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Late payments before Chapter 7

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Late payments before Chapter 7

Curious if anyone has any info on the following question. I wont go over the chapter 7 discussion, but I'm curious if anyone has any idea on the following. Currently have no late payments, will be filling soon as possible, but the delay is due to my obsession with trying to pay everything!. Obviously our attorney has advised to stop making payments, so we have the money to pay him. I'm just curious if any late payments before he files will make any difference in the future credit recovery. I'm aware my credit will tank currently around 600s across the big 3 due to utilization. I really don't know if a few lates before filling will make any difference with this process (after discharge). Thanks all.
Message 1 of 4
Frequent Contributor

Re: Late payments before Chapter 7

There are many threads on this same question.  I had the same concern.  You will get varying opinions/advice.


I chose to go into the BK 7 with as clean of reports as possible....No INQ's, no new accts and no derogs...but i did  end up with a few 30 day lates that i think are not accurate.  I will deal with those later though.


Any negative info on your reports prior to filing will remain on reports for 7 yrs. 

So it's safe to assume that:

-BK on reports = BAD

-BK on reports + NEGATIVE ACCTS  on reports prior to filing=  WORSE



Message 2 of 4
New Contributor

Re: Late payments before Chapter 7

I don't know the answer to your specific question but I am going to offer my opinion (that some members may disagree with). Most people that filed BK7 biggest regret was not doing it sooner, including myself. The FIRST thing I did was stopped making payments (spending bad money) after talking to three BK attorneys, who all told me the same thing. I used the money I would have spend on debt and paid my attorney in full.


I had numerous 30, 60 and even some 90 day lates when I filed. Had I done it sooner, I could have avoided some/most of those lates and started life after BK. The night I filed, when the phones stopped ringing was one of the best nights sleep I've ever had. Again, should have pulled the trigger sooner.


If you know you're going to file, do it. Then you can focus your obsession on your rebulid. Just my 2 cents.


Good luck.

Fico 8 Scores 10-7-19
Message 3 of 4
Super Contributor

Re: Late payments before Chapter 7

If a creditor is not an insider, the trustee can’t undo the transaction unless you paid the creditor more than $600 within 90 days before your bankruptcy filing; however, actual practices can vary depending on the court and trustee. An insider is a relative, friend, or business associate. The bankruptcy trustee could undo any transfers of property to insider creditors if the debtor transferred the funds within one year of the bankruptcy filing. This has gone back and forth for a long time. The BK will be the biggest hit to your scores as you know. If you could end up with just 30 day lates. They only sting for a couple years. Many say just quit paying. You want to look broke. Its a see saw situation. Darn if you do. Darn if you dont. But I believe future UW's will see the lates occurred right before filing. It can go either way. So its personal decision.

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. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 4 of 4
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