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Chapter 7 and credit scores

Hmc610
Valued Member

Chapter 7 and credit scores

How long does chapter 7 affect credit scores?
Discharge was in June 2009 so I have less than 2 years to go before it falls off the report.
How much is this affecting my scores 8 years later? Should I expect a big score increase in 2 years or has the effect of time making it not such a big impact on my scores now?
I mainly want to know how it affects mortgage scores and fico 08.
Message 1 of 7
6 REPLIES 6
SteelerNYC
Valued Contributor

Re: Chapter 7 and credit scores


@Hmc610 wrote:
How long does chapter 7 affect credit scores?
Discharge was in June 2009 so I have less than 2 years to go before it falls off the report.
How much is this affecting my scores 8 years later? Should I expect a big score increase in 2 years or has the effect of time making it not such a big impact on my scores now?
I mainly want to know how it affects mortgage scores and fico 08.

YES

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU More Rewards Amex/NFCU Platinum/PenFed Power Cash Rewards/PenFed Pathfinder Visa/Citi Costco Visa/CapitalOne SavorOne/Apple Card - $139,100 total revolving, 21% utilization
3.25% mortgage July 2020, $20k used Auto Loan October 2020, $20k PenFed Personal Loan Dec 2020
687/683/673 EX/EQ/TU w/ 5/6/6 INQs as of Jan 2021
Spending 2021 in the Garden
Message 2 of 7
Hmc610
Valued Member

Re: Chapter 7 and credit scores

Thank you for the response but is that a yes for a large score increase or yes for the effect for time?
Message 3 of 7
leonel9
Frequent Contributor

Re: Chapter 7 and credit scores

This is a great question. Is there anyone around with a Chapter 7 discharge more than 10 years old that can share how their scores were impacted the month before/after the bankruptcy filing was removed from the credit report (at the 10 year mark)?

Message 4 of 7
pizza1
Community Leader
Super Contributor

Re: Chapter 7 and credit scores

depending on your rebuild the last 7 yrs, any baddies AFTER your BK, and what your util looks like at the time it should come off reports....you should expect to see anywhere 50-100 pt boost.

That is IF you've have rebuilt nicely, and have NO negatives after your BK either, and depending on inq/new acts as well. But even with those the lowest Ive seen was like 40pts boost.


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 5 of 7
Hmc610
Valued Member

Re: Chapter 7 and credit scores

Wow that would be great!
All my scores now are at the 720 range. A 40 point increase would nice.
Now I just have to wait.
Message 6 of 7
pizza1
Community Leader
Super Contributor

Re: Chapter 7 and credit scores


@Hmc610 wrote:
Wow that would be great!
All my scores now are at the 720 range. A 40 point increase would nice.
Now I just have to wait.

You say your DC was June 2009?? When was your file date? BK7's are deleted from the reports 10yrs from the file date, not DC date, so technically you have like a year and a half, maybe less. The reason I ask what your file date was, is because TU will delete 6 mo early (EE), and EQ and EX will delete 1-3 mo early Smiley Wink


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 7 of 7
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