How long will negative info stay on CR?

[rebuildcc]

I found this: http://www.myfico.com/CreditEducation/questions/Negative-Items-On-Credit-Report.aspx but is it true and applied to my case if I filed back in 9/2005 and was discharged on 1/2006.  I remember there was some BK laws changed right after I filed.  In my case, will it only be 7 years instead of 10 years? Will it be counted from filed date or discharged date?  Thanks.

[MarineVietVet]

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@rebuildcc wrote:

I found this: http://www.myfico.com/CreditEducation/questions/Negative-Items-On-Credit-Report.aspx but is it true and applied to my case if I filed back in 9/2005 and was discharged on 1/2006.  I remember there was some BK laws changed right after I filed.  In my case, will it only be 7 years instead of 10 years? Will it be counted from filed date or discharged date?  Thanks.

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Welcome to myFICO.

Chapter 7 remains for 10 years from the filing date. Chapter 13 remains for 7 years from the filing date. Accounts included in bankruptcy will remain 7 years from the date they were reported as included in the bankruptcy. What type of BK did you file?

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

[Anonymous]

The timing indicates that would be a chapter 7; chapter 13 takes a minimum of three years.

So, OP's BK will be reporting for 10 years from filing - or until 9/2015.

However, you can have lovely FICO scores even with a BK reporting - and there's several creditors who will work with you. 

At five years out, FICO scores can be in the 700's.

OP - That means you've got five additional years of rebuilding solid credit until your BK falls off - at that point you should have a golden score! 

In the meantime you can have a great score!  Keep on keepin' on!

[MarineVietVet]

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@Anonymous wrote:

The timing indicates that would be a chapter 7; chapter 13 takes a minimum of three years.

So, OP's BK will be reporting for 10 years from filing - or until 9/2015.

However, you can have lovely FICO scores even with a BK reporting - and there's several creditors who will work with you. 

At five years out, FICO scores can be in the 700's.

OP - That means you've got five additional years of rebuilding solid credit until your BK falls off - at that point you should have a golden score! 

In the meantime you can have a great score!  Keep on keepin' on!

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I'm confused which is pretty common. Can you clarify what you mean by this so that I'll be less in the dark? 

[Anonymous]

Well, I'm totally in the dark as far as Ch 7 goes generally.  So this is like the blind leading the blind.

However, when the OP states " I filed back in 9/2005 and was discharged on 1/2006,' that must be a Chapter 7. 

Chapter 13, which is something of a "debt restructuring plan" requires a minimum of 36 months of payments before discharge.  And I think it can be as long as 60 months.  Chapter 7 runs a much shorter time frame from filing to discharge - I'm usually seeing several months so I'm guessing that's the norm for Chapter 7.

In Chapter 13, for those who haven't had to go through the experience, you submit monthly payments to a trustee who then takes a percentage and distributes the remainder to your creditors according to the BK plan you worked out when you filed.  Even if you paid 100% of the debts plus the trustee's fees in short order, the Ch. 13 cannot be dismissed until a minimum of 36 months.  So, if I paid everything off in, say, 24 months, I would still not be eligible for discharge until 36 months after filing.

If I replied in typical fashion, I left everyone more confused than when I started!  But I hope that sheds a little light.

[MarineVietVet]

Now I understand. The reason you said The timing indicates that would be a chapter 7 is because of the amount of time between filing and discharge. That makes perfect sense.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

[rebuildcc]

I'm sorry for missing the info in OP.  It is Chapter 7.

Q: Will it mean that all of bad entries including collections be fall off my CR and cleaned on/after 9/12? and BK status will stick in PR until 9/2015? 

My score is 694 EQ and I've been turned down for  home loan b/c of BK and many bad entries (21) on my CR.  I currently have 2 car loans; one is about 18/60 months, and one is 1/60 months old. 

Q: Should I pay off one of the car loan to help my score up above 700 mark?  I decided to get second car loan in hoping that will help my score, but I don't see any change yet. If I need to pay off one of them, which one do you suggest to pay off first, or it doesn't really matter?

My UTL is currently less then 5%.  I heard about being payoff some of CC will cause the score going down or up with TU and EQ. Is that fair?

Found this forum is very helpful and thank you for all of your inputs.

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Found very useful info here about credit reporting time period ... http://ficoforums.myfico.com/t5/General-Credit-Topics/Credit-Reporting-Time-Periods/m-p/4577#U4577

[Anonymous]

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@MarineVietVet wrote:

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@Anonymous wrote:

The timing indicates that would be a chapter 7; chapter 13 takes a minimum of three years.

So, OP's BK will be reporting for 10 years from filing - or until 9/2015.

However, you can have lovely FICO scores even with a BK reporting - and there's several creditors who will work with you. 

At five years out, FICO scores can be in the 700's.

OP - That means you've got five additional years of rebuilding solid credit until your BK falls off - at that point you should have a golden score! 

In the meantime you can have a great score!  Keep on keepin' on!

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I'm confused which is pretty common. Can you clarify what you mean by this so that I'll be less in the dark? 

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... to which beamMEup replied:

Well, I'm totally in the dark as far as Ch 7 goes generally.  So this is like the blind leading the blind.

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MVV, any time you hear this line from beamMEup it means you are really being set up for a smack upside the head.  Do not fall for Beam's sweet, innocent and harmless look! 

[chasmith]

Rebuildcc, you gave your EQ score as 694, which I hope is FICO and not FAKO.  If your other scores are similar (for home loans they start with your mid-score, the one of the three in the middle).  FHA requires a minimum 620 score, above 660 you should be able to go conventional.

FHA requires two years after discharge, conventional is 4 or 5.

So it sounds like you may have made it past the score and BK but are being denied for negatives on the reports.  Raising one score above 700 won't offset the other issues.

Since all accounts discharged in bankruptcy should show IIB no later than your discharge in 2006, have you had negatves that occurred after your discharge?  Is it possible some of your BK accounts aren't reporting correctly?

Have you looked at all three credit reports?  Real Estate lenders will.

[Anonymous]

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chasmith wrote:  FHA requires two years after discharge, conventional is 4 or 5. 

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Just a note for other post BK-ers who are seeking mortgages, 

We did a conventional about six months post CH-13 discharge.  We thought we'd have to wait, and that we'd have to go FHA at that point, but we were pleasantly surprised. For both of us, our mid-scores were in the 720's.