topic Re: Filing bankruptcy with no late payment in Bankruptcy

Filing bankruptcy with no late payment

suzanony — Thu, 16 Mar 2023 19:16:51 GMT

Hello all,

I tried to search for this answer but couldn't find this topic covered. I'm going to need to file soon. As of today I have no late payments but that's getting near to impossible to maintain. My question is if filing with no lates will help increase my score after bankruptcy any faster than if there were late payments.

Thank for helping

Re: Filing bankruptcy with no late payment

Horseshoez — Thu, 16 Mar 2023 20:47:18 GMT

@suzanony wrote:
Hello all,

I tried to search for this answer but couldn't find this topic covered. I'm going to need to file soon. As of today I have no late payments but that's getting near to impossible to maintain. My question is if filing with no lates will help increase my score after bankruptcy any faster than if there were late payments.

Thank for helping

Maybe a few points, that said, the Public Record of the bankruptcy will be the biggest drag on your scores, 10-years for a Chapter 7 or 7-years for a Chapter 13. Most (all?) bankruptcy attorneys tell you to stop paying before you file.

Re: Filing bankruptcy with no late payment

Creditwiser — Thu, 16 Mar 2023 23:24:54 GMT

Since you have no lates or derogs ( assuming ) , your scores are being calculated by UTL & Credit mix. Therefore your score could and likely will fall la bit less than someone who files with derogs & lates having already reported. If you file, your initial goal will be to have all accounts IIB on your reports. When that happens, it wont show and shouldnt show payment history anyway.

Re: Filing bankruptcy with no late payment

Lurker22 — Fri, 17 Mar 2023 11:13:01 GMT

It'll most likely make the rebuilt easier

Re: Filing bankruptcy with no late payment

SUPERSQUID — Fri, 17 Mar 2023 12:48:42 GMT

@suzanony wrote:
Hello all,

I tried to search for this answer but couldn't find this topic covered. I'm going to need to file soon. As of today I have no late payments but that's getting near to impossible to maintain. My question is if filing with no lates will help increase my score after bankruptcy any faster than if there were late payments.

Thank for helping

In my case I filed bk7 when i was current with all my previous cards but somehow after the bk7 was discharged 11 lates showed up on my reports, head scratcher but i read that trying to correct that issue may make things worse,, so i let it be, ymmv

The lates really havent been a stumbling block as 3 years post bk7 dc i have almost 90k in unsecured limits with low income.

Re: Filing bankruptcy with no late payment

Horseshoez — Fri, 17 Mar 2023 12:59:16 GMT

@SUPERSQUID wrote:
@suzanony wrote:
Hello all,

I tried to search for this answer but couldn't find this topic covered. I'm going to need to file soon. As of today I have no late payments but that's getting near to impossible to maintain. My question is if filing with no lates will help increase my score after bankruptcy any faster than if there were late payments.

Thank for helping
In my case I filed bk7 when i was current with all my previous cards but somehow after the bk7 was discharged 11 lates showed up on my reports, head scratcher but i read that trying to correct that issue may make things worse,, so i let it be, ymmv
The lates really havent been a stumbling block as 3 years post bk7 dc i have almost 90k in unsecured limits with low income.

Like you, I had several accounts which were current when I filed my Chapter 13, all of my accounts, current or not, started reporting with both IIB and as late after my filing. Honestly, I don't see how being current on all accounts when one files will make much more than a point or two of a difference in one's scores or the speed of their recovery.

Re: Filing bankruptcy with no late payment

FireMedic1 — Sat, 18 Mar 2023 08:53:38 GMT

@suzanony wrote:
Hello all,

I tried to search for this answer but couldn't find this topic covered. I'm going to need to file soon. As of today I have no late payments but that's getting near to impossible to maintain. My question is if filing with no lates will help increase my score after bankruptcy any faster than if there were late payments.

Thank for helping

Welcome @suzanony

More than likely the lawyer will tell you to quit making payments. If your going to file you have to look broke. If you can pay even if theres no room for much. It will look better. Yes it seems strange. Just a beware it may come up thing.

Re: Filing bankruptcy with no late payment

madmann26 — Sat, 18 Mar 2023 19:39:52 GMT

There's no harm in talking to an attorney.

At the end of the day, you have to do the "means" test, which the attorney will do while you're sitting there to determine if the court will allow the filing.

Re: Filing bankruptcy with no late payment

suzanony — Sat, 18 Mar 2023 19:50:48 GMT

I've taken the mean's test online. I pass.

Re: Filing bankruptcy with no late payment

suzanony — Sat, 18 Mar 2023 19:51:19 GMT

Thanks so much for your help!

Re: Filing bankruptcy with no late payment

suzanony — Sat, 18 Mar 2023 19:51:45 GMT

Thanks!

Re: Filing bankruptcy with no late payment

suzanony — Sat, 18 Mar 2023 19:52:50 GMT

I appreciate everyone's responses. It's been a big help.

Re: Filing bankruptcy with no late payment

madmann26 — Sat, 18 Mar 2023 20:02:36 GMT

@suzanony wrote:
I've taken the mean's test online. I pass.

When you file, the attorney has a paper form that he/she has to fill out and submit with your filing. It will still have to be done again.

Re: Filing bankruptcy with no late payment

suzanony — Sat, 18 Mar 2023 20:07:32 GMT

I understand that. I was clarifying that I know I'm eligible to file.

Re: Filing bankruptcy with no late payment

KR66 — Tue, 21 Mar 2023 14:42:59 GMT

Back in 2005, we were not late on anything prior to filing our Chapt 13. As a result, manual reviews of our credit reports resulted in a couple lenders giving us a chance. They said they could see everything had been fine up until a specific point in time. I can't speak to whether or not it helped our credit scores at all.

YMMV