I’ve been stressed over debt for 5 years now, and I think I’m ready to let it go and move forward.
Yes, it wasn’t a big deal. My credit score bounced back to 700 in two years.
Freddie said:
Yes, it wasn’t a big deal. My credit score bounced back to 700 in two years.
Yup, after bankruptcy the banks come running back since they know you can’t file again for 7 years.
@Scout
Actually, it’s 10 years before you can file again.
Mackenzie said:
@Scout
Actually, it’s 10 years before you can file again.
Depends on the type… 8 years for chapter 7 to 7, and 4 years for chapter 7 to 13.
Freddie said:
Yes, it wasn’t a big deal. My credit score bounced back to 700 in two years.
Good luck trying to buy a house after filing.
Freddie said:
Yes, it wasn’t a big deal. My credit score bounced back to 700 in two years.
Good luck trying to buy a house after filing.
I bought a house 4 years after filing with a 5% loan. Maybe educate yourself before commenting.
Freddie said:
Yes, it wasn’t a big deal. My credit score bounced back to 700 in two years.
Good luck trying to buy a house after filing.
Filed in 2018 and bought a house in March 2021.
Freddie said:
Yes, it wasn’t a big deal. My credit score bounced back to 700 in two years.
Good luck trying to buy a house after filing.
I’ve had lots of clients buy homes after bankruptcy.
Freddie said:
Yes, it wasn’t a big deal. My credit score bounced back to 700 in two years.
Good luck trying to buy a house after filing.
I bought mine after 3 years, no issues.
100% the best decision I ever made. I lost all my savings trying to keep up with debt, and the pandemic made things even worse since I work in hospitality. On top of that, my state’s unemployment system got hacked, and I couldn’t get my benefits reinstated. Went from earning over $50k a year to $11 an hour.
Within 6 months of filing, I started getting credit card offers again, and now I have $20k in unused credit and a 725 score. I’ll never forget what my bankruptcy lawyer told me: ‘It’s the American way. Some people file every 7 years, and there’s no shame in it.’
@Jesse
I agree 100%. There’s a bit of shame at first, but honestly, once I saw big companies and even cities like Detroit filing, I realized it’s just part of the system. Who cares what people think?
It was worth it for me. I had over $500k in debt after my business failed during COVID. There was really no other way out.
Arden said:
It was worth it for me. I had over $500k in debt after my business failed during COVID. There was really no other way out.
Same story here… about $500k in business debt due to COVID. Chapter 7 was the only option. A few years later, things are much better now. But yeah, if your debt is manageable, think it through before filing.
Yep, 100% worth it. I filed chapter 11 after losing my job 10 years ago. It was tough, but it gave me a clean slate.
It took me some time to get a bank account and credit card again, but eventually, I got an Amex card, paid it off consistently, and built my credit back up. My score is now 755, and I’ve got multiple cards with low balances, a new car, and financed a furnace.
If your situation feels hopeless like mine did, bankruptcy can help you start fresh.
@Shay
Wait, don’t you still have to pay off your debt after filing?
Zeph said:
@Shay
Wait, don’t you still have to pay off your debt after filing?
Depends on the type of bankruptcy. Chapter 13, yes. Chapter 7, no. Someone mentioned chapter 11 earlier, but that’s mostly for businesses.
Zeph said:
@Shay
Wait, don’t you still have to pay off your debt after filing?
Nope. The court discharges the debts. Once you have a case number, give it to anyone trying to collect from you. If they keep contacting you, they’re violating a court order.
I’ve handled thousands of bankruptcy cases over 25 years, and there’s so much bad info online. Honestly, just talk to a local bankruptcy attorney.
Most of my clients had a 700+ credit score within 2 years. You can even qualify for an FHA loan 2 years after filing.
Bankruptcy isn’t about punishment. It’s about getting a fresh start.