Impact of negatives after discharge

[noobafterbk]

I would like to find out any information on how much negative accounts discharged in BK7 have on your new and rebuilding report. I have a repo from just prior to filing I decided the affirmation deal was not financially viable, however now that my discharge is 15 months old how much is that negative having on my current file?

Is the BK a clean slate, or because its on my report for the next 7 years will the repo continually impact my account for the next 5.5 years before falling off. 

Many thanks

[jim44]

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@noobafterbk wrote:

I would like to find out any information on how much negative accounts discharged in BK7 have on your new and rebuilding report. I have a repo from just prior to filing I decided the affirmation deal was not financially viable, however now that my discharge is 15 months old how much is that negative having on my current file?

Is the BK a clean slate, or because its on my report for the next 7 years will the repo continually impact my account for the next 5.5 years before falling off. 

Many thanks

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It's been my experience (and YMMV) that missed payments prior to BK do have an impact. I know that when trying for a auto loan, lenders will look at your past auto loan history.  Now with Chap7 you have a clean slate and can start over, however BK7 will stay on your CH for 10 years. This will always have an impact on your CS, however with time the negative impact will lessen. The best of luck with your journey.

[TRC_WA]

As long as negative accounts and/or a public record is on your profile your scores will be affected... less as the derog ages.

I've got less than a year until ALL my Ch 13 stuff falls off (a Ch 13 discharge public record is removed at 7 years instead of 10 years with Ch 7) and every approval/denial I see still says "serious delinquincy and/or public record on file" despite the fact the stuff is 6+ years old.

So yeah... you may get a "fresh start" but the negatives still hurt you until they are gone.  Yes, that includes the repo that is on your report OP.

[cem13]

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@noobafterbk wrote:

I would like to find out any information on how much negative accounts discharged in BK7 have on your new and rebuilding report. I have a repo from just prior to filing I decided the affirmation deal was not financially viable, however now that my discharge is 15 months old how much is that negative having on my current file?

Is the BK a clean slate, or because its on my report for the next 7 years will the repo continually impact my account for the next 5.5 years before falling off. 

Many thanks

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I have extensive experience with this topic.  I recently called Experian to straighten out a few things.

1) BK will stay on your CR for the legal time period (10 years for BK7)

2) All acounts IIB will report as derogatory.  The scoring will have a negative impact for 2 years post discharge.  Then your scores will improve and the derogatory tradelines will not affect your score 2 years post discharge.  The 2 years to 700 road map worked for me.  So after 2 years post BK7, you will get re-bucketed until the BK7 ages off.  There are 2 negative buckets and 6 (or more) positve buckets.  So once you go from negative bucket 1 to negative 2, your scores will be range bound.

3) I had a Charge-Off that was IIB and I asked TU for an Early Exclusion and my score DROPPED because I lost AAOA as this was a 15 year account and my AAOA is 9 years.  So this dropped my AAOA by 6 months.

4) So 2 years post discharge, the scores will be "range bound" from 700~730 for the remained of the BK reporting.  Once the BK ages off, scores jump 50~100 points.  So if your file is clean until the BK ages off; your scores should be near 800.

So bottom line, keep your file clean after BK7 discharge.  Continue to improve scores to the 700 mark at the 2 year discharge date.  The "2 year to 700 Guide" from Soul Master is a great roadmap.   All Tradelines that are IIB add to the AAOA and are a POSITIVE (assuming your T/L is a higher age than your AAOA).  There is ZERO advantage to remove the IIB accounts UNLESS they negatively affect your AAOA.  Of course YMMV.

[noobafterbk]

Wow thats some great info. 

The negatives are actually nearly seven  years old and due to fall off by Aug/Sept 2015 anyway so I guess i will take a AAOA hit when the two of them disappear from my report, I was thinking of excluding/deleting early.  Im pretty happy with my rebuilding and honestly the thought of getting into lots of credit actually scared me post BK but I see now how important having good credit is; so my focus is on managing it responsibly and focusing on long term benefit rather than short term.

I will file today to have a Satisfied Judgement vacated in Florida because its still reporting on Equifax. I know its maybe not impacting anything post two years but just for me to have a clean report ( exp for BK7 of course) is something I want; OCD as my wife tells me  Is that a good idea or will that impact me negatively?

many thanks again for the helpful info

[TRC_WA]

OP you'd be wise to take his advice with a grain of salt. 

