filing chapter 7 with no deg remarks on credit report

[Anonymous]

I currently have no deg remarks on my credit report and my score is hovering about 720, my question is after filing chapter 7 will my credit score be a lot better then it would be if I had late payments on my report?  I've read posts on this forum where a few others have done the same thing and they end up with 600's after being discharged.

[DaveInAZ]

Well, I wouldn't say your credit score would be "alot better" with no lates, just "better", but once you have decided you will file BK7 any payments you continue to make is considered by many as throwing money away.

In my 2010 BK7 my attorney made me wait 90 days to file as I had made some cash advances, but told me to immediately stop making any payments, referencing that "throwing money away". So I had 30-60-90 day late payments on my credit report. Fico scores always referenced "late payments" as a factor negatively affecting my score, but I do think I did pretty well in my credit rebuild. At 7 years when all the accounts included in BK fell off my report my Fico scores jumped from the 670s to around 720. But even without lates, with accounts included in BK still on your report it's pretty hard to get over 700.

[Anonymous]

I will soon be laid off and have no other choice but to file bankruptcy.  My attorney stated to come back to him as soon as my last pay check is cut so I can file and my last check has already came.  He stated while I do make to much right now for chapter 7 once i'm unemployeed we can argue that I have no income right now and for the foreseeable future no job.  I'd like to keep my credit report as clean as possible and if that means I have to throw away $1,000 then I'm ok with that.  I also have cash advances but they were under $1,000 and he said it should be ok and they shouldn't object about it.

[DaveInAZ]

Well, I wish you all the best, losing a job and having to file BK is not much fun, but you'll get through it.

The cash advances recently came up here and apparently they've changed the rules since my 2010 BK7. All I did was use checks from one CC to make the minimum payments on other CCs, foolishly trying to put off the inevitable. But they were will under $1k combined, so these days I wouldn't have to wait 90 days. Those 90 days of collections calls were hell......

[sarge12]

Having no other negatives with a chapter 7 on the report will make a little difference, but not much. People beleive that filing BK always results in a huge drop in points, and usually it does, but not always. If you have a lot of debt, chargeoffs, late payments...etc., your credit score can actually increase after filing bankruptcy. It is rare, but that was in fact the case with my Neice. The reason for this is that all that collectable debt becomes included in bankkruptcy, and the possibility of lawsuits and judgements disappear. Her credit report had so many negatives it simply could not get any worse. Her credit score went up significantly once the bankruptcy showed up as discharged.

[Anonymous]

Losing a job does suck but without this happening there is no way I would be able to get out from under this debt without doing chapter 13.   as for the calls luckily I got a new phone number a few months back and haven't updated any of my credit profiles so I should be good there lol.

@Sarge12  I shouldn't run in to any issues filing right after losing a job that makes to much to qualify for chapter 7 you don't think?  My attorney says no but it's always great to get other peoples opinion on things.

[sarge12]

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@Anonymous wrote:

Losing a job does suck but without this happening there is no way I would be able to get out from under this debt without doing chapter 13.   as for the calls luckily I got a new phone number a few months back and haven't updated any of my credit profiles so I should be good there lol.

@Sarge12  I shouldn't run in to any issues filing right after losing a job that makes to much to qualify for chapter 7 you don't think?  My attorney says no but it's always great to get other peoples opinion on things.

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Nope...many, many people are forced to file due to job loss, but getting another job with equal pay before the debt is discharged might cause an issue.

[Anonymous]

Note to self don’t find a high paying job until after discharge. Thanks for the advice.

[cracksmeup]

I was wondering the same thing. I currently have zero late payments on my report and I'd like to keep it that way. I can see the writing on the wall and know I won't be able to keep up all my payments in the very near future. I'm hoping I can continue to pay until I file. I know it may not seem like much, but anything that will help my score after filing for bankruptcy, I'll take.......