I am curious. I see people here mention that they were approved for loans and what not, but only if it was Chapter 13 vs Chapter 7. Is Chapter 7 viewed as a worse bankruptcy than a Chapter 13 is by creditors?
Thank you for the information. My curiosity is satisfied. I am hoping to be debt-free someday and have started saving everything I can.
@Anonymous wrote:In my experience, a Chapter 7 will not be viewed any differently in the credit world than a Chapter 13. Both are bankruptcy cases, both involve breaking legal payment promises, and both give you the benefit of court proterction from your creditors.
I disagree... if you loaned me $1000 and someone else $1000 and I got in financial trouble but told you I could pay you back over time and did but the other person didn't pay you back a nickel... who would you favor?
@pizza1 wrote:
In some creditors eyes, BK13 can be seen somewhat more favorably because in 13, the debts are either all or partially paid back over a number of years. But in BK7... That is total liquidation of assets, and you do not ever have to pay the debts back. They are dissolved in federal court, and the creditors take the loss.
I can tell you when my CU pulled my reports when I got my CC that was the first thing she said... "I'm glad it was a 13 and not a 7." I also didn't have to go through garbage lenders like First Premier and Credit One when I started to rebuild.
Paying someone back either in part or in full looks better than not paying them back at all... and you'll never convince me otherwise. People can say it's the same thing but it's not... and there's a reason a completed 13 falls off your report in 7 years... versus 10 years with a 7.
I'm about to pay off virtually all of my CC debt... and when the score boost hits my reports I'm expecting 700's across the board or close to it... I still have 16 months till my 13 falls off and don't think my scores would be this high had I filed a 7.
@Scupra wrote:
I agree with you but have always pondered this.. People discharged from BK13 usually are around 5 years from file date, so is it just that the BK has aged and that's why the score is higher? I think if I paid off my one card with a balance I would break 700 and am only 2 years post d/c. Like I said though, I agree a chap13 looks more favorable
You do make a good point and I actually thought about that after I had posted. It has aged to the point where the effect it has on my score is much less... I'm still feeling it though. In addition to the BK my TU score is being dragged down by inquiries from 2013 that will be falling off in 2015. For some reason all my creditors pull TU... unlike when I lived on the east coast and they all pulled EQ.
EX is being dragged down by the fact it still shows payment history unlike EQ and TU.... and my EQ is about to hit 700 because it has virtually no inquiries. That being said, to me my EQ score is proof that the BK isn't affecting it all that much anymore.
Regardless, I paid cash for everything for 4 years, made my payments and my reward is reports that will be clear in April 2016. Filing a 7 may get you on the rebuilding road a lot quicker but you still have it lingering on your reports for 10 years. Each has their benefits... a 7 gets you off the hook quicker and a 13 rewards you more down the road... IMHO. 
@0REDSOX7 wrote:
My experience is different and I think it all depends on the lender.
My local CU doesn't care if its a 7 or 13 - all that matters to them is your rebuilding efforts since discharge.
I did a chapter seven and got my CUs top tier rates for my auto loans and my Visa from them seven months post discharge.
So, for me, I'll say it depends on the lender...
I'm sure it does. I got my CC 7 months post discharge and my car refi after 10 months. Shortly after discharge I had inquiried about both and they told me "come back in 6 months." Being fresh out of discharge at that time it didn't matter if I had done a 7 or 13... but 7 and 10 months later the loan officer did bring it up as I said earlier. Did it affect my rates? I dunno... my car is 3.99% and my CC is 8.9%.
NFCU isn't an option for me... but BECU is the 4th largest CU in the US and I'm in the door. Couldn't be happier. I've got the accounts I need... it's been a year since I got my last CC. I'm just laying low for the next year till my reports are clean.