There is a forum post here from a BK7 filer who is suddenly a FICO expert. I believe the post is full of information that is just wrong.
Paste below… I’ve highlighted my issues in red.
I have extensive experience with this topic. I recently called Experian to straighten out a few things.
1) BK will stay on your CR for the legal time period (10 years for BK7)
2) All acounts IIB will report as derogatory. The scoring will have a negative impact for 2 years post discharge. Then your scores will improve and the derogatory tradelines will not affect your score 2 years post discharge. The 2 years to 700 road map worked for me. So after 2 years post BK7, you will get re-bucketed until the BK7 ages off. There are 2 negative buckets and 6 (or more) positve buckets. So once you go from negative bucket 1 to negative 2, your scores will be range bound.
3) I had a Charge-Off that was IIB and I asked TU for an Early Exclusion and my score DROPPED because I lost AAOA as this was a 15 year account and my AAOA is 9 years. So this dropped my AAOA by 6 months.
4) So 2 years post discharge, the scores will be “range bound” from 700~730 for the remained of the BK reporting. Once the BK ages off, scores jump 50~100 points. So if your file is clean until the BK ages off; your scores should be near 800.
So bottom line, keep your file clean after BK7 discharge. Continue to improve scores to the 700 mark at the 2 year discharge date. The “2 year to 700 Guide” from Soul Master is a great roadmap. All Tradelines that are IIB add to the AAOA and are a POSITIVE (assuming your T/L is a higher age than your AAOA). There is ZERO advantage to remove the IIB accounts UNLESS they negatively affect your AAOA. Of course YMMV.
Ironically the poster also claims that because I filed BK13 that the info in red doesn’t apply to me… did I mention that today is my 2 year discharge date and my scores haven’t moved?
Bottom line is OP is saying FICO score isn’t affected by an IIB TL 2 years after discharge…
I say that is completely and totally 100% wrong. BK13 or BK7 doesn’t have a thing to do with it.