Credit Report After BK

Ouch.. I didn't know they really went below 400. I have never filed a BK, but from what others have said here it doesn't take to long to rebound. This always kinda bothered me. Athough I had only one or two collections.... I had lower scores then some that just walked away from the debt they owed all together. Give it time, especially because you are not even discharged yet. Also be prepared to pay A REALLY HIGH interest rate if you need a car that soon, if you can even get one. I guess some finance companies would like the fact that you can't "walk away" for 7 more years.


BTW- In the event that this post sounded like I was dogging you for filing I am not. I just don't get how someone that just took a quick way out of thousands and thousands of dollars could have a better credit score then someone that didn't. I do know that sh** happens though that people can not control.

 

Listen: Don't feel bad. Yes your scores are low but statistically (at least from what I've seen on this board) people with BK's have scores far better than those that have open collections without filing. So take some comfort in the fact that your scores will increase and within a year or two you will probably be in the high 500's to mid 600's. Check this board if you don't believe me. Many people with BK's here have pretty decent scores. As for the car I would wait at least six months after the BK is discharged to apply. You should see some increase in your score by then even if it's small. Also, by then you might begin establishing some positive tradelines with secured credit cards. Though it's not common to see scores below 400 it is certainly something that is or should be common knowledge on this board seeing as how we are all so score obsessed. Well at least I am.

 

I generally do not deal with credit scoring in my activities,however recently I was assisting a senior obtain a reverse mortgage,the bank pulled a credit report which gave him a score of 760.

He declared BK ch7 4 years ago,(due to medical bills) at the time, before filing, his score on TU, the only one he kept was 420.He had been able to retain 3 major cc by having them 0 balance when he filed.

He resumed using them 60 days after final adjudication,and they show as never late on his report.Because the debts were medical/ hospital,the CRA completely eliminated them from his report after BK.

I do not know if this is normal procedure or not, they had all gone to a medical collection agency.

 

<begin rant>
I hear you OHNOSTUCK!

It seems like the more and more I read this board, the more people claim BK and then in a yr they have a better score than I do.

I have always thought of BK as an easy way out. Now I know sometimes it is because of health issues, but otherwise it sure seems like you can charge up say $20k and then claim BK and then in a year or two all is ok.

I say you claim BK, it should stay on your permanent record at least 7 yrs!

If someone can explain how else a BK can work, I am totally open to understanding more.
<end rant>

 

My scores are in the mid to high 600's because when I had to file 1 1/2 years ago, my credit was clean. I always paid my bills on time for many many years and never missed any payments of any kind.

Health problems on my end and a job transfer for hubby sent us for a ride we'd rather not have had to take. Having to file for Bk was NO PICNIC for us. Do you realize how depressing it can be to have a sub prime creditor send you a letter after a year of holding their card saying "Congratulations, we think we're going to let you carry our card for one more year." Geez, lucky me!!

Bankruptcy carries it's own burdens in my opinion. Even if my scores are higher, my BK speaks for itself in a lot of instances no matter what. It's not been a free ride for me, it's been a tough pill to swallow.

Sure people can rebuild soon after, but that doesn't make their bk disappear like magic from their reports. Some poeple luck out getting it removed, but it STAYS for the majority of us for the full time (7 - 10 years).

Just my thoughts.

Newstdt

 

Allen,

<begin rant>

BK does stay on your CR's for a minimum of 7 years! Unless, like EVERY OTHER tradeline that is reported, it's not updated, correct, complete or verifiable.

You only think BK is an easy way out because you've not been there. There's nothing easy about it.

Maybe your rant would be better placed if you looked at the medical and insurance systems in this country that push people to BK.

Chapter 7 = liquidation of assets to pay debts
Chaper 13 = pay back debts under court monitored time-frames.

You willingly, in most cases, give the court authority over your financial life for 3-5 years.

Liquidate everything or pay it back under reorganized terms -- I'm failing to see the easy way out.

<end rant>

Jen, post a thread directing LisaMc's attention to this one, she is presently repairing her credit while still in BK, C13.

My own C13 was discharged in 2001 and required 100% payback (I guess I'm still ranting eh?). I however didn't even consider looking at a credit report until this year; I was plain scared until I found this board.

The first score I pulled was TU as well, 389. It is now 549. TU's score tends to be the lowest for me so it may be more encouraging for you to pull your other scores as well. My others are in the 600's.

I think it's never too early to start addressing an inaccurate CR.

I believe the reason you see BKers with higher or comparable scores is that the BK reports are 90% + errors. Whether that's fair or not to the non-filers, I don't know, but that's where the rants should be directed, the CRA and OC and CA's inability to report accurate and complete information.

I don't make the rules, just try to follow them.

And, no worries, I thought I was the only one in the 300-club upon arrival. There's a lot here!

Never let anyone make you feel less because you've fessed up to being a BKer -- the world is full or stone throwers that haven't worn your shoes, and all the stereotypes, no matter how plain wrong, are still alive and well. You've been through enough, I say.

Nice to meet you, welcome to the board.

Sassy

 

Thanks Sassy... I guess I need to do more research on the background of a BK.

I just remember being in college, my friend and I bought everything on plastic. Two years after we graduated, he bought a house and then claimed BK. He kept the house and paid cash for everything after that. It made me so mad that I am playing by the rules.

Thanks again for your explanations.

Allen

 

I don't knowexactly which "rules" you are talking about.
The rules that force an elderly couple to lose their life savings after 40+years of work because medicare doesn't pay for 4 years of $2,000+ a month prescripton drugs?
The rules that allow cc companies and their owner banks to loan obscene amounts of no equty mortgage $$ to congressmen to influence legislation that will put more profits in these international influence peddlar's pockets?
Perhaps the rules that say, when someone is trying to pay their bills on time, can only make the minimum payments, and may be 30 days late on one bill, that ALL of their cc's jack up their interest -making it impossible to keep up their payments?
Or perhaps the rule that says the cc companies can offer their plastic to college students, along with beer coolers and t-shirts and get them started on the slippery slope to debt and credit slavery.

 

I heard that! I fell for every gimmick... I still have my first ever purchase back in 1991 with my first credit card I got in college.

I even remember going to the mall to buy a new video game with my credit card. I got pulled over for speeding... BOY did that game cost a lot! I remember paying for the ticket on credit.

I am sure I am still paying that off today.

Sorry for the troubles, I am not a bad guy...