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Bk7 fall off, possible score?

AverageJoesCredit
Community Leader
Mega Contributor

Bk7 fall off, possible score?

Hello mods, not sure if this is correct area for this post,please feel free to move if necessary.Thanks

Hi everyone, have a question to get a possible idea on what to expect.

My chapter 7 bankruptcy , to my knowledge, is supposed to fall off my TU in April/May of 2017, since my discharge was from April 2007. Funny thing is i recently got my free TU credit report and surprisingly, it says possible fall off date 12/16. Ok, awesome if it does.

Now my question is, as this will be my only negative on this particular report, do you think i will see any type of postive upward movement of my score?. I know everyones profile is different. I have been building some postive credit history since Jan 2015 so i will have some established credit with 100% payment history. As of today, my TU fico score 8 is 695 ( actually was at 700 recently but an old account fell off my report. So hopefully nothing bad happens by Dec and ill have a couple more months of positive history. I have read a few post here where some say your score will fall but am interested in anyones current input. Thanks everyone its been great being part of this communitySmiley Happy AVJ

PS, have heard about possible early exclusions from TU, thought on this welcomed as wellSmiley Happy
Message 1 of 13
12 REPLIES 12
iheartwings
Valued Contributor

Re: Bk7 fall off, possible score?


@AverageJoesCredit wrote:
Hello mods, not sure if this is correct area for this post,please feel free to move if necessary.Thanks

Hi everyone, have a question to get a possible idea on what to expect.

My chapter 7 bankruptcy , to my knowledge, is supposed to fall off my TU in April/May of 2017, since my discharge was from April 2007. Funny thing is i recently got my free TU credit report and surprisingly, it says possible fall off date 12/16. Ok, awesome if it does.

Now my question is, as this will be my only negative on this particular report, do you think i will see any type of postive upward movement of my score?. I know everyones profile is different. I have been building some postive credit history since Jan 2015 so i will have some established credit with 100% payment history. As of today, my TU fico score 8 is 695 ( actually was at 700 recently but an old account fell off my report. So hopefully nothing bad happens by Dec and ill have a couple more months of positive history. I have read a few post here where some say your score will fall but am interested in anyones current input. Thanks everyone its been great being part of this communitySmiley Happy AVJ

PS, have heard about possible early exclusions from TU, thought on this welcomed as wellSmiley Happy

Well, congrats on making it this far. I, too, am looking forward to the day my BK falls off my CR (my filing date was in 3/2007). 

 

BK7 will fall off your CR 10 years after your date of filing (not of discharge). Generally, you may request early exclusion for BK from TU 6 months before it should fall off, and EX is 3 months. I've heard various reports about EQ, which sounds to be no sooner than 1 month prior to the date it should fall off. 

 

What your credit score will do after the BK comes off will depend on what is in your report and how it compares to others. As you may have heard, FICO scoring involves some bucketing of profiles. That is, your score is calculated/compared to those who have a BK on their record. When the BK comes off, the group you are compared to changes. Depending on what new bucket you've joined, you score may go up or down.

 

The various buckets that are out there are proprietary, so outside of the BK bucket, we definitely don't know what other buckets exist (those related to AAoA, etc.). You can search the forums for bucketing and FICO to help understand this concept better. 

 

Hope that helps.

 

Message 2 of 13
AverageJoesCredit
Community Leader
Mega Contributor

Re: Bk7 fall off, possible score?

Thanks @ iheartwings! Appreciate the info. Will definitly be interesting. I may call TU to inquire about early exclusion, nothing ventured nothing gained right. Funny thing is it already came off my Ex but unfortunately i have a late payment(s) from my car still showing on that one, my only negative but hopefully that falls off after 7 years. Eq is another beast all togetherSmiley Happy. Good luck on your journey as well. It will feel great to have a clean report one day soonSmiley Happy
Message 3 of 13
takeshi74
Senior Contributor

Re: Bk7 fall off, possible score?


@AverageJoesCredit wrote:
Hello mods, not sure if this is correct area for this post,please feel free to move if necessary.

