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Since deciding not to hire a CRO and repair my credit myself, I've been diligently reading CB now for several weeks.

 

I want to repair mine and my wife's credit to be able to apply for a mortgage by end of year. Although we own our own house now, it seems like it's not going to be realistic to do.

 

I'm seeing how people are saying to read read read and that this is a longterm journey.

 

I almost feel like filing BK as my cousin had 700+ scores within 12 months of filing, got 2 new cars at 0% financing, and credit cards galore.

 

Is it really going to take years to rebuild this on my own or is BK an easier realistic option?

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Is it really going to take years to rebuild this on my own or is BK an easier realistic option?

 

Yes, it's going to require patience, (more patience if you file for BK).

 

When you reference "Rebuilding" vs. "Filing for BK" I have to wonder what you're talking about, (these are 2 different things).

 

Are you trying to improve your "Credit Score" or are you trying to get out of the legal responsibility to pay back debt you've acquired?

 

There is such a concept as "Strategic Bankruptcy", and this is something best discussed with a competent Bankruptcy Attorney.

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How can BK require more patience than repairing my credit? My cousin hit the reset button with BK, and credit card companies were throwing themselves at him. He got a few and charged items and maintained a perfect payment history. Within 12 months he had 700+ scores and was able to get almost anything. In addition, the countless hours km thinking I'm going to have to put in is debilitating and very disheartening.

 

To clarify, I guess I'm trying to repair and improve my credit scores to obtain purchasing power again (i.e. Credi cates, car and house loans). Getting out of debt would also be a goal.

 

Never hears of strategic BK.

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Sounds like you're looking for a quick shortcut, and unfortunately I don't know how to advise you.

 

The term "Strategic Bankruptcy" refers to a financial analysis methodology, (NOT a BK chapter in Federal Law).

 

Think in terms of a person or business entity that is suffering from a financially crushing debt load.

 

Given an objective of long term financial stability, (including access to credit markets at reasonable interest rates), what is the better/quicker option?

 

#1: Burn all your current un/under secured lenders and start from scratch.

 

#2: Don't, (pay what you owe and wait until lenders consider you creditworthy again).

 

It's a pretty straightforward analysis. don't think in terms of statements like "Life Happens/Happened" as lenders don't care and neither should you. :wave:

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I'm not looking for a shortcut but I didn't know this could take years to recover. I'm salty also of the fact that I have had an impeccable track record for 22 years and all it takes is to miss 2-5 months of payments due to a very legitimate reason such as a severe illness coupled with the household sadly losing employment and basically your credit is destroyed. 22 years vs a few months over a legitimate reason. Seriously, this credit game is a joke!

 

Then to see my cousin file BK which wrote off 80k in CC debt and a deed in lieu foreclosure and did so illegitimately (living way above his means, vacations, buying all kinds of irrelevant materialistic things) to having stellar credit within 12 months makes me want to puke.

 

I'm just frustrated.

 

@Chirs58, I really appreaciate you truly trying to help me. I'm just disgusted by how "rigged" this credit system truly is.

 

Just to ask once more, CRO's are really not worth it? Again, not trying to find a short cut but I guess when I think of the countless hours I'm going to have to put into this, I guess you can say, I am looking for a shortcut.

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I'm not looking for a shortcut but I didn't know this could take years to recover. I'm salty also of the fact that I have had an impeccable track record for 22 years and all it takes is to miss 2-5 months of payments due to a very legitimate reason such as a severe illness coupled with the household sadly losing employment and basically your credit is destroyed. 22 years vs a few months over a legitimate reason. Seriously, this credit game is a joke!

 

Then to see my cousin file BK which wrote off 80k in CC debt and a deed in lieu foreclosure and did so illegitimately (living way above his means, vacations, buying all kinds of irrelevant materialistic things) to having stellar credit within 12 months makes me want to puke.

 

I'm just frustrated.

 

@Chirs58, I really appreaciate you truly trying to help me. I'm just disgusted by how "rigged" this credit system truly is.

 

Just to ask once more, CRO's are really not worth it? Again, not trying to find a short cut but I guess when I think of the countless hours I'm going to have to put into this, I guess you can say, I am looking for a shortcut.

 

Either route won't happen overnight. There are a lot of factors to consider. If the debt is too much for you to handle then maybe you should talk to a BK attorney.

