Chapter 7 vs. Chapter 11 vs. Chapter 13
Before you decide on credit repair in Washington 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 Washington 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 Washington use a trusted credit repair companyCompanies that claim they can restore your credit and quickly erase debt are a dime a dozen. But beware! Many of these services will do little or nothing to improve your credit.
If you need to repair your credit or consolidate debt, you can arrange payment plans and improve your credit score yourself for little or no cost. Make sure you don’t get duped.
If you can’t pay your bills:
Contact a nonprofit credit counseling service in your area.
Contact your creditors immediately to arrange a payment plan.
Questions to ask credit repair companies:
How much do your services cost?
What do you offer that I can’t do myself?
What proof will you provide that you are negotiating with my creditors?
What are your cancellation and refund policies?
Are you in compliance with the Ohio Debt Adjusters Act?
Tips to improve your credit score:
Always pay on time.
Don’t take on new debt to pay old debt.
Keep balances at 30 percent or less of available credit.
Get your free credit report.
Correct mistakes on your credit report by notifying the appropriate credit reporting company in writing.
Don’t close old accounts; a longer credit history improves your score.
Demonstrate your ability to handle various terms and conditions of credit by having a good mix, including revolving loans (such as credit cards), installment loans (such as auto loans), and mortgage loans (such as home loans).
Apply for and open new lines of credit only when you need them.
Credit counseling: How to avoid future problemsCan you remove a bankruptcy on your own?
Like all negative item disputes, it’s entirely possible to complete the process on your own; however, it’s a lengthy and tedious process that doesn’t guarantee results. You can dispute the bankruptcy either by stating an inaccuracy of the information included in your credit report or by asking the credit bureau how it verified your bankruptcy. As with any dispute, they must respond to your procedural request letter within 30 days.
In most cases, they’ll say that they verified it with the courts, but this is unlikely. You must then contact the court to ask how they verified your bankruptcy. If they respond that they never verified it, you should get that statement in writing, send it to the credit bureau, and ask to have the bankruptcy removed. This method isn’t guaranteed but is might be worth trying. Otherwise, enlist the help of a credit repair company to navigate the process for you.