I didn't know filing BK7 and talking to an Experian customer service rep qualified you as a FICO expert.

[cem13]

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@noobafterbk wrote:

Wow thats some great info. 

The negatives are actually nearly seven  years old and due to fall off by Aug/Sept 2015 anyway so I guess i will take a AAOA hit when the two of them disappear from my report, I was thinking of excluding/deleting early.  Im pretty happy with my rebuilding and honestly the thought of getting into lots of credit actually scared me post BK but I see now how important having good credit is; so my focus is on managing it responsibly and focusing on long term benefit rather than short term.

I will file today to have a Satisfied Judgement vacated in Florida because its still reporting on Equifax. I know its maybe not impacting anything post two years but just for me to have a clean report ( exp for BK7 of course) is something I want; OCD as my wife tells me  Is that a good idea or will that impact me negatively?

many thanks again for the helpful info

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Any tradelines that are IIB and are post 2 years discharge; those tradelines are not hurting your scores.  They actually help by adding to the AAOA.  You will see a hit to AAOA once the IIB ages off.

The key piece of data is "IIB and balance of $0".  Then this tradeline will be scored correctly.

The judgement will NOT affect your scoring; however, it is considered a "Public Record" and each Lender has their own guidelines and may not offer credit so you should have it removed if legally possible.  I have an old Tax Lein on EX.  All 3 CRA are almost the same otherwise but my EX is 709 and EQ is 706.  So the old Tax Lein is not huring my score but a lender could use it against me.

[TRC_WA]

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@cem13 wrote:

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I have extensive experience with this topic.  I recently called Experian to straighten out a few things.

1) BK will stay on your CR for the legal time period (10 years for BK7)

2) All acounts IIB will report as derogatory.  The scoring will have a negative impact for 2 years post discharge.  Then your scores will improve and the derogatory tradelines will not affect your score 2 years post discharge. 

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Please quit posting infomation based on a phone call to an Experian customer service rep.

Go read the dozens of threads in the rebuilding forums from people who have had 7 year old derogs fall off their reports... AND THEY GOT A SCORE INCREASE.

Your statement that derog tradelines don't affect score 2 years after discharge couldn't be further from the truth.

You know what's even funnier... TODAY is my 2 year discharge date... 5/7/15.

My scores didn't move so it's safe to say you are misinformed.

[cem13]

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@TRC_WA wrote:

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@cem13 wrote:

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I have extensive experience with this topic.  I recently called Experian to straighten out a few things.

1) BK will stay on your CR for the legal time period (10 years for BK7)

2) All acounts IIB will report as derogatory.  The scoring will have a negative impact for 2 years post discharge.  Then your scores will improve and the derogatory tradelines will not affect your score 2 years post discharge. 

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Please quit posting infomation based on a phone call to an Experian customer service rep.

Go read the dozens of threads in the rebuilding forums from people who have had 7 year old derogs such as collections and CO's fall off their reports... AND THEY GOT A SCORE INCREASE.

Your statement that derog tradelines don't affect score 2 years after discharge couldn't be further from the truth.

You know what's even funnier... TODAY is my 2 year discharge date... 5/7/15.

My scores didn't move so it's safe to say you are misinformed.

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Of course this is a YMMV because the scoring model is very complicated and not everyone has the exact same file.

I cannot answer for anyone else.  I do not know if they had a score increase.  Was it IIB, was it being scored correctly?  There are so many factors.  However overall tradelines that are 2 years post BK7 that are scored correctly will not affect the scoring. 

You have a BK13 not a BK7.  So your situation is different.  You always try to make a "one size fits all".  It does not work that way. Everyone is different but there is a re-bucketing at the 2 year mark with a BK7.  It may not be EXACTLY on the same date either.  It could be at the end of the month.

You should stop posting and go to bed.

[TRC_WA]

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@cem13 wrote:

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You have a BK13 not a BK7.  So your situation is different.  You always try to make a "one size fits all".  It does not work that way. Everyone is different but there is a re-bucketing at the 2 year mark with a BK7.  It may not be EXACTLY on the same date either.  It could be at the end of the month.

You should stop posting and go to bed.

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You should stop posting misinformed garbage that is 100% wrong.

There is no one size fits all... an IIB account is a derog.

The fact you are saying that an IIB account doesn't affect your score after 2 years is completely wrong...  feel free to continuing spewing this nonsense... I'm just letting everyone know that your information is wrong.