Legal Question in Bankruptcy in Nevada

I'm in the process of settling credit card debt and medical bills. Some of them report settled, paid charge off, paid collections, etc. If I file a chapter 13 for the rest of the unsettled accounts, how will the settled accounts appear on my report, or is everything negative just deleted. Thank you

Asked on 11/24/17, 12:58 am

1 Answer from Attorneys

Typically, when you settle a debt, your credit report indicates that the debt was settled for less than the full amount. If you file chapter 13 and receive a discharge, your credit report says discharged in Chapter 13 bankruptcy. However, you are missing the point. When you apply for credit, no creditor looks at your consumer credit report to see what each item says. Potential lenders, other than a mortgage company, usually don't have the time to look at your credit report item by item. Most lenders are only interested in one thing only, your FICO score. Settling and Chapter 13 are going to be damaging to any FICO score because it indicates that you have not paid your debts in full.

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Answered on 11/24/17, 11:08 am

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