Bankruptcy and Fico score

[maddy]

Hi! I'm glad I found this forum. There is a lot of good advice.
I filed for BK back in March of 1997. It still appears on my credit report. I heard that it can stay on for 10 years. Is this true? Will it come off in March of 2007? If so, what kind of effect will this have on my Fico score? Any info would be appreciated!!

Thanks,
Maddy

[BassBoy]

Welcome to the forum maddy!

Yes, the BK will come off at the 10 year mark. As for your credit, have you done anything in the past 9.5 years to help rebuild? If so, then I would say your credit will not probably go up after the BK falls off. Side note: You're score can also depend on your debt to income ratio as well.

BTW, what are you're scores if you don't mind my asking?

[maddy]

BassBay,

Hi! Yes, I did attempt to rebuild back in 99...I bought a house with my now ex-husband. Turns out that the mortgage company was of the 'predatory' type....They were constantly charging extra fees and reporting my payments as 'late'. They finally put me on a forbearance arrangement, which affected my credit as a foreclosure. Didn't help that ex was horrible with money. Finally got a divorce in 2000...I then put myself through college and had a family member purchase my house to get me away from the crooked mortgage company. I now have a good job and am slowly trying to get my credit straightened out. Ex is no longer on any of my financial obligations.
Recently got my Fico score...it was 591.

Oh, I also have many student loans, but they are all in good shape.

Thanks for your interest,
Maddy

[SinkingFast]

Have you physically looked at your Credit Reports to see what's showing there??

If you haven't, you can go to http://www.annualcreditreport.com and pull free copies of all 3 CRA's reports.

You want to be sure you don't have old accts left showing balances owed or charged off from your BK.

Sometimes, just getting your accts reporting correctly can give a big boost to your FICO score.

And, as BassBoy said, the BK will drop of your Credit Reports' Public Records section at the 10 year mark.

[maddy]

Sinking Fast....thanks for the info! Yes, I have looked at my reports. Other than the mortgage everything looked to be legitimate. I don't have any credit cards. Just student loans. My negatives were medical accounts, rsonal accounts with colleges...student loans didn't cover everything. I also had a few miscellaneous things like Direct TV and a closed bank account at Bank of America...-$49....

BassBoy...sorry I misspelled your name!!

Thanks again,
Maddy

[BK'd-Betty]

Hi Maddy!

Most of what was included in your BK should have dropped off your credit reports 3 years ago - negative reporting is for 7 years, the BK itself for 10 years.

I'm sorry to say, that it's the negatives dropping off that boost your score. Having the BK drop off will boost your score up, but we're only talking 20-50 points, so at 591, you are still looking at poor to fair credit.

What is hurting your scores are all the negatives that occured after your BK, especially the foreclosure - but if that happened in 2000, then it should be dropping off soon as well. You need to get those cleaned up, if you can, or wait out the time.

I know someone who is only 3 months from the 10 year mark and her scores are almost 800, even with the BK on her report!

[BassBoy]

....BassBoy...sorry I misspelled your name!!

LOL.....That's okay maddy.

The negatives form your mortgage after your BK is a huge hit. The idea of BK is for a fresh start and it's not good to have lates and what not after your BK.

[FilingOnMyOwn]

Sounds like your credit score should get a whole lot better in the next year or so, when both of your major derogatories will fall off. If they stay on beyond the 10 and 7 year marks, dispute them!