topic Re: 30/60/90 hurt rebuilding after bankruptcy in Bankruptcy

30/60/90 hurt rebuilding after bankruptcy

Buildingalife — Fri, 10 Nov 2023 16:16:38 GMT

Hi Guys,

Currently, I have no lates showing on my credit report. Problem is I have so much debt and not enough income. If I file Chapter 7 or 13 does it hurt the rebuild process to let my now on-time bills go past due. Did anyone have a few 90 days late and recovered from Chapter 7 quickly.

Re: 30/60/90 hurt rebuilding after bankruptcy

JoeRockhead — Fri, 10 Nov 2023 16:23:02 GMT

Sorry, I'm not quite sure what you're asking... Have you already filed Ch 7 and are defaulting on new accounts, or are you considering Ch 7?

Re: 30/60/90 hurt rebuilding after bankruptcy

Horseshoez — Fri, 10 Nov 2023 16:28:21 GMT

@Buildingalife wrote:
Hi Guys,
Currently, I have no lates showing on my credit report. Problem is I have so much debt and not enough income. If I file Chapter 7 or 13 does it hurt the rebuild process to let my now on-time bills go past due. Did anyone have a few 90 days late and recovered from Chapter 7 quickly.

Basically a bankruptcy trumps all other baddies. Given a Chapter 7 will outlast any bad marks on your score, there really won't be a difference when you start to rebuild.

Re: 30/60/90 hurt rebuilding after bankruptcy

FireMedic1 — Fri, 10 Nov 2023 21:49:06 GMT

The BK lawyer will say quit paying your bills at least 3 months before filing. You have to look broke. Pass the means test and go from there. Look up your states means test amount. Under the amount its a 7. Over its a 13.

Re: 30/60/90 hurt rebuilding after bankruptcy

Jules215 — Sat, 11 Nov 2023 06:29:52 GMT

I filed on Oct 16 of this year and at the time of filing I think about 1/3 of my accounts had gone 30 days and the rest were current as of filing ( but obviously about to go 30 days )...I have no idea if the fact that I was still current on most of my accounts and had only 30 days late on the others is why my credit score hasn't plummeted in the way I expected and is currently rising again...About 1/3 of my accounts still show balances, so it will be interesting to see what happens when those finally clear out...My attorney had no problem with most of my accounts being current when I filed...I knew it was coming and quit using any credit cards at the beginning of July but continued to make payments until Sept., just in case something came up or I figured a way out.

Another weird thing that has happened is that while some accounts show 0 balance and IIB, some have been completely removed from my credit reports, mainly Comenity accounts...When that happened my score took a big bump up.

Re: 30/60/90 hurt rebuilding after bankruptcy

Jeffster1 — Sat, 11 Nov 2023 06:51:11 GMT

My own admittedly anecdotal experience is this:

I filed a 13 in April 2017. I got my DC in January 2021. I am less than 2 years post-DC. I had only a couple lates prior to my filing. I attribute my relatively fast rebuild, in part, to the fact that I did not have to clean up lates on my reports. The only issue was the BK. I was able to get into prime cards relatively quickly and even Amex (on who I also filed) took me back exactly 61 months post-filing.

At rhe time of my filing, I was completely up-to-date on my cards. My debt was current; it's just that I had too much of it. The situation was unsustainable. My income disqualified me from a 7, hence I filed the 13.

Re: 30/60/90 hurt rebuilding after bankruptcy

Horseshoez — Sat, 11 Nov 2023 13:32:01 GMT

Folks, there is zero evidence being current on most/all of one's accounts has anything to do with the speed of any subsequent rebuild. In my case I had lates, charge offs, and all manner of bad remarks, and my rebuild was both rapid and quite successful as my scores all hit 815+ once the bankruptcy fall off my reports in January of 2022.

Regarding mid-Chapter 13 scores, I found true FICO scores were somewhat depressed, however, the FAKO/Vantage scores from the likes of CreditKarma were all up in the low- to mid-700 range, so @Jules215, if that's where you're getting your scores from, you'd be well advised to ignore them.

Re: 30/60/90 hurt rebuilding after bankruptcy

Buildingalife — Sat, 11 Nov 2023 16:25:44 GMT

I want to file but wondering if I should keep making all of my payments until I file and how it will impact my rebuild later. Does having bankrupcy showing without any lates help to rebuild?

Re: 30/60/90 hurt rebuilding after bankruptcy

Buildingalife — Sat, 11 Nov 2023 16:31:49 GMT

I'm hanging on by a thread. My income is $90k plus $12k rental income. After taxes 5450 monthly. Hoping my expenses will put me into Chapter 7. I am going to make a new post and put all of my details and maybe the group can give me more insight if I will pass the means test.

