What is happening?

[Geeznowwhat]

Ok..I started with a 810 credit score. Filed BK chapter 7 and saw it drop to 714. Expected that
Next, it dropped to 647.... Now this week it posted in at 595

What in the world is happening?

Why the repeated drops?

I only filed once. I get the drop to 714. Why the next two?
I have not had discharge yet....does this mean the bottom falls out even more then?

Can anyone explain this to me? I though I was going to end up in the 670-680 territory. why the multiple LARGE drops?

[kmattin]

What do you expect? You file to discharge all your debt with a ch7 and feel like your credit rating won't be effected? I don't know your situation, but when I filed ch13, my credit rating was terrible. I was in debt and unable to pay. If you file to discharge debt your were unable to pay, guess what? Your credit rating will dip. The good part is it will improve.

[switch625]

It seems to me that once you file BK, your credit rating does not hit rock bottom immediately. Mine dropped steadily in year one and has held around the same numbers in year two. Haven't checked it lately.

[Geeznowwhat]

I certainly expected to take the 100 point hit (to 710). Then the next hit of an additional 50 point hit....I sort of expected that too
I only had one item still on my credit report...a judgement from 6 years ago. Nothing else was reported on my credit report (yet).

But...then another 70 point hit??
Does this mean that other creditors who never got a judgement are now reporting accounts discharged, even though those accounts were not on my credit report before. ???
Does this mean that as more of them decide to report to my credit report (even though it is "discharged in bk") it will continue to drop my score
How long can this continue.

Are my creditors allowed to keep reporting on my credit report even now?

I talked with a lot of people and they saw 100-120 point hit.

I have seen more than a 200 point hit so far. This is why I am baffled.
Why me? What makes my experience so difference than all the rest I read about here?



Now I wonder....what additional hit is coming...and why?

[kmattin]

Well, my best guess is that your credit score has bottomed out and will stabilize for awhile. Have you checked your credit report? Have looked to see just what your creditors are reporting? Have you received your discharge yet? Are you expecting that after a chapter 7 discharge creditors will be lining up for you? Have you received a hard copy of your credit report, not some online report? Are you wanting to continue using credit after filing? I am not trying to be hard, but these are some of the same questions I had when I filed and answers to my questions. I just yesterday received my CH13 discharge and I am not at all ready to jump back into the credit card game. I want to wait a bit, send my discharge to all the reporting agencies and watch what happens.

[Geeznowwhat]

Yes, I hear you

I did not have any credit card debts. I did not have any mortgage or car loans. My debts were solely medical and business related, none were consumer.

Yes, I feel the need for a credit card. I have never used a card more than I was able to pay off the same month. Just travel is real scary when I don't have the ability to handle an emergency on the road.

Yes, I want my credit score to recover. I just never realized that I was going to suffer far more than anyone else I have heard of.

I got a report online line. This was after requesting my credit report and being denied. Well..the credit reporting bureaus want my proof of my new address...utility bill, etc. none of which I have. I am living with my daughter for right now....just got here 3 weeks ago. I don't know how to satisfy the credit bureaus in order to get my report in the mail. Any ideas? No, my daughter is not going to put the utility bills in my name. As for the bank...I don't have one at this point. That will be a couple of weeks...maybe.... I left Colorado with only a few dollars in my pocket and my car...nothing else. (I really mean..nothing).

[kmattin]

If you have been discharged from CH7. then send a copy of that discharge to the credit reporting agencies and request a hard copy of your credit report. One question, did you mix private debt and business debt together? In my opinion, you are not suffering more than anyone else. Try paying $1650.00 per month for five years. I chose to pay my debt as best I could through CH13. I finished the plan and will enjoy an new debt free life. I am not familiar how business debt damages a personal credit report. The medical will be discharged, I am not familiar with CH7 in business. Maybe refine your question and you may receive more in-depth help from the board. Try posting on the CH7 forum on this board.

[mynameainttracy]

I don't think most people filing have an 800+ score to start with. I think your bar might have been higher than the people you are comparing yourself to.

[LadyInTheRed]

I don't think most people filing have an 800+ score to start with. I think your bar might have been higher than the people you are comparing yourself to.

That sounds most likely.

The 100 point drop is a generalization. The drop will vary by each person's very individual circumstances. If your score was over 800, then a 100 drop would still result in a pretty good credit rating which doesn't make sense for somebody who just filed BK. I suspect the fact that you had a judgement on your report also may play a role. You now have two negative public records instead of one.

Geeznowwhat, you say the judgement and bankruptcy are the only things on your credit report. That means you have no history showing responsible use of credit. To improve your credit score, you will need to build some history of using credit responsibly.

[LadyInTheRed]

Try posting on the CH7 forum on this board.

Geeznowhat posted the question in the perfect place.

[AngelinaCat]

I don't think most people filing have an 800+ score to start with. I think your bar might have been higher than the people you are comparing yourself to.

When we filed, my 'Hub and I had a score of 820. You might want to check out the news article I just posted in the BK and Credit News board, for an informative piece about how Social Media such as Facebook can/is affecting credit scoring. That is a new wrinkle on things.

[switch625]

It seems to me that once you file BK, your credit rating does not hit rock bottom immediately. Mine dropped steadily in year one and has held around the same numbers in year two. Haven't checked it lately.

An update: Mine shot up about 17-21 points between the agencies when I checked today. I did pay off a car loan last month.

[Geeznowwhat]

I have never been on any social media. Even the old MySpace. I just can't figure out why anyone would give away their privacy for some company(Facebook) to turn around and sell it. Any way....nothing there to find on me.

So...tell me....how long till I can get a secured card? I am eager to rebuild from here

As for my debts. Since I was sole proprietor and not incorporated... The debt was my personal debt...but not consumer debt...ie: not credit cards, not auto loans, not home loans, etc. one smallish medical bill, otherwise all the result of business operations.

Finally...I do have this problem of credit report bureaus refusing to give me my credit report. I don't know how to work around it.