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Should BK an option in my case?

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Drew
Frequent Contributor

Should BK an option in my case?

For the past couple weeks, I've really been trying hard to get my credit straight.  I've paid off 4,000 on a store card, on time, and it only raised my FICO score 13 points.  My utilization for that card was under 50% almost since the first month I've had it.  The other thing I've done is send goodwill letters to original creditors and attempt to get negative information removed from my reports.  I've had absolutely no luck with doing that.
 
I'm really feeling frustrated because my scores are in the high 400's. In a lot of cases, I've noticed people who filed BK came out in better shape with score in the low 500's.  I admit, I have 8 charge offs but have taken care of 5 already, within a year's time.  Am I missing something here because I feel like filing BK would actually make more sense.  Does anyone have any thoughts on this?


Message Edited by Drew on 04-23-2007 04:26 PM
Message 1 of 12
11 REPLIES 11
smallfry
Senior Contributor

Re: Should BK an option in my case?

That's a last resort. Unless I could see no way to pay my bills I would not do it.
Message 2 of 12
Tuscani
Moderator Emeritus

Re: Should BK an option in my case?

It sounds like you can pay your bills. Just give yourself a little time. Don't claim BK just because your scores are low.
Message 3 of 12
Drew
Frequent Contributor

Re: Should BK an option in my case?



Tuscani wrote:
It sounds like you can pay your bills. Just give yourself a little time. Don't claim BK just because your scores are low.


I can appreciate what you're saying.  I guess I want someone to offer some knowledge about why that is.
 
Update:  My score just dropped 4 points, one day after it increased, and there were no changes on my accounts.




Message Edited by Drew on 04-23-2007 06:02 PM
Message 4 of 12
Anonymous
Not applicable

Re: Should BK an option in my case?

I have to agree with earlier posts...I would not recommend filing bk unless it is your only option. It ties up your life for years. Stay faithful and dilligent on cleaning up your credit, I'm sure you will get your scores up quicker than filing bk.
 

Stay strong!
Message 5 of 12
Drew
Frequent Contributor

Re: Should BK an option in my case?

I will keep focused on the goal, but if I don't see some drastic improvements on my score, I might be forced to seek other alternatives.  I've been paying too much money for my score to be almost the same as when I started. 


Message Edited by Drew on 04-25-2007 02:01 AM
Message 6 of 12
smallfry
Senior Contributor

Re: Should BK an option in my case?

The score is not the be all and end all. Give yourself some time. BK is a last resort. I've done it and regret my decision now.
Message 7 of 12
Anonymous
Not applicable

Re: Should BK an option in my case?

Drew,
 
My sugestion to you would be to continuously try and dispute the charge-offs on your credit reports. I filed BK in 1999 and believ eme it is very hard to recover. Although my scores are pretty good now, it took work, and even though I have never had a late payment in 8 years I still get denied because of it. If you can pay your bills don't file bankruptcy, infact those charge-off will still be there if you paid them off anyway so it still won't help. Your focus needs to be to try and get those deleted from your report. I disputed bad accounts with the credit bureau every 6 months for like 4 years, I constantly got them to investigate, begged them to delete. They will contact the creditor if the creditor does not respond within 30-60 days it will be deleted, some of the creditors did not respond so some accounts fell off, some of them did, so I had to stay patient, I also stayed consistent, over time just about all have dropped off except my BK.  So try that. I hope it will help you.
 
Message 8 of 12
Drew
Frequent Contributor

Re: Should BK an option in my case?

I hear what you all are saying.  As you all can tell, I'm very impatient when it comes to credit, especially with plans to purchase a new vehicle soon.
Message 9 of 12
Anonymous
Not applicable

Re: Should BK an option in my case?

I almost filed 2 years ago after my divorce. Today I am so glad I didn't, my scores are 150 pts higher today than they were then. I've still got some work to go, but I feel good that I took care of my responsibilities. I'm one of the impatient types as well when it comes to this stuff, but I kept telling myself that I had a plan to stick to. Good luck.
Erik
Message 10 of 12
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