody can remove accurate negative information. Only time and steady payments will repair one’s credit.