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Established Member
Posts: 15
Registered: ‎03-05-2007
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bk question

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I am in the process of filing for bk. I have $35000 debt in medical bills. My credit score is in the mid 5's and im assuming it will go down to the 3's after i file the ch7 bk. my question is how long does this stay on my record and also what can i do to get my score in the 6's asap. i was thinking i can make a big down payment on a new car that i need but am worried i wont get approved because of the bk. or should i wait a few months and get a cc and try to build my credit up that way. of the cc what cc should i try to get is their ones out there that will give me a small limit even though i have an bk. would the best way be to use a little and pay it back right away or pay min over a few month period. also do i need to send a copy of my bk7 papers to the 3 credit bureus or they get it themselves. thanks in advance.

Message Edited by biglearner on 08-21-2007 12:51 PM
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
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Re: bk question



biglearner wrote:
I am in the process of filing for bk. I have $35000 debt in medical bills. My credit score is in the mid 5's and im assuming it will go down to the 3's after i file the ch7 bk. my question is how long does this stay on my record and also what can i do to get my score in the 6's asap. i was thinking i can make a big down payment on a new car that i need but am worried i wont get approved because of the bk. or should i wait a few months and get a cc and try to build my credit up that way. of the cc what cc should i try to get is their ones out there that will give me a small limit even though i have an bk. would the best way be to use a little and pay it back right away or pay min over a few month period. also do i need to send a copy of my bk7 papers to the 3 credit bureus or they get it themselves. thanks in advance.

Message Edited by biglearner on 08-21-2007 12:51 PM

 
Your BK will be reported to all three bureaus automatically.  As far as your scores going down to the threes, you are probably looking at the fours.  Make sure you include all bad debt by pulling a 3 in 1.  That being said.  recovery from BK is a process.  You will have to pay through the nose for any financing you get shortly after.  I think I got 21% on my car.  But had no choice the one I was driving died.
 
Once the bleeding stops, you will be able to start rebuilding your credit but dont wait too long like I did.  Invest in a secured card as soon as you can get one.

New Contributor
Posts: 76
Registered: ‎04-17-2007
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Re: bk question



Brammy wrote:


biglearner wrote:
I am in the process of filing for bk. I have $35000 debt in medical bills. My credit score is in the mid 5's and im assuming it will go down to the 3's after i file the ch7 bk. my question is how long does this stay on my record and also what can i do to get my score in the 6's asap. i was thinking i can make a big down payment on a new car that i need but am worried i wont get approved because of the bk. or should i wait a few months and get a cc and try to build my credit up that way. of the cc what cc should i try to get is their ones out there that will give me a small limit even though i have an bk. would the best way be to use a little and pay it back right away or pay min over a few month period. also do i need to send a copy of my bk7 papers to the 3 credit bureus or they get it themselves. thanks in advance.

Message Edited by biglearner on 08-21-2007 12:51 PM

 
Your BK will be reported to all three bureaus automatically.  As far as your scores going down to the threes, you are probably looking at the fours.  Make sure you include all bad debt by pulling a 3 in 1.  That being said.  recovery from BK is a process.  You will have to pay through the nose for any financing you get shortly after.  I think I got 21% on my car.  But had no choice the one I was driving died.
 
Once the bleeding stops, you will be able to start rebuilding your credit but dont wait too long like I did.  Invest in a secured card as soon as you can get one.



You mention making "a big down payment" for a car... Don't do this just before or after filing, since any large payments made (or large debts incurred) just prior to filing up until discharge - to any recipient other than your debts - may be construed as BK fraud.
 
Also, I filed in 2004, and my scores were in the high 600's within two years. It sort of depends on where you start - I think mine didn't dip that low when I filed because I had a long and very good history, and I didn't wait long to file once I realized there wasn't any other way out (I was downsized three times in one year, and it just became impossible). I didn't have anything in collections, etc., so I don't think I had any black marks on my record except for the three months prior to filing. But even in your situation, you may well be offered cards before your BK is even discharged.
 
There is a lot of information on these boards about rebuilding credit, BK friendly CC, etc. You might start by just looking around at what has already been posted.

 
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
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Re: bk question

Thanks baileyboy for bringing up the fraud aspect.  I was so broke and in trouble by the time I filed, that didn't even occur to me.  Kept telling myself I could catch it up and make good.
New Contributor
Posts: 76
Registered: ‎04-17-2007
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Re: bk question

The classic "throwing good after bad"... most people do that because it seems like the right thing - most of us who've filed want to pay the debt. And it is the right thing - if you can get it paid off and still have a life. I tried hard NOT to file, but with 40K+ in CC, and no job - for the 4th time in just over a year - I gave up. Wish I hadn't had to do it, but glad I did when I did... So it goes.
 

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