Not Sure How To Ask This Question...

[desperate&broke]

But I will give it a go....

I have been reading alot on here about how horrid charge offs are to your 'repairing your credit' AFTER you are discharged in BK.

So, what are you supposed to do if you have been charged off pre-BK?

Your advise would be appreciated

[cityish]

I've never really heard of this. So if there's any truth to it I'd love to hear input from others who may know more on the subject.

It seems to me that it's all bad. And it all drops off your credit report at some point. And while you're waiting for it to drop off, you can make the best of it by taking small steps such as getting a secured credit card and making monthly payments on time, etc.

[justbroke]

Credit scores are weird. Your account that were included in bankruptcy (IIB) will remain for 7 years in that status. You may be able to get some of them off. Best case, if they're showing as "charged-off" or some other "status", to get them changed to IIB.

My credit score went up 41 points, since filing! It must be the IIB designation versus the "charged-off" designation that several accounts had.

A Chapter 7 public record will stay on your credit for 10 years anyhow (7 years for Chapter 13). It's a long road.

[Flamingo]

But I will give it a go....

I have been reading alot on here about how horrid charge offs are to your 'repairing your credit' AFTER you are discharged in BK.

So, what are you supposed to do if you have been charged off pre-BK?

Your advise would be appreciated

Late payments and chargeoffs occurring prior to your filing date cannot be removed. They will be on your credit reports for at least 7 years. There is not too much you can do except ride it out and be prudent over the next several years in paying all your bills on time and being smart and saavy about your money and credit. Time will take care of everything if you do that for several years after a BK discharge.

[AngelinaCatHub]

I would never doubt 'Flamingo', but she is right. Remember, when you decided you were going for your new start, I think you had to know your credit is in the Sh** can. That being said, with your new start, "Don't do it again". Credit cards and if I'm wrong, spank me [please]. You will be just fine. It is a new beginning. Go for it and get it over. 'Hub

[desperate&broke]

Thank You Guys For Your Input...

[No Gravy]

Thank You Guys For Your Input...

The possible good news for the future is that there are so MANY people in a similar position right now, that FICO will likely adjust it's scoring models a few years down the road for this time in history, so the hits to our credit scores won't be AS bad as a charge-off/BK usually would be.

If nothing else, you have a lot of company in the shallow end of the FICO pool

[cityish]

If nothing else, you have a lot of company in the shallow end of the FICO pool

I do have to admit I take a small amount of comfort in this. Not that I'm glad anyone else could be in as pathetic of a financial situation as I am... but misery loves company I guess!

[desperate&broke]

I do have to admit I take a small amount of comfort in this. Not that I'm glad anyone else could be in as pathetic of a financial situation as I am... but misery loves company I guess!

Feeling is mutual

[No Gravy]

I do have to admit I take a small amount of comfort in this. Not that I'm glad anyone else could be in as pathetic of a financial situation as I am... but misery loves company I guess!

I hear ya

This forum has been great in the wealth of information and support here, but it also helps because I know I'm not the only one in this situation. I have friends who would understand, and yet...it's a little easier to "let my hair down" here, because people understand, because they have real-world experience.

[rpaws]

It is true. This forum clearly gives spiritual and emotional support in that a person can know it is not just them going through this alone. There is every indication to believe this financial avalanche will intensify to the extreme over the next couple of years.

Thanks to everyone for sharing their experiences.

[GoingDown]

Yeah, on the positive side, I think it will make it easier to get a job with bad credit because a lot of people will have bad credit. So, prospective employers will have to start overlooking some of these things.

[mmenz22779]

for what it is worth this will be my second chapter 7, and after the first one I bought my house after 2 years. Bk is not as bad as it used to be back in the 70's and 80's. Everyone and their mother has some issues and now with the economy the banks will have no choice but to lend to people with lower FICO scores, or they will not have much buisness.

The most important thing to do is before you file make sure your ducks are in, such as make sure you have stable housing, a stable job and a car, it would not be a bad idea to have some spare cash hanging around. Stop paying your creditors and save it.

If you have those things in order then you will learn to live without all the credit. If you have at least 90 days to spare then you should be able to get your stuff set. 2 years go by fast when you can wake up and not worry about your bills.

I am doing BK because I am upside down on 2 investment properites and they are dragging the rest of my finances down. As soon as I do ch 7 then I can start my 401k again and life goes on.

Life happens and it is only money.

[Mary Irene]

A charge-off does not mean you don't owe the debt. It means the original creditor just gave up and took the loss on their taxes. They will sell your debt to someone else who will try to collect. This can go on ad infinitum. They may even file a judgement against you if you owe enough to make it worth their while. You have to put all these on your bankruptcy when you file. After you file, they will all change on your credit report from charge off to Bankruptcy-wage earner for a ch 13 and bankuptcy-discharged for a chapter 7.

[ready2puke]

I have to say this is the best therapy EVER !!!! I just want to thank you all for being here and for posting your experiences. I never thought the anxiety would ease up and I would sleep thru the night. Reading this forum for hours every day has actually made me feel human again and accept my pitfalls without condeming myself. I really do sleep well at least for right now...Im sure when I get ready to actually file, 341 and all I'll get the hebbie jebbies again but I know you all will be there and I can read and feel better. Just wanted to voice my gratfullness to everyone...tearing up now....lol