Bankruptcy and your credit score

[kydiv]

How long does it take for a bankruptcy filing to affect your credit score? I filed in early November, had my 341 hearing in January, and my 60 day objection period is up Friday. However, I did my credit report/credit score at www.experian.com today and my credit score is 700 (good, according to them). The bankruptcy was listed in the report.

According to everything I've heard, I should be at a score of like 500 or less. What's up??!?!?!?!?!?!

[edwards2]

That does sound unreal...I think Minny who posts on this forum has a 700 too. I dont know how anyone can have a score of 700 with a BK...at least not right after BK or in the middle of it. Our score plummeted when we filed BK because obviously we werent paying our creditors. We are working hard to repair our credit but we havent even approached 600 and our BK was discharged last August. Some people have scores that move up almost immediately and ours, like ours, takes time. We have to dispute quite a few things on my husband and my report. It is depressing to think I am on overload trying to fix errors in our report and you guys have a higher score when yours hasnt even been discharged.

[kydiv]

exceptions?

Also, my score was nearly 800 before I filed. I kept up to date on all payments up until I filed and had an excellent payment history until the Chap 7. Of course, getting cash advances from one to pay the other wasn't getting me anywhere.

[cpw111]

Wow that is great. Mine took a nose dive from 660 to 505. Consider yourself lucky!

[SinkingFast]

I've heard of others that had that happen as well.

While I'm no FICO guru or anything I think I have an idea of what goes on for some people.

You get points for paying on time. As you establish yourself and pay off loans, and take on new loans, you get points. If you get black marks, like late payments, or a judgement, or lien, your loose points. Large amounts of unsecured debt also drag down your score.

When we did the refi on our house, we still owed as much as we ever had, but it was all on the house. And, we'd paid off all our unsecured debt in the process. Our scores shot thru the roof then. We went to buy something shortly after that and the loan person said they'd never seen anyone with FICO scores so high. Hubby was 798 and I was 785, and I didn't even work!

So if you have a decent score before you file BK, your score takes a hit for the BK. But your score also gets a boost from all the unsecured debt disappearing.

[FlamingFlowers]

I am currently printing out my 3 in 1 credit report as we speak. I was almost afraid to look. There are a few mistakes but otherwise it looks correct. And I have a whopping score of 512

[Minnymouth]

Kydiv,
Yes my score was in the low 700's after bankruptcy....
I like you had a very high credit score before filing BK.

I filed BK when I realized I could no longer make the payments.... like within 60 days........so few black marks and only 1 or 2 lates.

The fact that I had a 40 year history of almost perfect and paid in full credit also helped a great deal.

My lawyer said I filed right at the ideal time to keep it from affecting my credit score much...

[MTG_BANKER_OH]

I am currently printing out my 3 in 1 credit report as we speak. I was almost afraid to look. There are a few mistakes but otherwise it looks correct. And I have a whopping score of 512

You can bring your scores back quickly after a BK if you get out there and reestablish some credit and make sure the accounts are reporting quickly. You could get your scores up fairly quickly with reestablished credit, besides the only think you can do is wait. Make sure nothing is still reporting late on your report that was included in teh BK that will hurt you for a while unless you get on it now.

[USPSA-Shooter]

The higher the score before the BK, the higher the score after the BK.

[concerned]

My husband and I had decent credit right before we filed, but he closed several of our accounts shortly before filing. Could this have actually hurt our scores now?