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Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011

Filing or Discharge date to count number of years post bk?

Do creditors use the filing or discharge date for qualifications on credit approval?

 

The reason I ask is because I believe there is a difference between those filing 7 vs 13 in how creditors base their credit decisions.

 

When I was discharged, just a few months ago from a chp 13, out of the gate I was getting approvals for every card I applied for.  Not one denial at all.  Compare that to many chp 7 filers and you see a different pattern.  So I started thinking about the fact that the two categories, 7 vs 13, are still bankruptcies and why is there such a difference?  The only answer I can come up with is that it has to be that on a 7 they use the discharge date to start the clock ticking and the filing date for a 13.

 

In my case the filing date is almost 6 years ago so I only have 1 more year before it falls off.  My discharge date is clear on my reports so its not like they can't see it.  So I was just wondering if this could be the reason that they are using slightly different criteria to base their credit granting decisions.  I mean literally out of the gate of discharge one of the first cards I was approved for was a $7500 visa, and trust me I was shocked and thought it was an error, but no it was true.

 

So they could not have based their decision, at least in my case, on the discharge date and had to be the filing date.  Anyone have any thoughts on this?


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
New Contributor
DonMzBhavin
Posts: 69
Registered: ‎10-13-2012

Re: Filing or Discharge date to count number of years post bk?

Also the 2 filings carry different weight. Consider that a Chpt 7 is considering yourself insolvent and you are "liquidating" your assets. With a Chapter 13 you are restructing debt and repaying it. Most Chpt 7 filers walk away paying nothing to their creditors and Chapter 13 filers pay back smaller portions but nevertheless they spend years paying back the creditors. I am sure it is filed date for Chapter 7also with the clock. 

 

Putting yourself in the creditors shoes who would you extend credit to first the person that says I have so much I can't pay anything (Chpt 7) or the one that says I have a lo but will pay (Chp 13). 

 

I filed Chapter 7 but was immediately approved for some credit cards, new car, and all other kinds of debt-worthy tools lol even before discharged. Once the BK hit my credit report offers started coming and even more after discharge. YMMV for most people. Everybody who files BK of course doesn't always down in the crapper credit scores or credit history. Unforeseen lost jobs or medical expenses can take a 700+ credit member to BK but based on credit history can save them from becoming a 400 credit score member and salvage their score which can litterally take just a few months to bounce back from.

 

imho


Starting Score: 467
Current Score: 661
Goal Score: 795


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Post BK Wallet: Target VISA $10,000 (AU) | NFCU Credit Card $5,000| Walmart $1100| Cap One Platinum $3000 | Amazon $1150 | Discover It Card $500 | Cap One Secured $500 | PayPal Smart Connect $500 | Lane Bryant $1130| Dressbarn $750 |NY & Company $250| Victoria's Secret $250 | Target Store Charge $200 |Capital One Auto Finance
Established Contributor
SoulMaster
Posts: 981
Registered: ‎11-08-2011

Re: Filing or Discharge date to count number of years post bk?

Don is right.

 

If you get a 13 discharged, you are presumed to have 3-5 years of perfect payment history to the court, too.

 

And remember, after discharge of a 13, you're 3-5 years post filing... the impact of the BK isn't nearly as bad, and, depending on timing, some of your delinquent accounts may have fallen off, too.

 

Regardless, both 7 and 13 are based on filing date.  6 years after filing a 7 can get someone a $7500 approval, too.  Heck, I'm only 2.3 years post filing my 7 and have a visa w/ a $8000 limit.  Granted it's NFCU, but I also have a Discover w/ a $2500 limit.  

 

-SM

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of 3/15/14 All 700+. Last CR pull from a lender(housing) was mid-score 729.
Goal Score: 700+ - reached.
Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011

Re: Filing or Discharge date to count number of years post bk?

[ Edited ]

SoulMaster wrote:

Don is right.

 

If you get a 13 discharged, you are presumed to have 3-5 years of perfect payment history to the court, too.

 

And remember, after discharge of a 13, you're 3-5 years post filing... the impact of the BK isn't nearly as bad, and, depending on timing, some of your delinquent accounts may have fallen off, too.

 

Regardless, both 7 and 13 are based on filing date.  6 years after filing a 7 can get someone a $7500 approval, too.  Heck, I'm only 2.3 years post filing my 7 and have a visa w/ a $8000 limit.  Granted it's NFCU, but I also have a Discover w/ a $2500 limit.  

 

-SM


Ahhh okay so the filing date is the determination.  So yes, whether a 7 or 13, 6 years after the filing both candidates could qualify for the same approval.  Yea that helps add some clarity.

 

It was just boogling my mind that I could get discharged and immediately be able to obtain some high credit limits and yet many 7 filers that were just discharged were having a much more difficult time until a few years later.

 

Thanks for the clarification....I guess I really had answered my own question but I just wanted to make sure that I was correct in my assumption.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014

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