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New to Bankruptcy and very nervous

New Visitor

New to Bankruptcy and very nervous

Hello thinking about this for months, 

I finally decided I have to file for chap 7 non consumer bankruptcy.

I have credit cards with all the major banks, mulitple chase, multiple amex, discover, citi , citi best buy, barclay 

and then a few business loans and terms with a few of our vendors.

The business went out of business earlier this year, and I was trying to keep my head above 

water, but it was becoming impossible to make even minimal payments. All of these were business debts.

 

I am filing the BKR in my name only, as my wife doesn't have debt in her name, and the house is only 

in her name.

 

So I have a few questions, my score is already low 500 range, will it go much lower?

Will I ever be able to get a chase card or amex?

Anything else I need to do?

 

Also can the chapter 7 be removed before the 10 years thorugh a credit repair?

 

Thanks for the help!

 

6 REPLIES
Frequent Contributor

Re: New to Bankruptcy and very nervous


consulting2017 wrote:

Hello thinking about this for months, 

I finally decided I have to file for chap 7 non consumer bankruptcy.

I have credit cards with all the major banks, mulitple chase, multiple amex, discover, citi , citi best buy, barclay 

and then a few business loans and terms with a few of our vendors.

The business went out of business earlier this year, and I was trying to keep my head above 

water, but it was becoming impossible to make even minimal payments. All of these were business debts.

 

I am filing the BKR in my name only, as my wife doesn't have debt in her name, and the house is only 

in her name.

 

So I have a few questions, my score is already low 500 range, will it go much lower?

Will I ever be able to get a chase card or amex?

Anything else I need to do?

 

Also can the chapter 7 be removed before the 10 years thorugh a credit repair?

 

Thanks for the help!

 


No.  It MIGHT drop off a few months early but thats about it; TU will sometimes drop it 6 months prior to the 10 year mark if you request it.  The other 2 generally 1-3 months early.

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In second year post 13 DC (12-28-15)
Entered garden 05-19-2017 CLOSED ON MY NEW HOUSE 5/17/17!!!!

Community Leader
Valued Contributor

Re: New to Bankruptcy and very nervous


consulting2017 wrote:

Hello thinking about this for months, 

I finally decided I have to file for chap 7 non consumer bankruptcy.

I have credit cards with all the major banks, mulitple chase, multiple amex, discover, citi , citi best buy, barclay 

and then a few business loans and terms with a few of our vendors.

The business went out of business earlier this year, and I was trying to keep my head above 

water, but it was becoming impossible to make even minimal payments. All of these were business debts.

 

I am filing the BKR in my name only, as my wife doesn't have debt in her name, and the house is only 

in her name.

 

So I have a few questions, my score is already low 500 range, will it go much lower?

Will I ever be able to get a chase card or amex?

Anything else I need to do?

 

Also can the chapter 7 be removed before the 10 years thorugh a credit repair?

 

Thanks for the help!

 


First, credit repair is pretty much a scam, if something is reported correctly on your credit report - like your BK filing and accounts included in the BK - then they cannot be removed. The CH7 will stay on your report for 10 years, maybe removed a few months early.

 

Second - No Amex, if they have to write off a balance they never forgive and keep very good records. Chase - maybe, after a very long time. Ditto Discover, Barclays, Citi. Capital One would likely be your best bet to start rebuilding credit.

 

If the house is in your wife's name only and she has no debt is there a mortgage on the house? If so I assume in your name?


Fico 08: 720/721/719 TU/EX/EQ
Valued Contributor

Re: New to Bankruptcy and very nervous

There has been anecdotal evidence of AMEX forgiving after 10 years if they were IIB, same with Chase.  There are plenty of card issuers out there, I wouldn't worry about anyone specific.  I am in the same boat as you so I know exactly what you're going through.  Just hang in there -once you file it will be weight lifted from your chest.  

Starting a whole new chapter
Established Contributor

Re: New to Bankruptcy and very nervous


consulting2017 wrote:

Hello thinking about this for months, 

I finally decided I have to file for chap 7 non consumer bankruptcy.

I have credit cards with all the major banks, mulitple chase, multiple amex, discover, citi , citi best buy, barclay 

and then a few business loans and terms with a few of our vendors.

The business went out of business earlier this year, and I was trying to keep my head above 

water, but it was becoming impossible to make even minimal payments. All of these were business debts.

 

I am filing the BKR in my name only, as my wife doesn't have debt in her name, and the house is only 

in her name.

 

So I have a few questions, my score is already low 500 range, will it go much lower?

Will I ever be able to get a chase card or amex?

Anything else I need to do?

 

Also can the chapter 7 be removed before the 10 years thorugh a credit repair?

 

Thanks for the help!

 

----------------------------------------------------

 

Read this entire thread... http://ficoforums.myfico.com/t5/Bankruptcy/Life-is-Good-After-Bankruptcy-7-Keep-the-Course-Keep-the-...

 

Your score will probably go up not down if you have been missing payments and getting judgements.

 

6 months after BK is discharged you score will def be higher than it is now.

 

No, you probably will not ever get a Chase or Amex if you burned them especially.

 

The worst time is now.  It only gets better once the pressure is off.

 

Within 4 years of BK I opened every credit card in my signature plus some others, got a 2.49% car loan with no money down, and my credit score hovers around 700.

 

The BK will stay for 10 years, but its impact gets less and less with time.

 

I had 3 unsecured credit cards with $3k - $10k limits within the first year after BK.

 

YMMV but there is light at the end of the tunnel.  Hang in there.

credit rebuild started 01/01/14 ..... $100k goal achieved 10/01/17
currently in the garden with $125k total of unsecured credit

     $30,000          $25,500         $23,750           $9,000            $3,300            $1,800            $17,000           $10,000
Regular Contributor

Re: New to Bankruptcy and very nervous


consulting2017 wrote:

 

So I have a few questions, my score is already low 500 range, will it go much lower? 

 


It may, but most of the damage done to your credit score is done before the BK. My scores actually rebounded pretty substantially as soon as I filed. I went from a lowest score of 483, to scores of 501-571 in a span of 2-3 months. (That 501 - TU doesn't care for me, apparently.)

 

You see tales of people rebuilding to substantial scores (mid 600s, anywhere in the 700s) within a year or two, and even some people reaching higher after several years. There's a recent thread where someone's score jumped to 843 because their BK dropped off their report (they did some solid rebuilding the 10 years in between!) So the BK does impose a ceiling, however you've already hit the floor... no use worrying about the ceiling when you just need some help getting up in the immediate term, you know?

 

GL

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

Re: New to Bankruptcy and very nervous

Thanks for all the advice.

My BKR is being filed this week..