bankruptcy lowers credit score by how much?

[zcraigs]

My chapter 7 should come off my credit report in april.
How much should I expect to see my credit score go up after it is off my report?

[HRx]

Good question!! I personally dont know what the average number is, or if there's even a specific number value to it coming off. Have you been paying your bills on time since you began re-establishing your credit? This alone will have the most significant bearing to what your credit score is.

Good Luck!

[StaciMM]

Its probably going to depend on what is in your report before you filed. For me, I had some charge offs w/ balances, a couple of collections, some older paid charge offs, 2 vehicle loans (both with late payments) and 2 student loans (also had plenty of late payments). My scores were already in the cellar. I did sign up to MyFICO's scorewatch, lets you know when the Equifax FICO score changes. I got an alert, -8 points when the BK hit. But, a few weeks later when the 2 charge offs w/ balances due were updated to $0 balance owed, my scores went up a good bit.

If my score had been better to start with, the BK may have caused more 'damage' to the score.

Keep in mind that whatever 'low' you go down to, you can build up from there.

[egul105]

How often did you get a notification from FICO? I guess I'm impatient, but I'm b/the 341 and my discharge and not all of the creditors have reported "filed" yet, so I would think my score would be changing fairly frequently as they start to report it. I have it set so it's supposed to let me know if there's an increase by one point, but couldn't find where I could be notified if the score went down. I've had it for two weeks, and no change at all yet?

[StaciMM]

They send alerts out as things change, though it may take 7-10 days for the change to get a MyFico alert. (The alert comes from MyFico, not directly from Equifax so it may be a little bit after the change actually happens.)

You get alerts any time there is a negative change. You also get alerts for things (inquiries, account changes) though those do not always impact the score.

I saw the largest jump when my 2 IIB credit cards were updated, the balances originally reported at about $2200 combined on $1200 credit limits. (Our BK didn't include much in credit cards.) When those were updated to show $0 owed, my score jumped ALOT. From what I've read, FICO is happiest when your revolving balances are within 0-30% of the credit limit. I guess FICO did not like the fact that my utilization was almost 200%.

[egul105]

What do you mean by them not liking it? By jumped, you mean your score went up, I assume? That's pretty reassuring to hear then. I had low credit card balances, and about $60,000 in medical bills. My score went down 100 points prior to filing after those reported as collection accounts, so it will be interesting to see what happens when they are reported as zero.

[egul105]

Oh, shoot, I just reread your post, and I understand what you're saying now. lol!

[zcraigs]

back to the original question.....

how much does bk ch-7 lower your score/how much will your score go up after ch-7 is off?

[StaciMM]

There is no set answer. It will depend on what your credit report was like before hand.

If your score was very low to start with, you'll possibly seem some improvement. (When accounts are updated to show that you no longer owe them.) On the other hand, if you only stopped making creditor payments once you filed, you score may take more of a it once everything settles.

Regardless, I don't think your credit score should factor into whether or not you file. If you have no hope of paying the accounts off, then what does it matter if your score was better before you filed? If, after filing, you have a chance at being financially stable without relying on credit, then you should be able to move on from there. In the end, wherever you bottom out, you can count that as a starting point.

how much does bk ch-7 lower your score/how much will your score go up after ch-7 is off?

[Mysocalledlyf]

My score was 734 before I filed, and it went to 651 after.

[zcraigs]

My ch-7 is coming off my record after 10 years!

My ch-7 is ten years old in april and will come off.
I have nothing on my record before that.
My score is 550 now, will it go up ?or stay the same?

[LinSC]

To have a score of 550 there has got to be additional negative postings on your credit report other than just the BK notice. Either that or you didn't dispute anything that should have come off after being discharged in BK. I've filed BK, been discharged and after cleaning up my report my score is in the mid-600s now. My score was below 500 prior to filing BK.

Have you pulled your credit report to see what's on it? If you have open credit lines where you've been paying on time each month, your score should be getting better with time. You may have some really old things being reported. Or if you've never established a credit line post-BK that might explain the low number.

[Mysocalledlyf]

Or if you've never established a credit line post-BK that might explain the low number.

I think that might be the problem