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Established Member
Posts: 57
Registered: ‎05-23-2008
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Re: Bankruptcy FAQs

[ Edited ]
You don't have to be deliquent to file.  I was up to date with all my bills when I filed.  In fact when I filed, I hadn't been late on a bill in 6 years.   It also doesn't take a month to file the bankruptcy.  What a lawyer most likely will do, is to tell you to stop making payments once the bankruptcy is filed.  The time from the date of filing to your court day might very well be a month.  That is about how long it took me from filing date to court date.
Message Edited by sgtm7 on 12-06-2009 05:17 AM
New Visitor
Posts: 2
Registered: ‎03-22-2010
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Re: Bankruptcy FAQs

I filed bankruptcy which shows on my credit report as well as all the creditors I included in my bankruptcy.   How can I get a double wammy for bankruptcy and my credit history?  My bankruptcy was a chapter 13 and although I paid 90% of the money I owed back, It still affects my credit almost as bad as if I would have filed for chapter 7 or chapter 11, at least then I would not have paid any back.  So much for trying to do the right thing, I filed in 2005, and I still have a score below 640. 

Established Member
Posts: 57
Registered: ‎05-23-2008
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Re: Bankruptcy FAQs

"So much for trying to do the right thing, I filed in 2005, and I still have a score below 640."

 

 

Yes, it can seem that way with a Chapter 13.  I filed in 2005 also.  Discharged in May 2009.  My credit would be in better shape now if I had filed a Chapter 7 in 2005.  I would be 4 years post discharge, rather than less than 1 year post discharge.  If you are talking about your mid score, then less than 640 doesn't sound too bad. You only need about a 620 middle score to get a FHA or VA mortgage.  Which is all that matters for me, because I pay cash for everything else.   My middle score is around 625.  I am only guessing though.  Since you can't get an Experian FICO, to be on the safe side, I assume that the lowest of the scores I do have available is my middle score.  If I am wrong, and my Experian is actually higher than my lowest, then that is all good.

Valued Member
Posts: 47
Registered: ‎04-04-2008
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Re: Bankruptcy FAQs

With today's credit market it's hard to either keep your score good or begin rebuilding your score after a chapter 7, it's only be a few months. I refuse any credit that is offered in the mail, especially those from car dealers who keep begging me to rebuild etc.

I don't trust the  economy still, feel doubtful and never want to go through that humiliation ever again with a chapt 7 and have the creditor glaring at you as if you had a ball charging up a storm and decided to go belly up. No thanks.  I'm going to chose carefully who I wish to deal with and limit what I have. It was too painful and I never want to feel like that again.

 

 

 

 

New Member
Posts: 2
Registered: ‎04-30-2010
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Re: Bankruptcy FAQs

I filed Chap. 7 bankruptcy in April 2004.  It was dismissed because I did not have enought assets to proceed in Nov. 2004.  How can I get the 3 bureaus to remove this from my credit report.  I have been denied credit based on the filing even though nothing was discharged!!!  I subsequently re-mortgaged my home and paid off credit card debts at negotiated amounts.  These are listed as "0" balance but with a notation "charge Off".  How can I clean up my credit report?

Moderator Emeritus
Posts: 4,469
Registered: ‎12-31-2008
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Re: Bankruptcy FAQs

Hi firecraker,


Glad you're here.  This is a great place to learn how to rebuild credit.  First, your questions:

 

 


firecraker wrote:

I filed Chap. 7 bankruptcy in April 2004.  It was dismissed because I did not have enought assets to proceed in Nov. 2004.  How can I get the 3 bureaus to remove this from my credit report. 

Dismissed bankruptcies will continue to report on each CRB for ten years.   If you filed, it will report; either as dismissed or discharged. 

 

I have been denied credit based on the filing even though nothing was discharged!!! 

There are several companies that will offer you credit even with a BK on your report, but not all will.  Check out BK Friendly Credit Cards Listed.

 

 I subsequently re-mortgaged my home and paid off credit card debts at negotiated amounts.  These are listed as "0" balance but with a notation "charge Off". 

As long you you negotiated a payoff amount, your CR can list them as a charge off.  That means they had to charge off the part of the account that was not paid.

 

How can I clean up my credit report?

Spend some time on the "Rebuilding My Credit" forums.  If your BK was from '04, your scores can be in the healthy 700's. 


Hope that's somewhat helpful.  There's lots of folks on these forums that have been in your shoes, and lots of helpful info here. 

