Contributor
carolina98
Posts: 90
Registered: ‎11-12-2010
Re: To BK or not to BK?!

I concur. If you can avoid BK, do so.

 

I found out after BK that how many accounts you includle in BK affects your credit score. If you have any small accounts, it may be worth it to pay them off, based on what I've learned.

 

I also found out after BK that keeping bills paid on time doesn't help your credit score when you file BK. Like you, I struggled but kept my bills paid up to BK. Six months after BK, I had a 599 FICO Transunion score and a 623 FICO Equifax score.  FICO's anaylsis said I had the low scores because of a bad payment history, which was not at all true. I had an excellent payment history. But Transunion and Equifax does not show my excellent payment history for the accounts that were included in BK., just that they were IIB. That in itself is degrogatory, resulting in the low score and assessment of bad payment history.

 

I intend to challenge FICO on this assessment of late payments, which is inaccurate. I have zeor late payments showing on my credit report. And my credit report 10 days after BK also did not have late payments. Only one of my 11 accounts went late with BK (30 days). All my other accouts were paid on time up to BK, but it still didn't help my credit following BK. My BK attorney told me not to pay my accounts if I was going to file and that it wouldn't help me, but I didn't listen to him.  I could have taken the $2k I used to pay my credit cards for a couple of months and used it to pay for the BK,  and it appears my credit score would have been the same.