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Chap 7 Removal off CR

New Contributor

Chap 7 Removal off CR

Hi all, quick question..Chap 7 on my report is almost 10 years old, ready to drop off next year may. Im just wondering as when I apply for credit some of the negative things that show up on the approvals or denials, is the presence of a BK. Now i was under the impression that after 7 years this shouldent matter. Will it be better next year when it comes completely off?  not that im worried as I pretty much have been aprroved for everything I need, but next year im buying a home and would like no negative on my reports Smiley Happy

 

Thanks

 

7 REPLIES
Community Leader
Super Contributor

Re: Chap 7 Removal off CR

When was your file date?? The CRA remove BK7's 10yrs from file date, not DC date. Also, TU is really good about EE 6mo before drop date. the others its hit and miss between 3-6 prior.

Depending on your rebuild, and how well you've done, and also having no negatives at all after your BK DC, and no negs at all on your report other than the BK itself, your scores should sky rocket!

To prime yourself for your mortgage next year, before you apply, (if you're waiting till the BK is off)....pull your reports first and make sure everything is good...no CO, or negs snuck up on you and reported (zombie debts).

3-6 months prior to applying for a mortgage, "opt-out" with all three CRA's. When your lender goes to pull a mortgage report on you, certain zombie debt collectors etc subscribe to an alert from the CRA that alert them you're looking to buy a house. All of sudden, an "old" debt appears on your report, tanking your scores, and the lender will see it, question it, and make you pay it before approval.  Not to say it would happen to you.  Its happened to lots of folks, even ones that filed a BK, and the debt was IIB. Just food for thought!

Having a BK on reports hasn't stopped a lot of folks from getting a mortgage long before their BK falls off reports. If you're in no hurry, and you only have one less than a year left, by all means wait until your reports are clean.

Also, that "7yr rule" thing matters. you had a BK, its on there for 10 yrs. It'll matter until it falls off, but the impact of decision making from a lender really starts to decline after the 7-8 yr mark, especially if you've had a really good rebuild. Good luck to you! Smiley Happy

(BK7 d/c-08/2013/FICO-400's) ~ 07/2017 FICO 08- EQ-669, TU-676, EX-681
Scores being held down by tons of INQ/New acts Smiley Wink
New Contributor

Re: Chap 7 Removal off CR

Thanks for the reply.  CR is clean now, no negs at all except that BK, filed in june of 08.  Just got a bunch of cards also.  Scores as of now are high 600's to low 700's.

 

As far as the mortgage, im in a fist home club, which requres a very low score,  630 if I remember correctly, and I told them about the BK, it will be off by then anyways, first home club program ends in august.

New Visitor

Re: Chap 7 Removal off CR

I also am waiting for a bankruptcy to go away and it does confuse me. I filed December of 2007 so this December will be 10 years. Yet, just last month I was denied a credit card becuase I had a bankruptcy on my file. My score is 670 currently. No matter what I do I can't seem to get it above 700 and I am wondering if it is the bankruptcy still plauging me? Any thoughts?

New Contributor

Re: Chap 7 Removal off CR


craig970 wrote:

I also am waiting for a bankruptcy to go away and it does confuse me. I filed December of 2007 so this December will be 10 years. Yet, just last month I was denied a credit card becuase I had a bankruptcy on my file. My score is 670 currently. No matter what I do I can't seem to get it above 700 and I am wondering if it is the bankruptcy still plauging me? Any thoughts?


Seems the same for me, but was never denied for anything recently.  For instance, I got a CLI from my amazon card, asked for a huge amount, they gave me smaller.  Got a letter in the mail stating reasons, and it showed my BK as a reason, so they didnt deny me, but it def mattered that it was there im thinking.

Community Leader
Super Contributor

Re: Chap 7 Removal off CR


craig970 wrote:

I also am waiting for a bankruptcy to go away and it does confuse me. I filed December of 2007 so this December will be 10 years. Yet, just last month I was denied a credit card becuase I had a bankruptcy on my file. My score is 670 currently. No matter what I do I can't seem to get it above 700 and I am wondering if it is the bankruptcy still plauging me? Any thoughts?


Yes, it is limiting you. As long as it is there your scores will top out at arounbd 700-725.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
New Member

Re: Chap 7 Removal off CR

my personal opinion is that it is because of the BK. One of my credit files does not show my BK and my score is 745. The others with the BK and pretty much same info the scores are around 660.

Regular Contributor

Re: Chap 7 Removal off CR

 

NormanFH wrote:

craig970 wrote:

I also am waiting for a bankruptcy to go away and it does confuse me. I filed December of 2007 so this December will be 10 years. Yet, just last month I was denied a credit card becuase I had a bankruptcy on my file. My score is 670 currently. No matter what I do I can't seem to get it above 700 and I am wondering if it is the bankruptcy still plauging me? Any thoughts?


Yes, it is limiting you. As long as it is there your scores will top out at arounbd 700-725.


Not to get too far afield but I had wondered this. What you could reach, if you had filed for BK, but after the BK maintained spotless payment history, 3-5 cc's at ideal util, one  open installment line at same, and no mortgage (hey I'm only looking at what's potentially relevant to me ;-)). 

Thanks for the info.

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
11/2017 EX 609; EQ 619; TU 558