Bankruptcy post-discharge

[Grneyedgal]

Hello everyone,

I’m excited to share that I finally received my Chapter 7 discharge today—yay! While this is a huge relief, my credit scores are still quite low, and I’m hoping they’ll improve over time. I have a few questions about credit reporting post-discharge and would really appreciate any advice.

1. Affirm Accounts: I have 4 accounts with Affirm that kept reporting while I was in active bankruptcy. I contacted both Affirm and Experian, disputed the reporting, but the disputes came back as "remain." Now, these accounts are being reported as "charge-offs," even though they were current before I filed bankruptcy. I’m not sure what to do next. Will these accounts eventually show a $0 balance after today’s discharge, or do I need to take further steps?

2. Student Loans: I have 10 closed and paid student loan accounts with Aidvantage, which were forgiven under the PSLF (Public Service Loan Forgiveness) program since I’m a school teacher. However, I was late 7 times for each loan in 2019. My credit report shows 70 late payments (7 lates multiplied by 10 accounts). Will these late payments eventually fall off my report? Are they still impacting my credit scores even though the loans are paid? Will the discharge affect the status of these loans?

3. Car Loan: I submitted a reaffirmation agreement for my car loan, but the judge did not approve it due to the high interest rate and the $18,000 balance. The judge expressed concern that if I couldn’t make future payments, I’d still be liable for the debt and didn’t want to set me up for failure. I have read that affirming the debt will help increase my credit score but only a minimal amount. 

4. Credit Scores: I’ve noticed that my credit scores haven’t changed much since filing bankruptcy, even after the discharge today. I’m feeling a bit defeated and was hoping to see at least some improvement.

Any advice or guidance on how to handle these issues or improve my scores would mean so much. Thank you all!

[Living20057]

Affirm lists as charge off unfortunately but it should be zero balance 

you will have to rebuild. If your car comes back and keeps reporting, that will help.

You get 2-3 cards max (keep the 10% balance max) and a self builder loan to get your score up

[Grneyedgal]

Hi! Thanks for your reply. How do I get a credit card with a bankruptcy on my record? Who will approve me for a credit card and a self builder loan? Feelink kinda stuck!

[Rogue46]

Both Capital One and Discover are sympathetic with a BK on your file. It would most likely be a lower limit but worth a try. Failing that you could go with a secured card but I wouldn't go down the route of getting in with predatory lenders such as Credit One as they charge crazy fees and just aren't worth the hassle.

[MileHigh96]

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@Grneyedgal wrote:

Hi! Thanks for your reply. How do I get a credit card with a bankruptcy on my record? Who will approve me for a credit card and a self builder loan? Feelink kinda stuck!

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If you have an account with Credit Karma, check their list of cards they are offering to you.  You have to be careful with what they are recommending because several of them are very predatory, but they also will show cards that, while sub-prime, are not horrible.  That's where I got my invitation to apply for my Ally card (it was Ollo at the time).  I also got my invitation to apply for my Mission Lane card as well.  You can also check with Experian because they will show card recommendations too.  That's where I got my invitation to apply for my Mercury card.  Those were the first three I got right after my discharge

As was mentioned CapOne is forgiving.  If you burned them, it might not be right away (it took me 10 months before they let me back in, but you can keep checking their pre-approval page as often as you want.  And if they say you are pre-approved, it is rock solid and you can go ahead and finish the application and fully apply.  Some people say that Discover is forgiving, but I burned them for less than $1K in my BK7 and I'm 3-1/2 years post discharge and they always deny me at pre-qualify, not sure why they hate me lol.

Also, try a local credit union, they are usually a lot easier than dealing with a lot of large banks.  And, is there any way that you are eligible to join Navy Federal?  If you were a member and burned them, forget it, but if you've never had a relationship with them and are eligible to join, they are worth the effort to apply for membership.  They are fantastic and will give you a chance after your bankruptcy.

So there's no need to feel stuck, there are a lot of options out there.  Good luck!