Why...

[Primevci]

Why does it seem that someone that files a BK is better off then me trying to repair the credit and pay debt that is owed? examplemy brother filed bk and now he will be able to get a house this year.. I stick it out so i dont defualt on myloans and im worse off..

[deadbishop]

One reason is when you file a bk your debt is gone. Having no debt is good.
My scores before bk very bad! After I filed they went up cause my debt went from owing tons to zero. Then I got a few secured cards and two lines of credit. Now I have 8 cc a car loan and paying everything on time. Scores are in mid 600's and only discharged 10 months ago.

[Primevci]

That's awesome dude.. Just thinking I maybe should have done it a few years ago

[InvincibleSummer3]

Your brother may be able to buy a house, but how do you know he won't end up with higher interest, etc? The grass is not always greener when you look at someone's overall financial picture. Scores aren't everything.  And if something goes wrong, and he has financial troubles again - he's not going to be able to file bankruptcy for several years. That's sometimes attractive from a lender viewpoint. Who's a better credit risk than someone who is not able to legally discharge a debt? Not every lender feels that way, but there are those who do.

For every story about a person who seems to have gamed the system somehow, I promise you there are just as many who didn't see their bankruptcy as a "get out of jail free" card. You've written before about how focused you've been on saving up money for your down payment - that is awesome. You have actual money! Which beats having credit - credit is not the same thing as cash in hand. Credit can come & go; lenders can lower credit limits whenever they like. Your cash, though, isn't going anywhere. It'll pretty much be useful anytime you care to use it.

Keep your chin up.

[grimalkin]

OP, it may suck right now, but on the bright side you'll never have the permanent public BK record out there.  Sure, your credit may stink for up to 7 years, but after that, it's all forgotten.  On the other hand, a BK will come up with a simple PACER search or heck, even on Google.  I would hate for future employers to ever run across an old court document like a BK.

[guiness56]

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@grimalkin wrote:

OP, it may suck right now, but on the bright side you'll never have the permanent public BK record out there.  Sure, your credit may stink for up to 7 years, but after that, it's all forgotten.  On the other hand, a BK will come up with a simple PACER search or heck, even on Google.  I would hate for future employers to ever run across an old court document like a BK.

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There is absolutely no shame in filing for BK.

[Deltadog03]

Grimalkin......There is many things I could say in response to this, but I will take the high road.    There is NO shame in having to file BK, as Guiness said.  I was trying to clean my credit up, just like the OP, however when you loose 2 jobs in a tough economy it can get real.....real quick.....I filed because I wanted a fresh start, and thats what I got.  Its not as easy as you think after BK, YES my debt (that was dischargable) however the old accounts still remain and they show BAD just like anything else.  To the OP, hang in there......We are all in here to learn and help...

[VirtualCuriosity]

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@Primevci wrote:

Why does it seem that someone that files a BK is better off then me trying to repair the credit and pay debt that is owed? examplemy brother filed bk and now he will be able to get a house this year.. I stick it out so i dont defualt on myloans and im worse off..

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Welcome to the club.  But, regardless of the ease of burning everyone and possibly rebounding quicker, look in the mirror and see integrity.  Everyone has their own ideas and morals, yet some have no other choice.  It just is what it is. 

[deadbishop]

OP question as to WHY his brother's better off and able to get a house.
I explained its cause of no debt when your discharge your debt in a bk your scores go up.
For the record I was giving MY history to show what I got after my discharge vs if had debt I wouldn't have got.

For me bk was a fresh start and glad I did. But it's not for everyone.