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Established Contributor
SoulMaster
Posts: 981
Registered: ‎11-08-2011

Re: How to rebuild your score after a ch7 BK


WhoisIsaac wrote:

 

The only way you can do this is with a Pro Se filing. - FALSE 

 

There have even been cases where a BK7 has been successfully removed early. - One or two cases per hundred thousand-or-so attempted.  Trying to remove a BK early (especially in years 1-5) is nearly impossible.  Also, if you get it removed, then lie that you never filed, that's bank fraud.  

 

With the BK7 showing for up to 10 years it may be difficult to get favorable rates even with a score of 700 though - FALSE.  You might not get the most favorable rates, but car loans sub 2% and home loans at 1/4-1/2 point higer than perfect credit are hardly considered "unfavorable"

 

and its real unlikely you can get the BK7 removed yourself... - I think this is the only true thing you said.  Should have followed with "It's a complete waste of time to even think about trying to get it removed early".

 

 


Normally I don't call people out on the forums, I'm not like that.  But, some of what you're saying is blatantly wrong and is going to hurt people who are honestly trying to rebuild their lives/credit after BK.  Also, this thread isn't about removing a BK from your reports, it's about rebuilding your credit profile after you file a bankruptcy.

 

In ALL cases, EVERY time people should use attorneys to handle their bankruptcies.  

 

I grant no exception to this rule. The guide I wrote was based on my own case.  I used an attorney.  The fact is, I'm a paralegal and I'm 100% certain I could have filed on my own.  Guess what?   I didn't.  As a corrolary, I have the knowledge to change my own brakes on my car, too.  But if I screw that up, I die. So, I don't.  As the old saying goes, "An attorney who represents himself has an idiot for a client."   In the worst case scenario (unable to afford the $1500-$2000 for an attorney, incl filing fees), people should go to the legal aid center and get a free attorney assigned.  This isn't the greatest idea in the world, as they will get what they pay for, but it's still better than filing Pro Se.

 

By the way, I'm 100% positive searches will reveal Pro Se bankruptcies that went perfectly fine and were completed smoothly with no hiccups.  That's the exception, not the rule.  Generally speaking, Pro Se BK takes longer, has more problems and get's kicked out of court more often.

 

Regards,

 

-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
Scupra
Posts: 1,152
Registered: ‎07-12-2012

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

[ Edited ]

SoulMaster wrote:

I doubt your AAoA is 5 years, it's probably closer to 8 months... the BK, in most cases, acts like a master-reset.  When calculating AAoA, calculate it on open accounts only.

 

Assuming you don't have a current auto loan or house, you're missing the "mix of credit" portion of the scoring.  Go get a credit builder loan for like $1000/12 mo.  Then, go back to the garden and keep your balances down. :smileywink:

 

Cheers,

 

-SM


I have a Cap1 account that was opened 11/2005 with almost perfect payment history (two lates) There was no balance on it when I filed BK7 but they closed it due to BK. It still shows on my report and when I paid for reports from TU and EQ through myfico.com it said 5yrs so I assumed that was correct. I was planning to attempt to buy a car at 1yr post d/c. Do you think that is a good idea and will help with credit mix, or should I pull the trigger on that now? Thank you again

 

edit: not sure if it makes any difference, but I do have two paid satisfactory auto loans on my reports and one iibk car loan.

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
691 EQ FICO 06/2014
684 TU FICO 06/2014
682 EX FICO 04/2014
$7k NFCU Flagship Sig - $8.5k NFCU cashRewards Sig - $15k NavChek - $2k Cap1 Quicksilver - $3k Barclays Arrival +
Established Contributor
SoulMaster
Posts: 981
Registered: ‎11-08-2011

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Closed is closed and doesn't count.  Real AAoA is "open".  My AAoA is showing something ridiculous too, but last time I applied for something (Barclays, I think) one of the reason codes mentioned AAoA. (Approved on recon).

 

There is one of the reporting places that gets it right in the math, but I don't remember which one it is.  Also part of the reason people say "don't close old accounts w/ no AF".  Well, AAoA and D:CL.

 

Regardless, get the credit builder loan unless the auto loan is reporting perfect history.  It's going to cost you like $40 in interest and force you to save $1000 while helping your credit scores.  I love CB loans!

