Bankruptcy Personal Line Of Credit

I stood guarantee for the business line of credit. The business is almost gone and the loan stands at 95,000 USD. Bank is coming after me. What do i do ? Personal bankruptcy has been suggested by friends. what are the consequences of personal bankruptcy? I am so very worried. Is there a nicer resolution for this? My credit score is very good right now.

The lender can and will hold you responsible.

I suggest that you attempt to work out repayment with the lender.

Be carefull. If you get the bank to accept less than what is owed, then the forgiveness of part of the debt is income. You will have to pay taxes.

The bankruptcy will hurt your credit. It stays on the credit report for about 10 years. You may stil be required to pay back the debt, depending on the terms of bankruptcy. Personal bankruptcy, Chapter 7, will erase the debt, but you lose you home, savings, etc. Chapter 11 (business)or chapter 13 (personal) is a debt restructuring. You still have to pay back the loan.

If the business files bankruptcy, it will show up on your credit.

2008-09-07 15:22:17 by kate_v24

How To Get A Personal Loan After Bankruptcy. This is how you could get a Personal Loan after you file bankruptcy. After bankruptcy, you can get a ...

I would like to establish a credit line for my cleaning service, but my personal credit score is poor due to filing bankruptcy last year. DUNS numbers are expensive to obtain and of course, the more they add to your credit file the more expensive it gets. I believe the cheapest rate I saw was nearly $400.00. Any way around using my personal score or paying for an expensive DUNS number?

Bankruptcy last year? No one will touch you with a 10 foot pole. Get a secured credit card is the only hope. Perhaps soon you can get one with a high annual fee

2009-06-08 08:56:30 by chinchy101

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are you one of the millions in the world who have filed bankruptcy because of over spending? bad money management? It seems legit enough for a business to go bankrupt, but an individual who has just been on one too many shopping spres? I dont really agree. This stems from a particular person that I know who has filed 2 times. Not only was she unable to control her spending one time, she failed 2 times, and still gets offers for new credit cards within months of filing. Now, if you have filed once and have shown that you cannot support the line of credit that was given to you then why would companies offer you more lines of credit? I cant get any type of credit due to late fed student loan payments. Im in default, and they dont budge! But yet, get a few credit cards for personal spending and hey if you cant pay for it, file bankruptcy and we will give you more credit you cant afford! I cant file bankruptcy on the student loan, and because Im behind it will stay on my credit report until

No I donot feel that this is a viable alternative for those of us that cannot control our spending.

If it was up to me, credit cards would either be eliminated altogether or they would have to be "prepaid" - deposit $$$$ to account and then get credit card - which would eliminate the huge debt that americans are building up.

People refinance their homes to buy expensive SUV's, payoff credit card debt, buy boats, etc.

When the crunch comes and banks start calling in those (unsecured) loans, a lot of people will go from rich to poor.

The only way to handle credit cards is to pay them off monthly and do not spend over your budget. That way you get a free loan for 30 or so days. If credit card companies strat charging interest from the tiome of purchase, I will stop using them and pay cash.

2006-12-20 09:56:34 by Balu

I own a hair salon thats an Scorp, i am the only owner. With the salon debt and my personal i am tapped out and in the red with maxed out lines of credit and credit cards. Can i file bankruptcy on my personal stuff and keep my business untouched?

Yes, you need to see an attorney.

BUT, as a business that is carrying debt, your personal credit has probably been used to secure the business debt.

So, when you file personal bankruptcy the business credit is going to be pulled too.

Maybe there is a way to only pull the business debt that is personally guaranteed, but bankruptcy law is a complex mess now.

Most attorneys offer free consultations, gather up all your info for business and personal and go and talk to one.

Know that you are not the only one in your situation. Right now my S Corp is the opposite problem. The bank is thinking about taking away a loan we have had and paid on for over 7 years (never missed a payment, never been late). If that happens they will take our building loan too. That will send us personally into bankruptcy and we will lose our house too.

And the government just keeps giving the banking thieves more money and letting them destroy our country.

Good luck to us all.

2009-02-02 21:22:28 by kenneth d

I'm aware that it falls off after 10 years, and delinquencies and other negatives, more serious ones, about 7 years...and then we have hard inquiries about 2 years,...and other things..around that time frame, ..however that's just the fall off dates.


How about...how long these things actually IMPACT your overall credit SCORE, and your chances at obtaining new credit, personal loans or lines of credit, car loans, mortgages, etc?


Will your score recover after a few years...several years, will it take the full 7-10 years and will only recover after it falls off your record....,..

how long do banks and lenders care about it all? etc?

I went bankrupt in 1st quarter 2005, and it's pretty much coming up to the 5 year mark in 2010, so I'm assuming by NOW that my delinquencies have about a year or two to go...and the bankruptcy another 5,...and other more minor things like inquiries, go much sooner....


so should I start seeing my credit score increase, and more opportunities, or am I blacklisted as long as negative items are on my credit report?


does the actual SCORE count MORE than your credit REPORT...or does the report/history, and what's ever on it count more than the score?

you won't see any rise in your score until you start rebuilding your credit. You need to try for a credit card and use it intelligently.

2009-08-27 00:43:42 by nick cave