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Does my credit score after Ch.13 improve automatically?

Mandy805
New Member

Does my credit score after Ch.13 improve automatically?

I filed Ch.13 last year and I have heard many horrible stories that their credit score didnt improve during or after discharge...is this true?

Would it be better if convert over to Ch
7? To rebuild faster?
Message 1 of 7
6 REPLIES 6
juniebrunner
Established Contributor

Re: Does my credit score after Ch.13 improve automatically?


@Mandy805 wrote:
I filed Ch.13 last year and I have heard many horrible stories that their credit score didnt improve during or after discharge...is this true?

Would it be better if convert over to Ch
7? To rebuild faster?

You can't just switch over to a 7; you have to be qualified for that, which I figure you would have done so if that were the case.  If you just filed last year, its going to stay on your CR until 7 years past the filing date.  Once it drops off you will probably see a significant increase in your scores.  I did.  Also my score did NOT improve while still in the Ch 13 plan.  You really shouldnt be getting ANY credit unless you clear it with your BR attorney/trustee.  I tried to get a secured card but I couldn't even do that;  no one would touch me.  Once I was a year out from completing my payments I went through trustee to finance a used car and was granted.  This helped I am sure to some degree.  Once I was complete/discharged in Dec 2015, I got a secured card in Jan 2016 and started there.  I dont recall my score at that time, probably 600 or so.  My BR fell off my reports last June/July and my scores jumped anywhere from 26-80 points.  I am now at 800's across the board due to smart decisions. 

 

Ch 13 keeps you in BR jail for a long time, but for me it was worth it, and I have come out on the better side of things.    Don't be in such a rush; there really isn't anything you can do but make the payments, and wait.

Message 2 of 7
Mandy805
New Member

Re: Does my credit score after Ch.13 improve automatically?

Ok thank you ...my score dropped so bad when I files it's now in the mid 400s so I'm assuming it will stay there until I finish my ch13...correct? Since I can't get any credit until I'm finished with my bk.

I could switch to ch7 but that would mean I would hv to give up my car and I need a car for work.
Message 3 of 7
juniebrunner
Established Contributor

Re: Does my credit score after Ch.13 improve automatically?


@Mandy805 wrote:
Ok thank you ...my score dropped so bad when I files it's now in the mid 400s so I'm assuming it will stay there until I finish my ch13...correct? Since I can't get any credit until I'm finished with my bk.

I could switch to ch7 but that would mean I would hv to give up my car and I need a car for work.

To be honest I have ZERO idea what my score was when I filed or throughout.  I was that clueless and didn't even care.  I just wanted ppl to stop calling me!  I do vaguely remember looking at CK mid 2015 when I was needing to trade in for a 'new to me' i.e. used car.  It was in the 500's if I recall according to the sales dude.  It WILL get better I promise; it just takes time and patience.  Hang in there and don't worry about the scores for now.  Just concentrate on making those payments and you will be fine.

 

I'm going to go back and see if CK has any indication as to what my scores were a few years ago.

Message 4 of 7
Mandy805
New Member

Re: Does my credit score after Ch.13 improve automatically?

Thank you

I'm just so discouraged now that I'm in ch13 ...not that I'm trying to get a credit card or anything. I would like to be able to buy a house once I'm done with my BK but everyone is saying I have to wait a year after discharge to buy a house. I actually thought I could buy one with Trustee approval during BK but I'm so scared to ask.
Message 5 of 7
ohnikki39
New Contributor

Re: Does my credit score after Ch.13 improve automatically?

With Bankruptcies time heals everything. I wouldn't convert to a chapter 7 for the sake of re-establishing faster because then you would have 2 BK's on your record. First you wanna start by making sure everything on your credit report is reporting correctly. They should all show closed and either included in bankruptcy, charged off or paid in full. Once all your accounts are reporting correctly there are ways to start your rebuild while in a 13, there are several threads on this forum with steps to take to begin your rebuild. I know things may seem impossible now but there is definitely credit life after bankrupcty. Good luck to you.

Current Scores
Experian Fico 702, Equifax 712 and Transunion 706
Message 6 of 7
juniebrunner
Established Contributor

Re: Does my credit score after Ch.13 improve automatically?


@Mandy805 wrote:
Thank you

I'm just so discouraged now that I'm in ch13 ...not that I'm trying to get a credit card or anything. I would like to be able to buy a house once I'm done with my BK but everyone is saying I have to wait a year after discharge to buy a house. I actually thought I could buy one with Trustee approval during BK but I'm so scared to ask.

You can buy a house while in Ch 13 AFTER either 1-2 years of ON TIME payments AND with trustee approval.  Personally I waited until a year after I was done paying and discharge happened.  I worked my score up to 702 by the time I closed; it was like 680 when I applied.  Getting it higher meant I got a better deal.  Buying a house while in BK just seems weird to me.   I honestly dont understand why ppl do it; you cant possibly get a decent rate and you are trying to get OUT of debt, not going deeper!!! 

 

I dont know how much your payments are, but I socked away money for 5 years that I could so I could a) have a good emergency fund, b) good down payment with plenty left over and c) good interest rate. 

Message 7 of 7
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