 

I am 4 years post filing a Chapter 7. You can have the most ideal rebuild and it still doesn't mean that you get anything you want. There is a lot more to obtaining an approval than a credit score. I have a 780 EQ and 801 TU Fico scores and some creditors treat me like I have the plague. So don't let your bragging cousin tell you about how great it is because it isn't.

 

Either one will take time. If you are now gainfully employed and you can pay your bills then be thankful and do so. If your main goal is to get a mortgage then talk to a mortgage broker and ask how many months of on time payments will it take for you to obtain a mortgage, then take it from there. I can tell you that if you file a chapter 7 it will take you at least 2 years from the discharge date to obtain a mortgage.

 

Unfortunately the credit game can be unforgiving to life's circumstances. PATIENCE and persistence is the key to redemption.

 

I wish you the best.

Edited by steelers1
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Here's something you may not be thinking about: you only see what your cousin is showing you. He/she may be getting countless phone calls, dunning letters, who knows! Ultimately, you can't worry about what someone else is doing. You have your life, and it's up to you to determine how to manage it. You can make order out of chaos, or settle in with the chaos and let the chips fall where they may.

The CRO's... how can you be sure they won't just take your money and do nothing? I'd be too paranoid to trust them.

As for the "work" you have to do to clean things up, and time involved - consider how you solve problems in everyday life. You take the entire mess, and start with step one. Just one step at a time. It's not that hard. It's not that time consuming. You just do one step. Then, you worry about step two.

Maybe some will chime in and help you lay out an action plan. I've never had to make a plan, so I'm the last person to assist in that area. But, from a psychological perspective, if your debt is from a tragedy/one-time occurrence, then you can recover pretty quickly. If it's from a lifestyle issue, then you've got real troubles, because you have to change yourself.

Step one is all you need to worry about.

A good start is to get your actual credit reports and ensure they're accurate.

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I'm not looking for a shortcut but I didn't know this could take years to recover. I'm salty also of the fact that I have had an impeccable track record for 22 years and all it takes is to miss 2-5 months of payments due to a very legitimate reason such as a severe illness coupled with the household sadly losing employment and basically your credit is destroyed. 22 years vs a few months over a legitimate reason. Seriously, this credit game is a joke!

 

Your credit report simply tells future creditors whether or not you paid past creditors on time. It isn't illogical that they'd want to know that.

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I'm not looking for a shortcut but I didn't know this could take years to recover. I'm salty also of the fact that I have had an impeccable track record for 22 years and all it takes is to miss 2-5 months of payments due to a very legitimate reason such as a severe illness coupled with the household sadly losing employment and basically your credit is destroyed. 22 years vs a few months over a legitimate reason. Seriously, this credit game is a joke!

Your credit report simply tells future creditors whether or not you paid past creditors on time. It isn't illogical that they'd want to know that.

There is no compassion in the world of credit. If there was, it would be more expensive for everyone.

 

Did I mention, there is no compassion in the world of credit.

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Bk worked well for me

I am only 2 years past bk and this is my list

Of the rebuild

 

 

Nfcu. $25,000

Nfcu cloc $15,000

Discover $23,000

Blispay. $5,000

Quick silver $7.250

Venture. $11,000

PenFed. $10,000 promise

Amazon. $5,000

PenFed power cash $33,000

Savor card cap1 $11,500

New card Amex nfcu $9,300

 

 

 

 

 

I'm not looking for a shortcut but I didn't know this could take years to recover. I'm salty also of the fact that I have had an impeccable track record for 22 years and all it takes is to miss 2-5 months of payments due to a very legitimate reason such as a severe illness coupled with the household sadly losing employment and basically your credit is destroyed. 22 years vs a few months over a legitimate reason. Seriously, this credit game is a joke!

Your credit report simply tells future creditors whether or not you paid past creditors on time. It isn't illogical that they'd want to know that.

There is no compassion in the world of credit. If there was, it would be more expensive for everyone.

 

Did I mention, there is no compassion in the world of credit.

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Bk worked well for me

I am only 2 years past bk and this is my list

Of the rebuild

 

 

Nfcu. $25,000

Nfcu cloc $15,000

Discover $23,000

Blispay. $5,000

Quick silver $7.250

Venture. $11,000

PenFed. $10,000 promise

Amazon. $5,000

PenFed power cash $33,000

Savor card cap1 $11,500

New card Amex nfcu $9,300

 

 

 

 

 

 

I'm not looking for a shortcut but I didn't know this could take years to recover. I'm salty also of the fact that I have had an impeccable track record for 22 years and all it takes is to miss 2-5 months of payments due to a very legitimate reason such as a severe illness coupled with the household sadly losing employment and basically your credit is destroyed. 22 years vs a few months over a legitimate reason. Seriously, this credit game is a joke!

