How long does your credit score fall after filing chapter 7 bankruptcy?
sx24 asked:
I have credit score of around 210. I have unsecure debt of $85,000 with $0 income. I have been delinquent since 2008 and changed my phone number 3 times. And i’m getting sued by several creditors and my bank accounts are shut too.
I have credit score of around 210. I have unsecure debt of $85,000 with $0 income. I have been delinquent since 2008 and changed my phone number 3 times. And i’m getting sued by several creditors and my bank accounts are shut too.
Now that filing is just around the corner, how much lower can the credit score fall?
Paula
November 25th, 2009 at 10:23 pm
are you sure your score is that low? i thought 300 was the lowest. anyways~ bankrupcy will affect your credit for 7-10 years depending on which chapter you file and will drop it significantly.
chapter 7 is 10 years
November 26th, 2009 at 12:55 am
There is no such thing as a 210 score. Where did you get that? Certainly not FICO.
Sounds like your score will be thrown back to the starting line…in the 300’s if you are lucky. It’s going to suck to be you for a few years, but, it will allow you to breathe a bit easier, and hopefully, learn from the experience and not repeat it.
November 27th, 2009 at 1:30 pm
If you are getting sued your score is already as low as it can matter from a practical perspective. Bankrtupcty will, ironically enough, give creditors another incentive to offer you credit. The difference will be that it will be at an astonishingly high interest rate (the offers will start at 30% and go up from there). The reason this will happen is they know you can’t file again for at least seven more years.
Don’t fall for the trick. Figure out what happened to you to get into this situation, and change your life so you don’t find yourself back here again.
In the meantime, pay cash for everything.
November 30th, 2009 at 12:47 am
why do care how low it could go?
you won’t be able to get any kind of credit for at least 2 yrs and it will have very high interest rates even then
BK stays on your credit report for 10 yrs - the negative effects of it are mostly gone by 4-5 yrs - I bought a house 5 yrs after mine
if you wind up only being allowed to go chap 13, then you will have to payback a portion of that debt over 3-5 yrs
November 30th, 2009 at 2:01 am
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - credit-report-free.totalh.com
December 2nd, 2009 at 1:42 pm
There is this awesome website that has helped me after a bankruptcy & helped me raise my credit score 120 points. They seem to have all the answers & are real attorney so they know the law & what needs to be done. Just want to pass this website along in case you’d like to check it out.
December 3rd, 2009 at 3:51 am
Wise wording for your question.
Your credit score will fall precipitously when you file bankruptcy. But that’s it.
The same way a brush fire clears the old deadwood and allows sunlight to start the new crop of seedling so will your credit score.
But, this is a double edged sword.
If you go get new debt on bad terms and fail to repay as agreed, your score is going to stay right where it is in the “horrible” range.
A typical phase I’ll use is: How easy will it be to make all of your bills ontime and in full each month if you didn’t have $85k of debt.
But for you, if your $0 income persists, the answer is telling: impossible.
December 6th, 2009 at 9:43 am
At this point, the last thing you need to worry about is your credit score. Sure, it might fall but in the long run you are probably better off. With this credit score or your future credit score no one is going to loan you anything anyway.
December 9th, 2009 at 4:18 pm
The best way to solve your problem is to seek professional help. You can consult financial experts that can help you and explain every possible way to solve this. There are many credit restoration company that you can find online. A friend of mine was help by a financial expert of graceful financial.