Bankruptcy will affect people differently depending on all of their other financial criteria. Usually banks will use a bankruptcy to disqualify someone from getting an FHA gauranteed mortgage for two years from the date of the BK. Other banks have different policies. If you have a 20% down payment there are banks that will not consider the credit report and bankruptcy when giving the loans and there are always private sources of loans.
Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.
Did you dispute it with the credit bureaus? Did you provide proof that the listing was wrong? Unless the change affects your credit, there are no damages here. How it affects you depends on the rest of your credit history and how old this debt is.
The cost to file depends on the specifics of your case. I have many terrific colleagues in your part of Virginia who can help you. See one of them. You can find them through the National Association of Consumer Bankruptcy Attorneys. Maybe there is an alternative for you.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.
Generally in New York the attorneys fee to file a chapter bankruptcy varies from $1,000 to $2,000 plus filing fees of $306. I usually charge on the lower side because I have less overhead expenses and I understand that people filing for bankruptcy usually don't have too much money. That being said, I would call local attorneys and ask for free consultations over the phone and also ask them what they would charge for your case.
This answer is to be considered general advice and may not be the actual law in your jurisdiction. It also does not constitute an attorney-client relationship or privilege.
The cost of a bankruptcy depends on the difficulty of the case. As with most attorneys, we offer a free consultation in our Virginia Beach office to sit down and figure out what your bankruptcy options are.
Your negative credit score as a result of bad credit is as much an impediment to purchasing a home as a bankruptcy is. The difference is you still owe for the charged off debt and it could come back eventually to collect on the debt through garnishment, liens or levies.
If you would like a free consultation to find out indepth what can be done and the cost, my contact information is below.
John G. Merna
The Merna Law Group, PC
This answer in no way creates an attorney-client relationship. The answer is not a complete answer and requires additional facts in order to provide the best options. The submitter accepts the risk of relying on such an incomplete answer and waives any claims of damages for doing so. As stated in the answer the submitter should contact a qualified bankruptcy attorney is discuss these issues further before any action is taken. Any action taken without advise and counsel of a qualified attorney is inadvisable.