Option 1. Credit Repair: Even if you have always paid your bills on time, inaccurate reporting may mean, you still need credit repair.
Option 2. If you choose Debt consolidation: Pay- back period typically 5 yrs debt paid off; thousands of dollars paid to debtors and at least 30% going to the debt consolidation company that in most cases will not grant you credit again. Then, you will have collections with $0 balance on credit report but, previous and current accounts end up with late pays due to negotiations and stall tactics of debt consolidation. Both collections and late pays are damaging weather you have a balance or not. After getting out of Debt consolidation to remove derogatory information such as: late pays, collections and charge -offs, etc….You will still need credit repair
Option 3. If you choose Chapter 7 Bankruptcy: Chapter 7 which will release you of all debt (you do not have to pay back). Collections and Derogatory information including Bankruptcy will still be on your credit report which means you will still need credit repair
*After discharge it will be 2 to 3 yrs post bankruptcy before you can purchase home.
**This is the perfect time to utilize credit repair to remove late pays, collections, charge offs and the bankruptcy itself.
Option 4. If you choose Chapter 13 Bankruptcy: Chapter 13 payment plan typically 5 yrs, after discharge 2-3 yrs post bankruptcy before you can purchase a home. Inaccuracies in deletion and duplication of these “paid for” debts means that even after Chapter 13 bankruptcy, you will still need credit repair
*Some states vary but, in general 2-3 years before major purchases such as a home can easily be made. Thus, as with Chapter 7, it’s a perfect time for credit repair to remove late pays, collections, charge offs and the bankruptcy itself.
Do you have a Lease to Own or Land Contract? You will still need to invest in improving your credit score as the Owner will not want to carry your note forever.
It is not advised to contact creditors or collection agencies directly or receive their calls as these actions can validate your past due debts.