Re: 30/60/90 hurt rebuilding after bankruptcy

Jules215 — Sat, 11 Nov 2023 16:35:07 GMT

Yes, I'm very aware of Credit Karma's scores not being the best to gauge off of.

But actually, it's my FICO score that's the "best" right now.

And by "best" I mean 610 give or take...The others within 20 of that...Not great, but I had prepared myself for upper 400's/lower 500's...I keep waiting to see if something else is going to lower it, but the BK filing has already hit, and every time an account is closed and says IIB it adds a few points...I don't know if when the actual discharge hits that will pull it down ( from what I've read of other people's cases that doesn't seem to be the case )...Also interesting is that some accounts that are showing as closed and IIB at the other 2 bureaus are not being reflected on Transunion yet, and that's where my lowest score is right now.

I really don't know as I've never done this before...Maybe I just prepared for the worst so anything better than that seems good to me. Lol

Re: 30/60/90 hurt rebuilding after bankruptcy

Buildingalife — Sat, 11 Nov 2023 16:35:09 GMT

This is good to know. My debt is outrageous. I am hoping to get a Chapter 7. I am going to post my detailed spreadsheet info any maybe you guys can give me some guidance.

Re: 30/60/90 hurt rebuilding after bankruptcy

FireMedic1 — Sat, 11 Nov 2023 18:14:56 GMT

@Buildingalife wrote:
I'm hanging on by a thread. My income is $90k plus $12k rental income. After taxes 5450 monthly. Hoping my expenses will put me into Chapter 7. I am going to make a new post and put all of my details and maybe the group can give me more insight if I will pass the means test.

No need for a new thread. Keep this one alive.

Re: 30/60/90 hurt rebuilding after bankruptcy

CosmicCash — Fri, 24 Nov 2023 22:13:22 GMT

@Buildingalife wrote:
I want to file but wondering if I should keep making all of my payments until I file and how it will impact my rebuild later. Does having bankrupcy showing without any lates help to rebuild?

Why would you keep making payments if you are going to file? You are throwing good money out to bad at that point. The fact of the matter is a bankruptcy stays on your report for 10 years, late payments for up to 7. The bankruptcy therefore will take precedence over any late payments so paying on-time won't really help you. To further try and make my point, bankruptcy is pretty much scorched earth when it comes to credit. Not the end of the world but it's a complete restart.

Re: 30/60/90 hurt rebuilding after bankruptcy

Rogue46 — Sat, 25 Nov 2023 20:10:02 GMT

I'd have to agree with the others it makes no difference if you continue paying or not your credit will tank once the bk is filed. The only thing you're doing by keeping up to date is throwing away money and possibly could be detrimental later on as another member mentioned you need to look broke when you file especially if you're pushing for a chapter 7

Re: 30/60/90 hurt rebuilding after bankruptcy

Streydog — Mon, 27 Nov 2023 16:18:44 GMT

A little late reply but here is my experience. I stopped paying my cards on 9/22 when I made the decision to file. I ended up having to wait to file due to increased wages from unexpected OT. By the time I filed I had 90-120 day lates. Up until 9/22 I was current, no lates, collections... I am not sure what my credit scores were at that point, probably in the low 600's due to being maxed out. I was able to get 2 cards before discharge, Capital 1 with $3K and Mission Lane $3K limits. No AF but high rates. About a month after discharge I was approved for a Mercury card with a $4k limit, no AF but very high rate. About a month ago I checked Discovers preauthorization site but was not offered anything. I want the Discover for free access to Transunion scores. Within the last couple of weeks Capitol 1 increased my limit by $1500 and Mercury went up $350. 4 months post discharge my FICO Eq is 672 and Exp. is 653. It will probably be a few years before I am able to get a "top tier" type of credit card but I am in a much better situation at this point than I expected to be. The lates still show on my credit reports.

Re: 30/60/90 hurt rebuilding after bankruptcy

md_rebuild — Mon, 27 Nov 2023 20:57:31 GMT

I would stop for now. 3 cards is pretty good. Do you have an SSL? You need one more type of loan (auto, SSL, mortgage) to get the credit mix right. If you're not with NFCU (and qualify), you could easily open up an account and get an SSL from them, pay down 90% of it, and have that report.

Don't worry about the 30/60/90. They'll be there until the fall off in 7 years. The bankruptcy is the baddie that will be controlling everything from this point foward. But don't despair, just use cards wisely, and push for SP CL whenever you can, and off to the garden you go!

Let time do its thing.