I wanted to update the board on my credit journey. I work in the automotive industry in a technical field and making $100K+ for several years. In 2007, I was laid off from my long term employer but soon found another job but it paid 85K. Then 18 months later, I was laid off again (AUG08). This time it took 20 months to find work. I took the first job offer at $60K in AUG10. This was not enough to catch up. I was able to renegotiate my debt, sold my newer car for a beater, downsized as much as I could but nothing helped. The stress caused my wife and I to divorce (what a shame really). The stress also caused some medical issues with me. So I had no choice but to file BK. During the creditor's meeting, I had quit my job for a better one. My attorney advised me to say "I am out of work 'at the moment'" but if asked, I was legally obligated to tell them I was offered and accepted another position making more money. No one asked, thus I qualified for the BK7 instead of the BK13.
That was JAN2011. My scores were in the 500s. I followed the "BK7 to 700 in 24 months" thread to the tee. It worked as I broke 700 at the 23rd month. I also re-negotiated with Wells Fargo to accept 75% of my mortgage. So I went to a local broker and was approved for a FHA mortgage with $30 per month PMI (which is not bad considering I dropped my mortgage balance $60k and monthly payment by $300). The ironic part is that my broker sold my mortgage back to Wells Fargo. That caused a mess for a few months until WF could get it straight. The latest is great, rapid promotions, 5~10% annual increases.
Fast forward to 10 years (FEB 21) post BK7, my scores were in the 750 range. I have since paid off my mortgage, paid off all debt except a 0%APR car note (small student loan repayments starts in OCT). Today I received notice that my TU 08 score is 850/850. EQ=846, EX=843. I am AZEO credit card (Citi DC as my daily driver) for a total of 3 reporting (Car, CC and SL). In JAN 23, I applied for a Chase CLI and my FICO 9 score perfect but the 08 was in the 845 range. So for some reason, the F'09 score likes me better than the F'08 score.
Next week I will put in my notice that I plan to retire early at age 58. I was able to grow my 401K dramatically through out the Donald era (2016~2020). I do not want to get slapped for being political but I owe that man everything. I had ZERO saved when I filed but now I have enough money to bridge the gap until 62 and SS kicks in. I did not receive any financial help from anyone at any point in my life. I paid for my own student loans, down payment for the home etc. I paid both my kids to go to college as well.
Lessons Learned:
1) BK is there for you if you need it. Do not be ashamed if things go south. Do not "game the system" because it is a short term win. Be humble and change your habits, while you increase your credit knowledge. Live within your means. Do not try to "keep up with the Jones' because you will fail. Stay off FB and TT, that is mind rotting behavior.
2) Invest at least 15% of your income to a 401K/IRA and use aggressive growth funds if you have 10 years or more to go. Markets go up, markets go down day to day; but in the long run (>5 years) the market is always up and with dollar cost averaging; your balance will grow year over year.
3) Some creditors have long memories (Looking at you Jaime Dimond) although 11 years after BK7, Jaime let me back in after I burned him for $20K IIB.
4) Navy Federal was the best financial institution for me. They gave me a CC, LOC, car note and offered to re-fi my mortgage at a great rate. I cannot praise them enough. Thanks Navy Federal and those who serve.
5) Thanks to everyone on this board for helping me through those very dark days. I have to admit, I wondered some days if it was all worth it. It certainly was worth the pain because now I can spend every weekend with my grandchildren. Life is good, God is good.
FICO 08 JUL23: TU 850; EQ 846; EX 843. Clean since BK7 D/C 6/2011.