Not a mod but Understanding FICO Scoring is a good subforum for questions about scoring impacts like this.  I don't recall a significant scoring increase (I was in the low 700's with my FICO 8's with it reporting near the end) from having my BK fall off but it did help with creditors that were denying with a BK on reports.

Message 4 of 13
AverageJoesCredit
Community Leader
Mega Contributor

Re: Bk7 fall off, possible score?

Thank you Takeshi, understood. I wholeheartedly agree with your view on help with creditors as i have noticed it seems much easier for them to reject by using the bk as a reason, and in the end how can you really fault them? Even though i had been approved for a cc and loan with Penfed for example, they would not approve another cc or cli at this time due to many factors including bk on report. (That and i need to establish more history with themSmiley Happy.So i understand. This is also why id like to garden and let all my negatives fall off, will give me a little extra boost of confidence when applying. Thanks again everyone for your time!
Message 5 of 13
tuwood
Visitor

Re: Bk7 fall off, possible score?

I imagine there are a lot of potential factors that will effect your score.  If you've rebuilt back into the 700's then I suspect the impact will be minimal.  However, if your score is in the upper 500's or low 600's the change could be substantial.

 

We filed bankruptcy back in 2000 and I laughed because my credit score actually increased.  We were way late on everything and had hundreds of thousands of dollars in debt.  The BK wiped it all out so we only had the BK and the closed/discharged items on our report with balances of zero.  I can't remember my score but I think I went from the upper 400's to the low 600's after I filed.  When it eventually fell off I believe I was in the low 600's still due to some high balances on cards, but I got a bump of maybe 50 points (can't remember exactly because it was a long time ago).

 

Either way, congratulations on getting close to the end of the BK and good luck. 

Message 6 of 13
AverageJoesCredit
Community Leader
Mega Contributor

Re: Bk7 fall off, possible score?

Many thanks and much luck to you as well on your recovery from bk !. Welcome to the forum as well!. I never realized that you could start rebuilding imediately after bk. I just figured im in bankruptcy , im not gonna be given credit for next 10 years so never even knew you could restart. Thankfully im on my way. Ive still made mistakes on my rebuild but now that ive found this forum ive learned many things not to do so its definitly making it smoother going forward. I think im actually going to give TU a call today to inquire about it. If they say cant do its cool, dont have to much time left. Ill let everyone know whether i have any success or not. Thanks again for your reply, much appreciated Smiley Happy
Message 7 of 13
CAPTOOL
Senior Contributor

Re: Bk7 fall off, possible score?

I don't know if Fico weighs them the same, but I saw a 55 point increase when my tax lien went away. It was my only negative.

Message 8 of 13
AverageJoesCredit
Community Leader
Mega Contributor

Re: Bk7 fall off, possible score?

I would loveeee a 55 point jumpSmiley Happy but in the end will be happy just for it to fall off.

I did call into TU today but as expected a no go. Felt like the agent really didnt even know what an early exclusion was as soon as she heard bk she was like a bankruptcy stays on your report 7 years, mine is 10 as was a bk7 so sure she was just going off script. Understandable, i can wait a few more months and if it falls off in Dec even better. Smiley Happy
Message 9 of 13
iheartwings
Valued Contributor

Re: Bk7 fall off, possible score?


@AverageJoesCredit wrote:
I would loveeee a 55 point jumpSmiley Happy but in the end will be happy just for it to fall off.

I did call into TU today but as expected a no go. Felt like the agent really didnt even know what an early exclusion was as soon as she heard bk she was like a bankruptcy stays on your report 7 years, mine is 10 as was a bk7 so sure she was just going off script. Understandable, i can wait a few more months and if it falls off in Dec even better. Smiley Happy

I would search the RYC and BK forums for early exclusion because I think just talking to the frontline CSR isn't going to get you far.

 

You can try again and ask for a supervisor which is more often successful (at least from what I've seen on the forums). 

 

Some have had success with filing a dispute online asking for early exclusion, but I definitely think you should research this on the forums. 

 

I'm excited for your BK to fall off. Smiley Happy 

Message 10 of 13
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