Your credit report simply tells future creditors whether or not you paid past creditors on time. It isn't illogical that they'd want to know that.

There is no compassion in the world of credit. If there was, it would be more expensive for everyone.

 

Did I mention, there is no compassion in the world of credit.

With little exception your creditors know you can't file BK again for another 6 years. That's one of many reasons why they through credit at people fresh out of BK. They got you by the balls.

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There are no quick and easy fixes no matter which path you take despite what you've stated about your cousin. A BK is very limiting (I've been through it myself) and it takes a long time to recover from one.

 

IMO you're better off fixing your credit on your own as you'll be much more knowledgeable about credit and finances and hopefully will have better practices in place to prevent or at least partially mitigate such issues in future. One example is having a liquid emergency reserve that covers at least 6 months if not much more. Looking for quick fixes is a great way to end up right back where you are quickly.

 

Creditors don't care what your reasons(s) are. All that matters is risk of default and your track record is all they have to go on. It doesn't take much to trash your credit no matter how much you've built up though that doesn't mean it's "rigged". Plenty of people have no issues maintaining their credit. If you think the credit game is a joke you certainly don't have to play it. You can use the Dave Ramsey approach and/or just save up for everyting.

 

To clarify, I guess I'm trying to repair and improve my credit scores to obtain purchasing power again (i.e. Credi cates, car and house loans). Getting out of debt would also be a goal.

The latter is going to be an important part of the former -- especially for your revolving accounts.

 

If you want input on what it's going to take then give us some details.

Edited by takeshi
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Thanks for the feedback everyone. This is just so disheartening.

 

 

 

If you think the credit game is a joke you certainly don't have to play it. You can use the Dave Ramsey approach and/or just save up for everyting.

 

This is unrealistic. Live by default forces you to play the game. If you want to live in the woods and have nothing, yes you're right. However, you have to have credit because everything is tied to it. If you want to rent a car to go on a vacation for a weekend, they require a credit card. If you want to rent or buy a home, credit scores are required. Car insurance? Yep, credit scores effect premiums.

Dave Ramsey? Phhfff....I love him and hate him at the same time. Easy for him to sideline quarter back everyone life while he sits on millions of dollars without a care in the world, financially speaking. If I was to live within the constraints of his advice, I'd be living in a trailer park and riding a bicycle from 1982 buying clothes from the Salvation Army for .80/lb. Come on! Let's keep 100% here. Life is very expensive and credit is required to obtain loans so we can "live" by stretching the loan amount over "bite size amounts" called monthly payments.

I'm just saying the credit system shouldn't destroy someones credit life after having an impeccable history of 22 years. They should have "common sense underwriting" and be like, "Oh he must have had a tragic life event to suddenly stop paying on everything after so many years of untainted payment history across 27 merchant accounts".

So guys what should I do? My business is now doing fairly well again and hopefully it will maintain and grow. I never missed a mortgage payment throughout everything so that is good. I've had people review my credit and they said it's not that bad because you have a lot of good payment history. The issue is, I owe credit cards (27k to Citibank, 16k to Citibank, my wife 15k to Citibank, 2k to Amex, 300 to Macys, 500 I think to Home depot, and several medical bills). I stopped paying on everything 2/2016 and haven't made a payment since.

I really don't want to file BK but will if I have to. I am not in a position to do a settlement or a repayment plan just yet. A lot of stuff is charged off. So can I still rebuild my credit though if they are reporting late? Should I post my credit report data (without posting social security numbers and what not)? Please, please help me guys and gals. I genuinely ask for you help. I'm willing to do whatever I have to. Thank you.

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Thanks for the feedback everyone. This is just so disheartening.

 

 

 

If you think the credit game is a joke you certainly don't have to play it. You can use the Dave Ramsey approach and/or just save up for everyting.

 

I'm just saying the credit system shouldn't destroy someones credit life after having an impeccable history of 22 years. They should have "common sense underwriting" and be like, "Oh he must have had a tragic life event to suddenly stop paying on everything after so many years of untainted payment history across 27 merchant accounts".

 

 

You should open a second business lending money, and use this as you underwriting philosophy.

 

I promise you a never-ending stream of customers, followed by insolvency.

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