Credit Scores And Discharge

[klux]

Once you receive discharge and your creditors update your credit report is it possible for your scores to go down, or will they only go up? I guess my main question is, when does your score get the most negative effect...when you file or when you get discharge?

Also, when I receive my discharge papers should I send a copy to each credit bureau asking them to update my accounts and include a list of the accounts, or do I need to contact each creditor and ask them to do it?

Any advise would be greatly appreciated, we should be receiving our discharge any day and our trying to purchase a new home, and our scores are right on the border line so I don't want anything to go down.

[HHM]

Unfortuanatly, you are asking one of the most unanswerable questions. Whether your score goes up or down depends on so many factors, there is no way to tell; generally, if your score was really low going into the BK, odds are your score will go up after BK, if your scorew was really high going into the BK, odds are your score will go down.

As for updating your accounts, the creditors should up date your accounts so you probably don't need to do anything, however, you will want to check your credit report about 2 months after receiving your discharge to check to see if all creditors that were included in your BK have properly updated your account status, if they haven't, then send a letter to the credit bureu's disputing the particular entry.

Have you already met with lenders/brokers about your situation, even with decent scores, it can still be quite challenging to buy a home right out of BK. For financial planning purposes, you probably want to wait a year so you can get a better interest rate.

[klux]

Thank you for the information. Yes, we have already met with a mortgage broker that our relator referred us to and they are very confident that we won't have a problem. I am nervous because the broker ran our credit but the lender he's going to use hasn't, he says this is because the credit will only be good for 60 days and that we want to wait until we are sure we'll be able to close within 60 days, he says if we run our credit too much that we will lower our scroes and that we are on the border right now. Our relator has worked with this broker numerous times and stated that the broker has NEVER not closed on a loan when he said he'd be able to. We currently have a home and will have proceeds from the sale for 10% down payment. The interest rate isn't the worse, it is 7.72% 2 year arm. I know that isn't great but right now we are in a FHA loan that the interest rate is 7.75%, that wasn't bad when we got the loan.

I am going to keep my fingers crossed that the scores don't go down, once the discharge is reported. Currently my scores are 525, 536, and 548 and my husbands are 517, 580, 636. WE had converted from a Chapter 13 to a 7 after 3 years into a 4 year plan, we were able to reaffirm all secured debt and realized that the only way to move forward was to get this done and behind us. When we originally filed we didn't realize that a 13 and 7 look the same and that you can't really start moving forward until discharge date, much sooner with a 7 than 13.