Paid off car loan after BK, but CRs report as incl in BK. Effect on interest rate?

[KCjayhawk]

My Ch7 BK was discharged in July 09.  Before, during & after the BK I never missed a payment on my car loan, and made the final payment in Dec 2010. I had told my BK atty I wanted to affirm my car loan, but he didn't follow through, so I (unknowingly) didn't include the proper paperwork to affirm it in my BK. I didn't realize it hadn't been affirmed until after I had paid it off and by then it was too late. Consequently, all three CR's show it as "included in BK."

I'm worried this will negatively affect my auto-enhanced FICO score, even though all three CR's show balance owing on the loan as $0. (I have one additional previous car loan that was paid off and is reported accurately on all three CR's.)

My two most current scores are 680 (TU) and 688 (EQ).  I have three unsecured CC's with $4,000 total credit limit, including two CapOne ($3,000 credit limit combined). I use them all and pay off the balances in full each month. No other debt and a secure job (w/annual income $55K).

Any ideas on what kind of rate I might get, or advice on how to make sure auto loan lenders know I actually paid off my previous car loan (and didn't discharge it in BK)?

I've heard good things about the CapOne auto loan ("blank check"). Could having CC's with them decrease my interest rate?

Thanks in advance for any help!

[Creditaddict]

I would file disputes with all 3 CR to say this account was "Not" included in the BK.  You could send in your accounts included page and if this one is not on it, they should remove that and just show paid as agreed, closed, $0 etc.

[KCjayhawk]

Thanks for your reply!

I already tried disputing it (and also checked with two BK attorneys), but found out that, unfortunately, it is technically being reported correctly on my CR's, since the car loan was not affrmed during the BK. The fact that I did eventually pay it off doesn't show up in my CR, except as a "$0" balance. There is nothing I can do about how it shows on my CR's at this point (until the BK falls off in 7 more years).

My question is whether it would help if I provide documentation to potential lenders showing I did, in fact, pay off the loan in its entirety? I know I can get a car loan....I just want to get the lowest rate possble.

[Creditaddict]

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@KCjayhawk wrote:

Thanks for your reply!

I already tried disputing it (and also checked with two BK attorneys), but found out that, unfortunately, it is technically being reported correctly on my CR's, since the car loan was not affrmed during the BK. The fact that I did eventually pay it off doesn't show up in my CR, except as a "$0" balance. There is nothing I can do about how it shows on my CR's at this point (until the BK falls off in 7 more years).

My question is whether it would help if I provide documentation to potential lenders showing I did, in fact, pay off the loan in its entirety? I know I can get a car loan....I just want to get the lowest rate possble.

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I'm confused, not affirmed means that you did not put it in the BK no?

It sounds like what I'm dealing with on my student loans, I paid, they can't be written off in BK, why should I have 2 negative accounts based on "INB" when that is not possible... and as soon as BK was done the loans were transferred back to regular Fed Account and they are all Paid as agreed but they say the 2 accounts showing in the negative are legit!!

[KCjayhawk]

Car loans are secured, so they're different from other types of debt you might include in a BK. You have to positively affirm it during the bankruptcy proceedings or else it is automatically "included" in the BK, even if you intend to pay it off in full, and eventually do.  If you include it in the BK, you can quit making payments and they can't repossess it. If you affirm it, and quit making payments, they can repossess it. You can't affirm the debt after the fact (i.e. after you've paid it off); by then, it's too late.

I didn't know at the time I filed BK that it required addtional paperwork and my BK attorney didn't tell me that, so when he forgot that I wanted to affirm the car, I didn't even know to remind him about the affirmation paperwork. I just assumed it was affirmed because I was continuing to make the payments. Learned that lesson the hard way!

[JenniferinFL]

I reaffirmed my car and even though I never made a late payment it is listed as a potentially negative account. The only difference is that it is scheduled to change to a postiive account in 2016. Which is weird wording.. lol

[Wantgdcrd]

I had similar problem, I had to include my car ( as all debts have to be included) in my bkrptcy Jan 2009.  I did reaffirm my 2003 car with GMAC , Was never late 5 yrs, paid the 10,000 balance off by end of that year in lump sum. ( then the car died)  They included it as IIB on my cr.  I disputed in 2009. nothing was done.  In March this year

I disputed it again with all 3 Credit bureaus.  I said it should be showing positive,  not negative.  As I paid on time and paid off. It showed paid as agreed but with negative flag

and as a negative included in bankruptcy.  I just got my dispute back and all 3 just removed it totally from my report.  so I got no positive credit from it.  But it is gone from my reports.   So dispute it again and again ..