Considering filing bankruptcy....

[jerzigurl77]

What is the name of your state? NJ

I am considering filing for bankruptcy and would like to know the difference between chapter 13 & 7. Also, how does filing effect your credit? Right now, I rent - but am trying to purchase a home in 05. Will filing prevent me from purchasing a home? Will it destroy my credit?

I am considering it because I have past due balances on my credit report from my previous marriage. Bill collectors call every day and it seems like faithfully, once every other month, someone is threatening court actions for these bills. I'm trying everything I can to pay them a little at a time - but I can only make so much money in a week.....

 

[Ladynred]

I suggest you read some more on this site's FAQ as well as a few others.

Here's a link to some excellent information that will answer your questions on the 2 chapters:

http://www.thebankruptcysite.com

There's a good FAQ on this lawyer's site:
http://www.detroitbankruptcylawyer.com/faq.html

There's a very good timeline here:
http://www.doney.net/timeline.htm

Bankruptcy will affect your credit. How badly it hits depends on the state of your credit right now. Length of credit history and number of accounts listed in good standing makes a difference too.

The bankruptcy itself will stay on your CR for 10 years, but its impact lessens as you rebuild credit. A house in 2005, while not out of the question, may be a bit optimistic if you file this year. FHA, after 2 years of perfectly clean credit post discharge, will probably be your best bet.