 

-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
Scupra
Posts: 1,152
Registered: ‎07-12-2012

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

[ Edited ]

SoulMaster wrote:

Closed is closed and doesn't count.  Real AAoA is "open".  My AAoA is showing something ridiculous too, but last time I applied for something (Barclays, I think) one of the reason codes mentioned AAoA. (Approved on recon).

 

There is one of the reporting places that gets it right in the math, but I don't remember which one it is.  Also part of the reason people say "don't close old accounts w/ no AF".  Well, AAoA and D:CL.

 

Regardless, get the credit builder loan unless the auto loan is reporting perfect history.  It's going to cost you like $40 in interest and force you to save $1000 while helping your credit scores.  I love CB loans!

 

-SM

 


Makes sense SM! Im still confused on the loan. I have no car loan now and am just waiting until 10/2013 to apply for one, thinking that at 1yr post d/c would be a good time to apply. I dont want to apply for a $1k loan and than apply for an auto loan 3 months later correct? Or are you saying to start the small loan now and still apply for the auto in 10/2013? Forgive my confusion :smileyhappy:

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
691 EQ FICO 06/2014
684 TU FICO 06/2014
682 EX FICO 04/2014
$7k NFCU Flagship Sig - $8.5k NFCU cashRewards Sig - $15k NavChek - $2k Cap1 Quicksilver - $3k Barclays Arrival +
Established Contributor
SoulMaster
Posts: 981
Registered: ‎11-08-2011

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Starte a small loan now... a credit builder-type product.  Something like this one from One Nevada credit union:

 

Credit Builder Loan

You know how important it is to have good credit. A Credit Builder Loan is your key to establishing or reestablishing your credit. Here’s how it works: One Nevada loans you money that is deposited into a certificate of deposit. You make regular payments that are reported to the credit-reporting agencies. Once the loan is paid off, you get the certificate of deposit and have a better credit score.

 

You should get a pretty quick bump from having a mix of credit types, which will help you with your car loan in October unless $84/mo kills your DTI.  That would be ridiculous, though.

 

-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.
Member
sunday
Posts: 12
Registered: ‎02-17-2012

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Wow, so much great info!

 

I just filed bankruptcy and haven't yet had my 341 meeting. I'm very eager to get on with everything and begin rebuilding, however. Even though I'm in the middle of a bankruptcy, is it possible to begin rebuilding now or should I wait until my discharge?

 

I don't have a car anymore (repossession) and it's hard to ignore all the offers for a car, even knowing I'll probably get an interest as high as my age, lol. I work nights and have to walk alone in the dark. Not fun...

 

Thanks!

Frequent Contributor
shols44
Posts: 397
Registered: ‎11-03-2012

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!


sunday wrote:

Wow, so much great info!

 

I just filed bankruptcy and haven't yet had my 341 meeting. I'm very eager to get on with everything and begin rebuilding, however. Even though I'm in the middle of a bankruptcy, is it possible to begin rebuilding now or should I wait until my discharge?

 

I don't have a car anymore (repossession) and it's hard to ignore all the offers for a car, even knowing I'll probably get an interest as high as my age, lol. I work nights and have to walk alone in the dark. Not fun...

 

Thanks!


Other than routine CR check-up to make sure things are reporting accordingly, I would wait till discharge. There is not much to rebuild until DC is in hand. 


Starting Score: 501
Current Score: 706 EQ,TU 689,EX 686
Goal Score: 720

Member
sunday
Posts: 12
Registered: ‎02-17-2012

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Thanks for your reply!

Established Contributor
SoulMaster
Posts: 981
Registered: ‎11-08-2011

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Ha!

 

Shols is like the master of this thread now... I love it!

 

What he said! Personally, I wouldn't waste the pulls until after, but I like saving money.

 

-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.
Frequent Contributor
shols44
Posts: 397
Registered: ‎11-03-2012

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!


SoulMaster wrote:

Ha!

 

Shols is like the master of this thread now... I love it!

 

What he said! Personally, I wouldn't waste the pulls until after, but I like saving money.

 

-SM


No way Sir! You still da boss. If not for this thread, my head would still be buried in the sand! I owe you big!


Starting Score: 501
Current Score: 706 EQ,TU 689,EX 686
Goal Score: 720


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