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Decided to File Chapter 7 and bk to 700 in 2 years opinions

New Member

Decided to File Chapter 7 and bk to 700 in 2 years opinions

I previously posted regarding late payments before filing and the fact I've spent the last 2 years somehow paying both mine and my wife's minimum payments on time for the sole purpose of not wanting any lates on our report.

Reading here and consulting with 3 different attorneys in MO they all advised stop paying and save the money to file. After an internal fight with myself there really is no other option with this.

I've started a payment plan with the law firm, and my last creditor payment was Aug 26th. Estimated filing after the plan is done will be mid November, so ultimately we will have multiple 60 days lates at that point. Thinking logically lates 7 years on file, bk 10 so it is what it is.

Both our scores on all 3 bureaus are 600-603, purely due to utilization, as no lates are currently showing.

From anyone who has been through this scenario, I'm guessing the initial lates, and bk might ultimately end in over 200 point drop for both of us. I know it's hard to predict the exact scores, but with the bk to 700 posts in 2 years I've not seen any actually reports of worst case post discharge scores that can achieve this. I would guess if my score was 700 at time of filing more points would drop off at every stage, compared to a starting score of 600 and it will even out. I'll be in a situation that we can both save money finally, and change habits but just curious if the 700 in 2 years works for most starting scores.
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Super Contributor

Re: Decided to File Chapter 7 and bk to 700 in 2 years opinions

Welcome to the forums! The BK will do the most harm. Sometimes lates do happen before filing. Which in some eyes of the creditors. It is expected. Thats why you filed. Too bad you couldnt get a PT job to pay the monthly fees and pay the lawyer sooner. But the lates will sting less in time. While the BK is really slow to recover. 60 day lates are a whole lot better than 90 or 120 day lates. 200 pts is a stretch though. But you will see a score boost once everything has updated to IIB and 0 balance. Wait until that happens before you start the rebuild. Dont rush it like some do. Its a 50/50 decision to pay to aviod lates on here. I go the late-free route. But some cases it just cant be done. But on the bright side. It will all be over with soon. You'll have that fresh start and the load will be off your back once anf for all. Best of luck man! Play it right and you can recover. Example below after 4yrs of rebuilding. It can be done. Just play the game right.

My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. Help fellow members accomplish the rebuild when you do it right and play the FICO Credit Game.
Message 2 of 3
Valued Contributor

Re: Decided to File Chapter 7 and bk to 700 in 2 years opinions

The short answer is 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
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