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TIPS ON BANKRUPTCYHOW TO FILE BANKRUPTCY SO NO ONE KNOWS A tactic you can use to decrease the chance of your bankruptcy being discovered is to file in a state other than where you live. You can do this by hypothetically "moving in" with a friend or relative who lives in another state. Typically you must reside in a court's jurisdiction for 180 days to file a petition in that jurisdiction. But, it is a grey area that will not likely be challenged. Keep in mind, you will have to attend court and receive your mail at an address in that court's jurisdiction. This maneuver will decrease the chances of your bankruptcy becoming public where you live. HOW TO HAVE CREDIT THE DAY AFTER YOU DECLARE BANKRUPTCY When you file a bankruptcy petition, you are required to list all of your creditors to whom you owe money. This means that you do not have to list creditors who have extended you credit, if you do not owe them money. So, before you file your petition, you can apply for a new credit card and not use it. Or, at least 90 days before filing your petition, you can take the credit card with the lowest balance and pay the balance due in full. Then don't use it. You must do the latter at least 90 days before you file your petition or it may be set aside by the court as a "preferential payment." In either case, the day after you file your bankruptcy petition you will have credit that you can use to start rebuilding your credit history. HOW WILL BANKRUPTCY AFFECT MY CREDIT RATING A common and legitimate concern of individuals or businesses who are filing for bankruptcy is about the effect it will have on their credit rating. No doubt, their credit rating already will have suffered due to the events that lead up to bankruptcy. There are some schools of thought that favor filing bankruptcy BEFORE creditors begin reporting activities. This is because, instead of lengthy reports with overdue notations, a report only will have a brief notation indicating bankruptcy. Also, some people are generally concerned about their future ability to obtain credit. Here again, there are a couple schools of thought. One group believes that creditors may be willing to extend credit to bankrupts because they cannot file bankruptcy again for six years. Of course, this would depend on an individual’s previous credit rating and their ability to repay. Lenders also may consider mitigating circumstances such as the national or regional economy and the role it played in a bankruptcy. Still, most believe that a bankruptcy will plague a person for years. The primary method creditors will use to relate the actions of
debtors is through "Credit Reporting Agencies." The agencies keep detailed
computer records of debtors and their credit habits, both positive and negative.
There are three major credit reporting agencies in the ACCOUNTS CHARGED TO PROFIT AND LOSS — SEVEN YEARS ACCOUNTS PLACED FOR COLLECTION — SEVEN YEARS BANKRUPTCIES — TEN YEARS DELINQUENT ACCOUNTS — SEVEN JUDGMENTS — SEVEN LAWSUITS — SEVEN YEARS |
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