topic Please Enlighten Me.... in Bankruptcy

Please Enlighten Me....

Anonymous — Tue, 30 Jan 2018 20:57:30 GMT

So from my perspective, having never filed BK... i'm curious about a few things..

I started rebuilding on 4/17 and from clawing and scratching my way back up just barely got to 630 across the board... and then i see a post about someone 12 mos. out of BK with a 740 score and getting approval for cards with a high SL i couldnt get.

Life isnt fair, i get that. But help me understand how that is even possible and why its viewed as the cowards way out, and yet from what i have seen it surely looks like the ultimate way to cheat the system and have it all.

Re: Please Enlighten Me....

Anonymous — Tue, 30 Jan 2018 03:59:18 GMT

From your cards signature, seem you in a good place OP, you have Navy up to $15k limit.

Also, your score within 8 months went up over 100 points across from all 3 CRA. That's FANTASTIC!

Starting Score: TU 504 EQ 525 EX 535 (4-4-17)
Current Score: TU 630 EQ 646 EX 639 & EQ9 705

I think you are in good direction tho. Every profile so diffrerent, we dont know if you have any lates, CO, collection or any degrog on your profile , we dont know your util on 1 card and all cards together, etc, etc, etc and much more.

Just be patient!

Re: Please Enlighten Me....

Anonymous — Tue, 30 Jan 2018 04:16:02 GMT

wrote:
From your cards signature, seem you in a good place OP, you have Navy up to $15k limit.
Also, your score within 8 months went up over 100 points across from all 3 CRA. That's FANTASTIC!
Starting Score: TU 504 EQ 525 EX 535 (4-4-17)
Current Score: TU 630 EQ 646 EX 639 & EQ9 705

I think you are in good direction tho. Every profile so diffrerent, we dont know if you have any lates, CO, collection or any degrog on your profile , we dont know your util on 1 card and all cards together, etc, etc, etc and much more.

Just be patient!

Thank you and i understand all of the profile differences, but when i saw that 12mo. out of BK with a 740... which is about the same amount of time i have been working on mine and i'm nowhere near that... they file BK and have a clean-ish record after DC and get whatever.. i dont know if i'm explaining myself well enough.. hopefully any of that makes sense.

Re: Please Enlighten Me....

Anonymous — Wed, 31 Jan 2018 02:27:32 GMT

wrote:
So from my perspective, having never filed BK... i'm curious about a few things..

I started rebuilding on 4/17 and from clawing and scratching my way back up just barely got to 630 across the board... and then i see a post about someone 12 mos. out of BK with a 740 score and getting approval for cards with a high SL i couldnt get.

Life isnt fair, i get that. But help me understand how that is even possible and why its viewed as the cowards way out, and yet from what i have seen it surely looks like the ultimate way to cheat the system and have it all.

You state that you didn;t fike BK but clawing and scratching your way back. From What? Chargeoffs?

Who has a 740 score 12 months out of BK?

Re: Please Enlighten Me....

thornback — Tue, 30 Jan 2018 05:04:28 GMT

I feel as though you may not understand what happens after filing for bankruptcy. Talk about having to claw your way back...

https://twocents.lifehacker.com/what-really-happens-when-you-file-for-bankruptcy-1781919974

That quick read may offer a new perspective seeing as your fight to overcome collections and / or charge offs hasn't resulted in the liquidation of all of your assets, and time alone can, in most cases, relieve you of your obligation to actually pay what you owe.

Re: Please Enlighten Me....

Anonymous — Tue, 30 Jan 2018 14:40:17 GMT

Your right, bankruptcy can seem unfair.
We bounced back fairly easily as we had higher income and zero lates at the time of filing. I suspect it is harder to climb back if the income is low to begin with. You remain a high credit risk. Just my personal observation.

Also this article says credit offers come after the involved accounts fall off, they came right away as did the car loans as they know you cant file again for 10 years. New home came at 3.5 years post BK. Scores never went below 640. Intest on the first (mid bk filing) auto loan was 10.5% so a bit high but the big fat lemon car that was unusable was the primary reason for filing (suzuki no longer manufactuers cars). 5 years out 0% on new car and 5% on second car (purchased in 2013).

Re: Please Enlighten Me....

Anonymous — Wed, 31 Jan 2018 01:05:11 GMT

I agree that those that bounce back seem to have experienced a sudden and significant loss of income or increase in liability and that the bankruptcy is a blip in their overall credit profile instead of a pattern of poor financial management. I paid my bills 14 years no lates right until I filed.
I think it’s a misconception that bankruptcy is a clean slate. All that payment history before you filed is still there. student loans are not dischargable and if there are zero late payments those accounts will continue to report open and in good standing i expect all that to factor in the score.
Bankruptcy is not a clean slate it’s a legal remedy to a hopefully temporary insolvency that can happen to people of all incomes and walks of life.
Your overall income and credit profile pre and post filing will determine how fast you bounce back.

Re: Please Enlighten Me....

Anonymous — Wed, 31 Jan 2018 02:24:32 GMT

wrote:
So from my perspective, having never filed BK... i'm curious about a few things..

I started rebuilding on 4/17 and from clawing and scratching my way back up just barely got to 630 across the board... and then i see a post about someone 12 mos. out of BK with a 740 score and getting approval for cards with a high SL i couldnt get.

Life isnt fair, i get that. But help me understand how that is even possible and why its viewed as the cowards way out, and yet from what i have seen it surely looks like the ultimate way to cheat the system and have it all.

It's not cheating the system. It's perfectly legal.

Re: Please Enlighten Me....

Anonymous — Wed, 31 Jan 2018 15:04:35 GMT

There are many things someone with scores in the 600s and no BK can do that someone with a 700 and a BK cannot.

Re: Please Enlighten Me....

Anonymous — Thu, 01 Feb 2018 02:34:31 GMT

That's why i started this thread.. to gain understanding. not saying the 12 months and then 740 wasnt rage inducing, but there is always another side to the story.

I still have alot of work to do on mine, and some stuff i'll have to wait until it times out.

Re: Please Enlighten Me....

C_DUBYA — Thu, 01 Feb 2018 20:07:24 GMT

I think its like everything else in this credit score journey. Very little makes TOTAL sense. Every persons situation is different, and lets not forget about the ease of lying on the internet. Someone said they are 740 1 year post BK? Who says its even true? But lets say it is, theres no way to battle the why him/why not me argument. Because thats all in details none of us know.

I am 5 months post BK -7 and my scores are 640, 627, 622. Someone else who is 5 months is higher, and another person is lower. Its all details.

Id focus on your scores and your goals and ignore what is around you.

Re: Please Enlighten Me....

tricie17 — Sat, 03 Feb 2018 15:32:50 GMT

Well let`s see if I can enlighten you. People have hicups in life at times and as mentioned every profile is different. This profile may have had issues that would not go away no matter what they did such as an upside down mortgage; unemployment; a failed business etc. I think you get the point!!. This was a way to clean the slate and begin anew. Let`s say a new job was taken or the chance to drop off a bad mortgage was given, all of this refreshed life could lead to a new thought pattern on credit. This is what bankruptcies do for people at all stages in their life. Now after reading these FICO forums gives the chance to move your credit forward at a remarkable pace. However, I must also say that some people will not file no matter their situation and will struggle to pull together their credit out of the dungeon which is okay but we must not argue another's profile because we do not know where that profile is in life and also the laws on bankruptcy are written for exactly these purposes. Sometimes in life the choice to file or not to file is stressful.