I filed chapter 7 in 2008 after my HVAC business failed, leaving me with over $300k in debt. The housing market crash hit, and I couldn’t sell anything. I maxed out my credit cards before filing, which was dumb, but I was only 24.
Fast forward a couple of years, my credit was back in the low 700s, and I bought a new car with a 6.3% interest rate. In 2020, I got a new house with a 2.85% rate. Now my score is 822, and my only debt is my mortgage.
Bankruptcy helped me bounce back. Looking back, I’d say having debt like a mortgage or student loans after bankruptcy actually helped rebuild my credit faster.
I filed in 2011. Kept my car and house, wiped out all my credit card debt. My score dropped about 100 points at first, but it started climbing back up within a year. I was back to 720 in no time.
Ocean said:
I filed in 2011. Kept my car and house, wiped out all my credit card debt. My score dropped about 100 points at first, but it started climbing back up within a year. I was back to 720 in no time.
One of my employees filed in 2020. His credit was at 585 right after, but six months later it was 650. A year and a half later, he bought a house and two cars. Banks see it as ‘you filed, so now you can’t file again for a while.’ Another friend had a similar experience—filed, then bought a camper and truck two years later.
Ocean said:
I filed in 2011. Kept my car and house, wiped out all my credit card debt. My score dropped about 100 points at first, but it started climbing back up within a year. I was back to 720 in no time.
I want to file chapter 7, but I’m scared they’ll take my car and house.
My only regret is not doing it sooner. Filed in August, discharged by October, and my credit is already improving. Thanks to all the budgeting I did trying to dig myself out, I’m now able to save and actually build something. It feels good to finally be moving forward.