FICO questions

[lizardhead]

Before you say it depends, please read on. Mine and my wife's scores are currently between 700 and 750. We have met with an attorney who is going over all of our info to see if we qualify for chapter 7. On an AVERAGE, how big of a hit did you credit score take when you filed? 100 pts? 150? I'm just trying to get an idea, surely some of you know.

Thanks very much......

[cupcake]

Sorry, but it really does depend on the situation. It depends on how long before filing BK that you stopped paying your CC bills, it depends on your debt to income ratio, it depends on how many credit inquiries you've had, etc.

Personally, I had a very high debt to income ratio and I stopped paying my CC bills seven months prior to filing. My FICO went from 738 in July, 2008 (while bills were still current) to 528 a couple weeks ago when I checked after my 341 hearing.

[BuckeyeGuy13]

I filed Chapter 13 end of March 2009. Stopped paying bills December 2008. I had a high debt:income which was killing my score. Stayed current on house and cars. Score pre-filing 610. Post, 630.

[chloe0724]

I haven't looked at mine yet. I am almost a year into my 13, and I know that I won't need my credit till I'm done with my 5 year plan.

[BuckeyeGuy13]

I haven't looked at mine yet. I am almost a year into my 13, and I know that I won't need my credit till I'm done with my 5 year plan.

First, congrats on making it a year in the 13. Through my research, I know what I'm facing, so I know how challenging it can and will be.

I have noticed that a lot of people say they won't need credit again for 5 years or that they'll never use it again or that the score doesn't matter. I take a little different approach because you never know when you will need credit again. I'm not talking about going out and getting credit cards or personal loans, but many of us would like to buy another house or a car in the future, which will require credit of some kind.

Yes, I know I could pay cash for a beater, but realistically, how many people does that apply to? Again, I'm not saying go out and finance a brand new $40K car, but not everyone can pay cash for a clean, low mile, dependable vehicle.

If you want to buy a house, you will need credit of some kind. Even during your plan, circumstances change and you may find yourself needing to move, job relocation, etc. You never know.

Finally, a lot of people are just simply curious about their credit scores. Let's face it, for YEARS it has been beaten into us that we are a number and that number is our worth. It determines everything we can do: Where we live, what we drive, where we work, what we pay for insurance, blah, blah... So, it's only natural for someone to inquire about what the BK will do to their score. I know I was. Especially since I spent the better part of 2 years struggling to make ends meet ONLY so I could stay current on my cards so I could protect my score.

Thankfully, through this site and the wisdom of the members, I have realized that I was in a rat race that I could never win. Reading posts based on knowledge and experience is what helped me make the decision. And, after seeing that filing actually HELPED my score (at least initially), I'm more than happy to report that. Doing so may actually encourage someone to make the smart business decision to file BK if their score is one thing holding them back.

[lizardhead]

Thanks for the responses.....