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Deleted bankruptcy

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Established Member

Re: Deleted bankruptcy

Hi everyone,
 
It would seem though that any accounts you had with lates or collections "included in the BK" would fall off the same time (or most likely earlier) than the BK, so therefore, you wouldn't have any lates or public records showing (as long as you didn't have any after the BK filing as you were rebuilding credit).  So technically, your score shouldn't go down -- if you were then put on a level playing field with others with no BKs or public records or lates, right?  This is assuming during the time between discharge and the BK dropping off you've re-established credit, increasing credit limits over time, keeping balances at a reasonable utilization, maybe taken out a car loan or mortgage, etc.
 
My Ch. 13 BK was just discharged 2/08 (filed 10/04), but during the BK, I re-established credit with a student loan, two unsecured loans with Prosper (installment), a Dell account and an unsecured Household Bank account (revolving) that is now up to $1000 limit (started at $300).  My car is paid off, so no auto loan yet, and I am looking at a mortgage hopefully in about 6 months.  I also have a credit union LOC for $1000 and an Orchard Bank visa ($750 limit).  I am hoping to increase the LOC and credit cards within 6 mos (hoping to have mid score over 700).  I have no lates.  All negative info is from BK or accounts included in BK.
 
I guess my question is that once my BK falls off in 10/2011 (another long 3+ years Smiley Sad), if I've "kept my nose clean" from now until then, how can my score go down?  I appreciate any thoughts...
 
EXP       623  3/25/08
EQFX    616  3/25/08
TU         564  3/25/08
Message 11 of 105
Highlighted
Valued Member

Re: Deleted bankruptcy



laurenjane wrote:
Hi everyone,
 
It would seem though that any accounts you had with lates or collections "included in the BK" would fall off the same time (or most likely earlier) than the BK, so therefore, you wouldn't have any lates or public records showing (as long as you didn't have any after the BK filing as you were rebuilding credit).  So technically, your score shouldn't go down -- if you were then put on a level playing field with others with no BKs or public records or lates, right?  This is assuming during the time between discharge and the BK dropping off you've re-established credit, increasing credit limits over time, keeping balances at a reasonable utilization, maybe taken out a car loan or mortgage, etc.
 
My Ch. 13 BK was just discharged 2/08 (filed 10/04), but during the BK, I re-established credit with a student loan, two unsecured loans with Prosper (installment), a Dell account and an unsecured Household Bank account (revolving) that is now up to $1000 limit (started at $300).  My car is paid off, so no auto loan yet, and I am looking at a mortgage hopefully in about 6 months.  I also have a credit union LOC for $1000 and an Orchard Bank visa ($750 limit).  I am hoping to increase the LOC and credit cards within 6 mos (hoping to have mid score over 700).  I have no lates.  All negative info is from BK or accounts included in BK.
 
I guess my question is that once my BK falls off in 10/2011 (another long 3+ years Smiley Sad), if I've "kept my nose clean" from now until then, how can my score go down?  I appreciate any thoughts...
 
EXP       623  3/25/08
EQFX    616  3/25/08
TU         564  3/25/08


Exactly what I did ... CH-13 filed 2000... discharged 2003.  When BK and all derogs included with it fell off last Sept my score went up 80 points to 777.  It now stands 6 months later at 800 on EQ, 793 EX, and 787 TU. 
I didn't need but a couple CC's, my mortgage, my HELOC, and a very brief car loan to accomplish this. And of course paying on time all the time between then and now.  I also only applied for credit that I actually needed and used.  I'm a firm believer in the KISS method.    Smiley Wink                                             
Message 12 of 105
Established Contributor

Re: Deleted bankruptcy

kimmerzz -
 
How old is your oldest tradeline and about what is your avg. age?   Those scores are great and I am wondering how old your credit is...............
Message 13 of 105
Highlighted
Established Contributor

Re: Deleted bankruptcy

laurenjane - Everything you said sounds good.  Except I hear that EQ does not remove ANY bk's prior to 10 years, including chapter 13's.......just thought I'd let you know.
Message 14 of 105
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Valued Member

Re: Deleted bankruptcy



Boscoe wrote:
kimmerzz -
 
How old is your oldest tradeline and about what is your avg. age?   Those scores are great and I am wondering how old your credit is...............


I got lucky with my oldest TL... it's a line of credit attached to my checking account that I opened 17 yrs ago and still going strong, which they faithfully report every month. CU's are great!  My average age of accounts is 7yrs.  I had 1 CC from 93 that remained after filing which started out at 3500 and is now over 10k.  I accepted an offer from Cap1 for a 7500 CC in 03 (after reading about them here I can't believe it was for that amount)  Bought a car in 04 and paid it off 6 months later. In 05 I did a cashout refinance at 5.25%.  In 06 I opened a HELOC.  After everything did drop off, I did accept a pre approved from Chase and received a 14k CC.  I don't need a lotta cards... too much hassle.  Basically I did just fine with those 2 cards I had for those 7 years.   But it was nice when all that trash dropped off!   Smiley Happy
Message 15 of 105
Highlighted
Established Member

Re: Deleted bankruptcy

Thanks Boscoe,
 
I wasn't really counting on anyone removing them prior to the 10 year mark -- although my Ch. 13 should be 7 years from the filing date, isn't that correct?  So it should fall off about 10/2011?  That's kinda frustrating if EQ leaves it on there another 3 years....
Message 16 of 105
Highlighted
Established Contributor

Re: Deleted bankruptcy

I have heard this, but you may want to call EQ and ask yourself....the other option is to dispute it one month after it goes 7 years.....
Message 17 of 105
Highlighted
Established Contributor

Re: Deleted bankruptcy

Your scores will go down. For those in the back row, YOUR SCORES WILL GO DOWN!
Message 18 of 105
Highlighted
Moderator Emeritus

Re: Deleted bankruptcy

The reason why one's scores might go down is b/c you will be rebucketed. The good news is that your scores should recover relatively quickly (provided you have established credit in the meantime), like a few months or even less in some instances.

BK7 lasts for 10 years (also BK11, BK 12). BK13 lasts for seven years, unless it was dismissed, then it lasts for 10 years.


Message 19 of 105
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New Visitor

Re: Deleted bankruptcy

My bankruptcy is off this May 2008.  My score has ranged between 600-694 the past two years.  As long as your payments are made on time and you try to make over the minimum, your score will increase.  I have not had one late payment or missed a payment in over 10 years.  I am positive that once my bankruptcy is off next month that my score will go even higher! The only reason it's not higher right now is because I have too many cards open.  I plan on paying off over half of them over the next 6 months. 
Message 20 of 105
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