Member
powellfamily2009
Posts: 15
Registered: ‎09-08-2012
Re: Bankruptcy friendly credit cards
[ Edited ]

Hey MovingForward....

The reason for the conversion is because we added a 2nd child to the family this past year and the means test now allowed for the Chapter 7. The math made sense.....(3 more years of $300/month payments or discharge in 45 days and DONE!) I only had one Cap One card inculded in the original BK. My attorney told me that what I have now does not matter; unless I wanted to wrap them up in the conversion. The only thing that gets included in the conversion is the accounts that were originally included in the 13 filing from 2 years ago. The other thing about a conversion is that the filing date DOES NOT change. So at the most I am actually adding only 3 years to the time the report stays on my CR. Again, I'd rather pocket the 11k and deal with the BK on my CR for another 3 years. I feel like I'm doing a pretty good job of rasing my credit scores....

 

As far as my prospects under a 7 as opposed to a 13, I have personally been told by numerous creditors and read time and time again on this forum that a 7 is much more preffered because it's "over and done with" so-to-speak. My wife and I are tyring to re-finance our house and put my name on the note, and EVERY lender (BofA, Suntrust, Wells Fargo) that I have talked to said they absolutly will not approve while I'm in a 13, but will approve FHA as soon as I am discharged into a 7! It also seems as though people on the forum are having a much easier time obtaining credit when they are in the 7 as opposed to the 13. From a lenders stand-point, now it is going to look as though I am 2 years OUT of Chater 7 BK as opposed to 2 years into a 5 year Chatper 13 BK. Make sense?? Take it for what it's worth....

 

P.S. On all 3 of my CR's (Pulled today), the BK is listed as being a Chapter 7, so Barclays obviously saw something that they liked today that wasn't there 4 months ago when I was declined. 

Trans FICO = 660 (01/6/2013) Equifax FICO = 654 (01/6/2013) Experian PLUS = 656 (1/6/2013)
Wallet = AMEX Prepaid with $300 every 2 weeks deposited, Cap One (Formerly Orchard Bank) $500 CL in SOCK-DRAWER, Credit One Bank Visa $1000 CL in SOCK_DRAWER, Discover Matrix $300 CL in SOCK_DRAWER, Fingerhut Charge Account $300 CL in SOCK_DRAWER, and Barclaycard MC with $1300 CL
Goal.....To break 750-775 by the end of 2013
DId not reach my 2012 Goal of 700... :-((