Valued Contributor
Posts: 1,157
Registered: ‎01-22-2008
Re: Considering BK? FICO told me if you file BK paying your bills on time won't help you

After our BK, accounts that had zero balances and that we didn't include in our BK became IIB all on their own.  Now becoming a derog account when in fact it wasn't.  I can understand your frustration on that.  BUT if you can keep your bills current up until filing the road BACK from BK is much easier.  Also, when it comes to a lender, or even a landlord, manually looking at your credit reports and seeing all of your on time payments up until the date of filing, that looks much better for you.  We in fact had a landlord who asked what our credit history was like when we went to rent a home.  We told him we had the bk.  He said he wasn't worried about that as long as everything up to that point was good.  And I also think that when repairing afterwards, writing a GW to an account that was in good standing prior to the BK will give a slight advantage in getting them to make some gw adjustments.  IMO, if you can still pay your bills, do it.  Our bk lawyer actually did instruct us to stop paying bills and save our money (including our mortgage which was current), we chose not to listen to that advice even though he was a very good bk atty.  Getting credit afterwards was much easier and not as stressful as some of the posts I read here. 

CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (05/11/16): EQ 679 TU 650 EX 668 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($2700) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16