Re: How to rebuild your score after a ch7 BK[ Edited ]
05-22-2012 03:34 PM - edited 05-22-2012 04:10 PM
Your lawer probably told you that "it doesn't make sense to pay the bills" when you're about to file, or that "the courts frown on people paying bills immediately before filing and may throw out our BK if you pay them". But that's beside the point. Yes, the lates will show until your filing date, with a KD on your discharge date.
However, if they are reported as IIB, those lates won't matter much, if at all.
If you included the paid off cards in your BK, then they were included in the BK and are IIB/Derog. If you didn't include them, the creditor most likely closed the account on their end (Account Closed by Credit Grantor), which is also a derog.
Also, if you didn't list "paid off" revolving accounts as creditors in your BK, you may have inadvertantly committed bankruptcy fraud*. I'm pretty sure that the law says you have to list "all creditors", not just the ones you owe money to. I'll check with an attorney friend, though I'm also pretty sure that if you used an attorney, he/she wouldn't have let you commit BK fraud.
The simple version is, anything before your BK (and included in the BK) doesn't matter much once the BK is there. Positive accounts that were closed prior to the BK will help you, but only a little. what REALLY matters is the date of your BK and everything that comes after it.
*I checked with my friend, it's against the law, but there doesn't seem to be a punishment for it unless you paid some creditors immediately before BK. Basically, you don't get to choose who gets your last $'s before you file.
Starting Score: ~470 preBK(8/2010)
Current Scores as of 8/2/13: EX 710, EQ 691, TU 709, all 3 LP for a Mortgage (TriMerge Report)
Goal Score: 700+ FICO across the board w/ my BK still on there (until 8/2020) - I think they're all already there... haven't had a bank pull a trimerge in quite a while.