When i get to my 7 years and accounts are deleted from my credit report, will my score go up?

Question

Everything on my credit report will be removed by 6/2014. i am wondering since i am on disability, would it be best to wait until these are removed vs. paying for bankruptcy. Would that be the best thing for me to do? If these say they will be removed in 2014, how much will my report go up. Will the accounts show any damage to my score once they are removed? Thanks!

Answer 1

We can't say if your score will go up in 2014 or if it will fall. It depends upon your credit profile at that time. If disability is your only income, it may be protected from garnishment. So, if you receive a summons to appear and answer to the debts, you must appear and show that your income is from a protected source. Child support, social security & SSI are two examples of protected income. But the government can still seize those funds.



To qualify for BK, you must prove that you cannot pay your debts - it's called means testing. If you have the means (money and assets) to pay your debts, you cannot qualify for Ch 7. You may qualify for Ch 13 or no BK at all.

Answer 2

Derogatory items age off your credit report 7-1/2 years from the date of first deficiency (default). This is per the FCRA and nothing restarts this clock.



The older an item, the less impact on your score. By the time these items reach the 7 year mark, they have very little impact on your score. When the age off completely, there will be little if any difference in your score.



Since these derogatory items will age off in 2 more years, it would be very foolish of you to file bankruptcy. The individual items will still age off in two years,, but the bankruptcy itself would remain for 10 years and further damage your credit. Just let these old debts age off.



You will need to rebuild your score. If you don't have an open, active line of credit,,get a credit card, even if you have to get a secured card. Use the card, wait for the statement, and pay the balance in full every month. This will build credit and avoid interest. You need at least 24 months of consistent, on time payment history to see improvement to your score.

Answer 3

Once the derogatory info is removed, it will take 24 months of activity to boost your score between 660/749 which is a good score. Even after the SOL kicks in, they can call you for the next 25 years, they just can't sue.

Answer 4

I don't know where you got this 7 year thing, but bad debt can stay on your credit report indefinitely. It all depends on the company and their desire to pursue you. Since you get SSI they cannot sue you, unless you have other income ie: work. Your credit score will NOT go up unless the accounts are "satisfied." Good luck!

Answer 5

Careful, creditors tend to sue right before this happens.

If they start calling inform them that you are on disability income only.

They cannot garnish this.

If you have money in savings, time to slowly take amounts out since they can take it.

Do you have other assets to your name?



And... why are you worried about your score?

You don't need credit any more. You are on disability, lenders are not going to lend to you easily since they can't garnish your wages.