Your credit score post bankruptcy/mortgage in 2 years

[nurse78]

I found out after a consultation with my lawyer that I can do a Chapter 7. The only reason I am able to do this is because my husband is out on Worker's Compensation, so his pay is $100 less than usual.

My husband isn't able to file because he has a car in his name with $15k in equity. He doesn't have a ton of stuff in his name anyways, except the mortgage. I am the one with credit cards, an SUV repo which I owe $9k after the bank sold the truck. All totaled, I have $16,500 to file.

My question is, how soon after chapter 7 does your credit score increase?? I have 3 student loans which I can't discharge. One of them is now in the hands of a lawyer to whom I make monthly payments, the other is 2 months behind w/Sallie Mae and the third is a direct government loan.

One of the reasons for my filing chapter 7 is I want to be able to get a mortgage in 2 years BUT with these student loans being reported late each month I don't think my credit score will increase much after I file???????

I could care less about getting any credit cards because I will never get myself into this jam again, if I can't pay cash, I don' need it!!!!!!!!!!!! MY ONLY concern is obtaining a decent size mortgage.

Any feedback would be greatly appreciated.

[Floridagail]

You will be able to get your score back up after you file. Unfortunately you will have to accept rebuilder credit cards to do so. My score actually improved after I filed. I accepted 2 cards right away and now have 4. I do not use them except for gas etc and pay all but 15.00 off each month so the score sees I am using the cards. If you feel you cannot do this , then your score will not go up. I would also review your Cr after your filing discharge to make sure it is showing zero owed on the accounts in bankruptcy. I found several errors on my report. 3 yrs later my fico scores are 689, 699. Some of my family already have their back to 740-760 after a bankruptcy. I started a little late getting the rebuilder cards.

[ksgirl38]

I found out after a consultation with my lawyer that I can do a Chapter 7. The only reason I am able to do this is because my husband is out on Worker's Compensation, so his pay is $100 less than usual.

My husband isn't able to file because he has a car in his name with $15k in equity. He doesn't have a ton of stuff in his name anyways, except the mortgage. I am the one with credit cards, an SUV repo which I owe $9k after the bank sold the truck. All totaled, I have $16,500 to file.

My question is, how soon after chapter 7 does your credit score increase?? I have 3 student loans which I can't discharge. One of them is now in the hands of a lawyer to whom I make monthly payments, the other is 2 months behind w/Sallie Mae and the third is a direct government loan.

One of the reasons for my filing chapter 7 is I want to be able to get a mortgage in 2 years BUT with these student loans being reported late each month I don't think my credit score will increase much after I file???????

I could care less about getting any credit cards because I will never get myself into this jam again, if I can't pay cash, I don' need it!!!!!!!!!!!! MY ONLY concern is obtaining a decent size mortgage.

Any feedback would be greatly appreciated.

Hi! I'm going through the consultation stage right now also, consultation # 5 on Thursday. From what I've learned your credit score takes about a 100 point hit. One of the recommendations I got which I thought made sense is to take out a credit card after you've filed and spend only 10% of the credit limit each month. Just buy something simple like gas, groceries, or something else that isn't going to get out of hand. Then just make sure to pay it off in full each month and this is one way to increase your credit score. Paying those student loans on time should help you too. The more lines of credit you have that are being paid on time should help you. I can understand not wanting to have a credit card, but it can help boost your credit score since it's a different type of credit line. Another option you could try is seeing if you could get one of your utilities charged to your credit card and then turn around and pay the credit card off every month. Maybe that's easier to have it automatically billed than having the physical card at your fingertips. Just a suggestion.

I have to ask though, if you only have $16,500 in debt, is bankruptcy your best option? Of course I don't know what your income is and can't begin to understand your situation, but that just seems like a low amount. Although if that's half or more of the income you bring in then I can understand. Any possibility in consolidating any of your loans? Just wondering if that would help you.

I'm in the same boat in wanting to get a mortgage in a couple of years so I guess we'll just have to wait it out. Good luck.

[athomas1469]

i agree about getting rebuilder cards, you will need to show that you have reestablished yourself. if you choose not to reestablish with credit, you do have the option of using nontraditional credit. (rent, utility payments, etc.) you will also have to get those student loans brought current.