Just puttin' syrup on something, don't make it pancakes.
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New Member
Posts: 2
Registered: ‎04-30-2010
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Re: Bankruptcy FAQs

Thanks beamMEup.  Lots of good information.  It seems  unfair that if the bankruptcy did not go through the credit bureaus can still report it for 10 years.  When the collection calls became incessant I bit the bullet and mortgaged my house to the hilt in order to satisfy my creditors.  My house would have been paid for in a couple of years.  Now I have a 30 year mortgage again!  I do not have any Visa, MC, Amex etc.  Only 2 store cards and 2 gas company cards.  Should I try for a major cc? 

 

I currently have scores in the 700's, mid is 729.  I want to look into refinancing my house to lower my interest rate and get out of an ARM.  I've been in this for 3 years and am now past the penalty phase.

 

I also have a child in college and will need to co-sign on loans.  We tried CITI and they turned us down. That's why this whole thing started trying to get my report cleaned up.  With the decline in housing prices my LTV is not too good so I won't be able to take on more debt to cover the tuition.

 

Any suggestions would be appreciated. 

Moderator Emeritus
Posts: 4,469
Registered: ‎12-31-2008
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Re: Bankruptcy FAQs


firecraker wrote:

Thanks beamMEup.  Lots of good information.  It seems  unfair that if the bankruptcy did not go through the credit bureaus can still report it for 10 years.  That's a common response.  Don't take it personally.  It's that mathematically, those who have filed (whether they are dismissed or discharged) are more likely to have a major delinquency in the future.  That's just what FICO does - it's a mathematical algorithm.  We are not our FICO scores Smiley Wink   We kind of have to separate ourselves and look at it rationally rather than personally.  I have a BK reporting, as well, so I know how it feels.  Something about seeing it in print and associated with your name can shake anyone up.  Don't let it.  Just take it as something you need to be aware of, and know that the more information you have, the better you can manage your FICO score and how that BK reporting impacts you.  

 

I do not have any Visa, MC, Amex etc.  Only 2 store cards and 2 gas company cards.  Should I try for a major cc? 

FICO likes you to have a bank/national credit card company account.  It can be a cc, a heloc, or ploc.  It's FICO Reason Code #3.  When we app'd for a refi, our loan officer checked to be sure we had a bank/nccc for its FICO score advantage.  When I opened my first bank card, I saw a 20 point increase, when DH opened his, he saw a 29 point increase.  It was, however, also our first current cc reporting, so your mileage will vary.

 

I currently have scores in the 700's, mid is 729.  As MVV says, “One thing I will ask is where did you get those scores? No one has been able to pull their own Experian FICO score since last February. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myfico. I suggest you do an internet search for "myfico discount codes" to save a little money. You can also purchase your Equifax score at www.equifax.com and your Transunion score at www.transunioncs.com.” The biggest problem with other scores (FAKO scores) is they do not correlate with and are not predictive of FICO scores."

 

I want to look into refinancing my house to lower my interest rate and get out of an ARM.  I've been in this for 3 years and am now past the penalty phase.  We did our refi five months after CH 13 BK discharge.  We also got out of an ARM, and went traditional.  Our BK was really not an issue, even that early on.

 

I also have a child in college and will need to co-sign on loans.  We tried CITI and they turned us down. That's why this whole thing started trying to get my report cleaned up.  With the decline in housing prices my LTV is not too good so I won't be able to take on more debt to cover the tuition.

Check out the thread on Education Loans.  All of our children have graduated or are currently attending college.  We have been very happy to help them in myriad ways, but we have not co-signed for their education loans.  They have all done wonderfully.  Everyone's situation is different, but if you read and post your education loan concerns there, you will receive excellent feedback.

 

Any suggestions would be appreciated. I hope that helps!  Best wishes.


 

Just puttin' syrup on something, don't make it pancakes.
New Member
Posts: 7
Registered: ‎07-08-2008
0

Re: Bankruptcy FAQs

[ Edited ]

Firecraker

 

Can't you get a secured credit card at a small local bank or credit union?  All you have to do is start getting credit back.  It won't take long, and a secure credit card is easiest.

New Visitor
Posts: 2
Registered: ‎04-24-2011
0

Re: Bankruptcy FAQs

I filed BK in 8/2008. A couple of the credit cards included in the bankruptcy still have late payments and key derogatories on my credit report. Is this allowed? I was under the impression that once it was included in bankruptcy the payment information was gone and only the fact that it was included in bankruptcy remained.

 

any insight into what i should do is greatly appreicated!

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