Re-establishing credit after Ch7

Edwards Finance > Loans

Q. I'm almost certain that this question has been asked here before but I tried to Google it (like a good girl) and couldn't find the specifics I was asking for so here goes: I live in NC and after looking over the state laws concerning bankruptcy and sadly, I think we are considering Ch7. We plan on getting reaffirmation agreements for things like the car, house & furniture and this is sort of where my question rises. The car is a 3 year lease, say we file bankruptcy and keep the car and when the lease is up, how hard will it be for me to get another car when the time comes? Will my good payment history with the leasing co. be at all taken into consideration or will the fact that there is a bankruptcy negate all of that? Same for my house -- if in a few years we decide to sell (we may have to move because of my husband's job) Will we be ever be able to buy another one and if so after how long? Okay...one more question. Which would be better, filing jointly or separately? Almost all of the debt is in his name. I have really good credit (so does he except for all the CC debt) and only have a couple of small credit cards that are only in my name. My thinking is that we could still have credit cards in may name for *necessary* reasons only (leasing a car, emergencies etc.)

A. Almost all loans are granted based on a credit score. Your credit score will determine how likely or not you will be granted another loan. You can order your credit report and credit score (two separate items) from Equifax, TRW or Transunion for $$$. In some states you're eligible for a free credit report each year (but your score is not free). A perfect score is 800. So I guess whether or not you get a loan would be determined by how badly your score is affected by a chapter 7 and how much time afterwards you work to rebuild it. >Same for my house -- if in a few years we decide to sell (we may have >to move because of my husband's job) Will we be ever be able to buy >another one and if so after how long? See above. There is no definitive answer to "how long". Could be a year or two, could be 5+. My friend buys, fixes up, and resells houses. He was getting multiple house loans after 4 years and his score is back over 700. >Okay...one more question. Which would be better, filing jointly or >separately? Almost all of the debt is in his name. I have really >good credit (so does he except for all the CC debt) and only have a >couple of small credit cards that are only in my name. My thinking is >that we could still have credit cards in may name for *necessary* >reasons only (leasing a car, emergencies etc.) You'd need to ask an attorney about this. Probably separately if you have no debt to dispose of, but again, talk to a bankruptcy attorney. Most of them will give you a free consultation. In MA, our attorney cost us $800 flat rate, plus the $205 (approx) court filing fee.

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