CO > BK?

[mschang]

how do those with recent BKs have scores over 700 within 2 or sometimes even 1 year?

my baddies are a repo from 2010 and 3 COs from 2008 so i'm not an angel but i'm not anywhere near 700 either.

if it matters i have 12 year history, 6-7 AAOA depending on who you ask, and no lates. everything went to crap in 2008 and 2009 though so even though i don't have lates i have COs

[kobe2012]

I wonder too.... I ruined my credit 6-7 yrs ago and still have a few baddies on file... sometimes, I do wonder if filing bankruptcy would've made the rebuilding process faster.....

[awal]

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@kobe2012 wrote:

I wonder too.... I ruined my credit 6-7 yrs ago and still have a few baddies on file... sometimes, I do wonder if filing bankruptcy would've made the rebuilding process faster.....

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+1

[mschang]

really awal? that's very surprising!

[Anonymous]

I've wondered the same thing myself.  I'm sure there's some scoring difference, as with bk all your baddies are lumped together vs. having multiple lesser baddies.  Another reason may be those who get into debt problems but  pay it all down are more likely to be really credit shy for the months and years that they're paying down debt - and possibly for a good deal of time afterwards.  It seems those who file BK , at least on here, seem to knowthey need to hurry and establish new TL's ASAP following BK.  either way it's a long road with lots of work.  It just seems those with a recent-ish BK and decent-ish scores knew to start down that road sooner than  others did.

[cardslayer]

I have wondered the same thing. About 10yrs ago I fell into trouble and let several cards go into CO and also let a very expensive car repo. For me, I think I made the right decision to not file BK. I was able to slowly get rid of ALL CO's within 2-3yrs and have been able to build my credit without having that on my record. Granted, it would have fallen off by now, but it would have haunted me for several more years than the CO's.

So, to me, CO > BK because CO's you can work with to remove and resolve (especially PFD strategies or some legwork in disputing), whereas a BK is a PR and is most likely going to stay there the whole 7yrs. 

Considering a legal standpoint, however, I was at risk of being sued (never was, however) which could have resulted in a PR (judgement), so in that case BK > CO.

Haha so to sum it up I guess it's a YMMV thing 

[Anonymous]

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@kobe2012 wrote:

I wonder too.... I ruined my credit 6-7 yrs ago and still have a few baddies on file... sometimes, I do wonder if filing bankruptcy would've made the rebuilding process faster.....

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You'd be rebuilding with less debt but a lot of prime lenders wouldn't want the risk.

Also, there's a lot more information than evern before. People can research what to do before, during, and after to prepare for rebuilding.