when will bk7 hit fico score

[Anonymous]

Hello,

I filed BK7 last week and my 341 hearing is Nov. 25th.  On October 16th the bankruptcy public record showed up on my credit report.  Does the hit to my fico score happen now or when it is discharged or both.  Thanks

[Billybob_TX]

It will take a while for your reports to "report" everything correctly. My wife's EQ report never even showed the BK till 2 months AFTER discharge. Wouldn't worry about it till discharge is near, you have enough on your plate right now.

[0REDSOX7]

You'll take a hit when the public record hits your credit report.

Then, depending on your payment history prior to filing, you may see your scores go up from that point or drop a little bit more. TU and EQ delete your payment history - whereas EX will keep it.

You'll see no changes in score from once the actual public record hits your report to when your BK is actually discharged.

[CH-7-Mission-Accomplished]

I would not wait one second to get started on rebuilding.  The day after I filed I sent out disputes to all three CRA's with a copy of my schedule from the petition listing creditors and disputed each and every creditor listed on the schedules.  I also at the same time sent out a letter to each of the creditors from the schedule and told them that they needed to update status to included in bankruptcy. So I attacked it from both angles.  Then get copies of all three credit reports (after 30 days) and make sure all accounts report as zero balance and "iib."  Also, doublecheck your credit reports and make sure there is nothing that has cropped up (like a new collection) since you can still get your attorney to list them by filing an amendment.  I would immediately get a secured credit card for like $200 (from Open Sky or a local credit union that doesn't check credit for secured cards), and open a new card right away.  Just be sure you are using funds that are new income since filing or using funds that were disclosed in your bankruptcy asset (bank account) balances.  If you don't have an installment loan surviving the BK 7, get a share secured loan from a local CU, as well.  I did these things and by the time my BK discharged, my score JUMPED 100 points from what it was the day before I filed.  People are going to want to see 12 to 24 months of good payment history post BK, so the time to start getting those new on time payments is TODAY!

[StartingOver10]

I disagree about getting new credit before your discharge.

Let the process work the way it is supposed to work. Don't open up new credit accounts before discharge and especially not before your 341.

Begin your rebuilding process with discharge in hand by cleaning up your credit reports.

You will see the big jump in scores too without risking your BK.

[CH-7-Mission-Accomplished]

Speak to your lawyer if you are concerned about risk.  There is NOTHING in chapter 7 bankruptcy that prohibits opening new credit after filing and before discharge.  Nothing.  (Different for a 13).  Waiting four months to begin rebuilding will set you back 4 months.  IMHO, very bad advice, especially if you are trying to get to 700 FICO in 24 months.  Again, using funds that were disclosed in your bankruptcy schedule (funds in the bank already) or using funds that come in from earnings post filing are just fine.  You can wait if you like, but the risk is imaginary.  (Confirm with your lawyer).

[0REDSOX7]

It's an issue if your trustee asks if you've attemped to obtain new credit or will before discharge - you're under oath and you'd lie?

Clearly you didn't read the BK to 24 months thread because it starts with your discharge. Not all creditors will update your credit report that they have been IIB until discharge.

Many people here who had attorneys advised is explicitly not to apply for credit until discharge. Advocating this user do so is irresponsible.

Rebuilding isn't a sprint, it is a marathon.

I didn't apply for any credit until post discharge, and eight months out, I'm in the 670/680 range across all three - so it is possible to obtain sooner without the risk.

[CH-7-Mission-Accomplished]

I won't waste a lot more time arguing with the other poster.  You decide who to believe.

You do not sign anything after you sign the papers for filing.  There is no affirmation of a promise to not open any new credit between filing and discharge.  None.  (Not true for a 13).  In the 341 hearing they ask you if what is on your schedules is true and do you swear it.  The answer is yes, it's true.  There is no point where you are lying to the trustee.  (If the trustee asks you, "Have you opened any new credit lines since filing" you should answer yes.)

OP, the nice thing about these boards is you can weigh the advice and choose to follow it or not follow it and people often disagree.  You have been presented with two sides of this point.  You should weigh what you are most comfortable with and follow that path.  Challenge people to prove what they are saying.  If the other poster thinks there is someplace in the BK 7 documents that prohibits opening new credit, please cite to it.  And if there is a stage where you would be lying to the trustee by having opened new credit, please point where you are lying -- what form?  what question?  It ain't there.  

(If you had been earning $500/month for the year prior to filing, and then earned $25,000 in the month between filing and the 341 meeting, you also would not have to state that.  It is irrelevant because the only issue is what occurred up to the filing date.)

[0REDSOX7]

The income piece is again, bad advice.

If you obtain a raise after filing and the trustee asks if everything in your petition is true and correct and you say yes, you just lied under oath. Why? Because there is part of your petition that calculates your income in the future (60 months I believe) and compares that to your expenses (which should show a net loss)

That's why your petition asks if you anticipate any changes in income. If you knowingly come in to income before being discharged, you have to disclose it. Plain and simple.

That's why I had to disclose that my wife received a raise after we filed, thankfully was insignificant and didn't impact our case.

[CH-7-Mission-Accomplished]

I'm just curious of the other poster is a lawyer.  My ex-husband of one years is a bankruptcy lawyer with 35 years' experiece.  I have asked him each of these qustions and he has given me the answers.  He is one of a six-attorney firm that practices exclusively consumer BK law.  He concurse with me 100%.  If you filed BK 7 on Thursday and next Thursday Grand Grandma dies in a plane crash and leaves you 20 million, it is iirrelevant.  You are required to swear that the petition was correct on the day it was filed.  It is a snapshop in time.  This other poster is likely giving advice based on his oer credit understanding, but it is legally incorrect.  Once again, it matters not whether I am correct or the other poster is correct, but you should ask your lawyer.  Chat boards are filled with bad advice from well meaning people.  Cite to the code provisions if you think there is a duty ti dislclose new facts after filing.  Unless you new granny was going to have that plane crash after you filed and before you were discharged, it is COMPLETELY IRRELEVANT to the case.  Have you ever herad of someone being asked to provide a new schedule of income after the fling date?  It doesn't happen.  A creditor who might object to an inheritance would have an affirmative duty to provide that you KNEW before signing the filing documents that you were coming into a big inheritance (like granny had had terminal cancer and two months to live).  Follow your heart on this, and choose to folow the advice you like, but the other poster is simple dead wrong.