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David M. Siegel & Associates
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Will it ruin my wife’s credit score if I file bankruptcy and not her?

Interviewer: I’ve had people who were clearly not telling me the whole situation in those situations.  Dave I know we don’t have a whole lot of time.  Let me ask you one more very important – it’s a viewer question it’s from Larry in Joliet and it’s a common question.  He says, will it ruin my wife’s credit score if I file bankruptcy and not her?

David Siegel: It will not.  What happens is if it’s his debt alone, she’s not part of it, he would be filing under his social security number.  All of his creditors would be listed.  He would have to appear.  Her credit would not be affected.  The only exception would be if they had some joint debt and he files a bankruptcy and she doesn’t.  Because now the creditor can pursue her.

Interviewer: But she’s still on the hook, but that’s not necessarily going to affect her credit if she pays for it.

David Siegel: There may be a line item that says someone else filed a bankruptcy on this debt, which in this case the wife can explain it wasn’t me, it’s not mu social, I’m paying it for it.  So there might be a slight credit hit, but it could be explained away to a lender or any other person.

http://davidmsiegel.com
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After a Bankruptcy, Is It True, I’m Never Going to Get Credit Again?

Interviewer: Dave, after you do a bankruptcy a lot of people are under the impression that’s the kind of – that’s the death blow.  I’m never going to get credit again.  Is it true?

David Siegel: No it’s not true at all.  It’s a common concern, that’s true, but it’s not true that there will be no more credit.  In fact, debtors are getting offers for credit immediately upon filing, because certain lenders and credit card issuers are sending solicitations to the filing list.  I’m talking about auto lenders, certain credit card that have high interest rates and annual fees, and different other entities that want to jump on this type of market for a couple of reasons.  First, it’s going to profitable for them, they’re going to be able to take advantage of people’s desire for credit, and their willingness to pay up for it.  Two, the lender understands that the debtor cannot file a Chapter 7 bankruptcy again for the next eight years.

Interviewer: So that makes them a good bet then.

David Siegel: Very good bet, because in the worst case scenario they can collect upon that debtor.  But what they really hope for is that the debtor pays the annual fee, manages the credit to the point where they’re paying high interest rates, and the credit card traps starts up once again.  So I tell clients all the time don’t be concerned about credit, don’t be concerned about your credit score, there is life after bankruptcy.  A pretty good life in that you’ve wiped out your debt, you’re going to get offers again.  Be cautious, be careful, don’t jump into the same bad habits that led you into bankruptcy in the first place.  I want to see clients get out of debt and not come back to me every eight years.  Unfortunately, though there are some that do come back every eight years, the mark the date on their calendar, they know when they can file, and they’re doing what got them in trouble in the first place and it’s a shame.

http://davidmsiegel.com
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In Anticipation Of Your Meeting Before The Bankruptcy Trustee #Law  
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It's Difficult To Borrow Your Way Out Of Debt
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