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New Member
firecraker
Posts: 2
Registered: ‎04-30-2010
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Re: Bankruptcy FAQs

I filed Chap. 7 bankruptcy in April 2004.  It was dismissed because I did not have enought assets to proceed in Nov. 2004.  How can I get the 3 bureaus to remove this from my credit report.  I have been denied credit based on the filing even though nothing was discharged!!!  I subsequently re-mortgaged my home and paid off credit card debts at negotiated amounts.  These are listed as "0" balance but with a notation "charge Off".  How can I clean up my credit report?

Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
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Re: Bankruptcy FAQs

I might change two items on the initial FAQs:

 

1.  Bankruptcy is available to anyone who lives or owns something in America.  You do not need to be a US citizen or even in the country legally.

 

2.  Under certain circumstances, filing bankruptcy can delay, if not entirely stop, criminal proceedings.  This generally happens when one can show that the intent of the criminal action is to force payment of a debt and not simply to further the ends of justice.  A prime example would be in a prosecution for bad checks where the DA and / or the police tell you that if you just pay the checks then they will let everything slide.     

IAALBNYL
Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008
0

Re: Bankruptcy FAQs

Hi firecraker,


Glad you're here.  This is a great place to learn how to rebuild credit.  First, your questions:

 

 


firecraker wrote:

I filed Chap. 7 bankruptcy in April 2004.  It was dismissed because I did not have enought assets to proceed in Nov. 2004.  How can I get the 3 bureaus to remove this from my credit report. 

Dismissed bankruptcies will continue to report on each CRB for ten years.   If you filed, it will report; either as dismissed or discharged. 

 

I have been denied credit based on the filing even though nothing was discharged!!! 

There are several companies that will offer you credit even with a BK on your report, but not all will.  Check out BK Friendly Credit Cards Listed.

 

 I subsequently re-mortgaged my home and paid off credit card debts at negotiated amounts.  These are listed as "0" balance but with a notation "charge Off". 

As long you you negotiated a payoff amount, your CR can list them as a charge off.  That means they had to charge off the part of the account that was not paid.

 

How can I clean up my credit report?

Spend some time on the "Rebuilding My Credit" forums.  If your BK was from '04, your scores can be in the healthy 700's. 


Hope that's somewhat helpful.  There's lots of folks on these forums that have been in your shoes, and lots of helpful info here. 

Just puttin' syrup on something, don't make it pancakes.
New Member
firecraker
Posts: 2
Registered: ‎04-30-2010
0

Re: Bankruptcy FAQs

Thanks beamMEup.  Lots of good information.  It seems  unfair that if the bankruptcy did not go through the credit bureaus can still report it for 10 years.  When the collection calls became incessant I bit the bullet and mortgaged my house to the hilt in order to satisfy my creditors.  My house would have been paid for in a couple of years.  Now I have a 30 year mortgage again!  I do not have any Visa, MC, Amex etc.  Only 2 store cards and 2 gas company cards.  Should I try for a major cc? 

 

I currently have scores in the 700's, mid is 729.  I want to look into refinancing my house to lower my interest rate and get out of an ARM.  I've been in this for 3 years and am now past the penalty phase.

 

I also have a child in college and will need to co-sign on loans.  We tried CITI and they turned us down. That's why this whole thing started trying to get my report cleaned up.  With the decline in housing prices my LTV is not too good so I won't be able to take on more debt to cover the tuition.

 

Any suggestions would be appreciated. 

Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008
0

Re: Bankruptcy FAQs


firecraker wrote:

Thanks beamMEup.  Lots of good information.  It seems  unfair that if the bankruptcy did not go through the credit bureaus can still report it for 10 years.  That's a common response.  Don't take it personally.  It's that mathematically, those who have filed (whether they are dismissed or discharged) are more likely to have a major delinquency in the future.  That's just what FICO does - it's a mathematical algorithm.  We are not our FICO scores :smileywink:   We kind of have to separate ourselves and look at it rationally rather than personally.  I have a BK reporting, as well, so I know how it feels.  Something about seeing it in print and associated with your name can shake anyone up.  Don't let it.  Just take it as something you need to be aware of, and know that the more information you have, the better you can manage your FICO score and how that BK reporting impacts you.  

 

I do not have any Visa, MC, Amex etc.  Only 2 store cards and 2 gas company cards.  Should I try for a major cc? 

FICO likes you to have a bank/national credit card company account.  It can be a cc, a heloc, or ploc.  It's FICO Reason Code #3.  When we app'd for a refi, our loan officer checked to be sure we had a bank/nccc for its FICO score advantage.  When I opened my first bank card, I saw a 20 point increase, when DH opened his, he saw a 29 point increase.  It was, however, also our first current cc reporting, so your mileage will vary.

 

I currently have scores in the 700's, mid is 729.  As MVV says, “One thing I will ask is where did you get those scores? No one has been able to pull their own Experian FICO score since last February. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myfico. I suggest you do an internet search for "myfico discount codes" to save a little money. You can also purchase your Equifax score at www.equifax.com and your Transunion score at www.transunioncs.com.” The biggest problem with other scores (FAKO scores) is they do not correlate with and are not predictive of FICO scores."

 

I want to look into refinancing my house to lower my interest rate and get out of an ARM.  I've been in this for 3 years and am now past the penalty phase.  We did our refi five months after CH 13 BK discharge.  We also got out of an ARM, and went traditional.  Our BK was really not an issue, even that early on.

 

I also have a child in college and will need to co-sign on loans.  We tried CITI and they turned us down. That's why this whole thing started trying to get my report cleaned up.  With the decline in housing prices my LTV is not too good so I won't be able to take on more debt to cover the tuition.

Check out the thread on Education Loans.  All of our children have graduated or are currently attending college.  We have been very happy to help them in myriad ways, but we have not co-signed for their education loans.  They have all done wonderfully.  Everyone's situation is different, but if you read and post your education loan concerns there, you will receive excellent feedback.

 

Any suggestions would be appreciated. I hope that helps!  Best wishes.


 

Just puttin' syrup on something, don't make it pancakes.
New Member
maddy1001
Posts: 7
Registered: ‎07-08-2008
0

Re: Bankruptcy FAQs

[ Edited ]

Firecraker

 

Can't you get a secured credit card at a small local bank or credit union?  All you have to do is start getting credit back.  It won't take long, and a secure credit card is easiest.

New Visitor
rockthisscore
Posts: 2
Registered: ‎04-24-2011
0

Re: Bankruptcy FAQs

I filed BK in 8/2008. A couple of the credit cards included in the bankruptcy still have late payments and key derogatories on my credit report. Is this allowed? I was under the impression that once it was included in bankruptcy the payment information was gone and only the fact that it was included in bankruptcy remained.

 

any insight into what i should do is greatly appreicated!

Valued Member
maggie88
Posts: 47
Registered: ‎04-04-2008
0

Re: Bankruptcy FAQs

When you file bankruptcy the negative report remains on your file for 10 years. That's sad  ...but that is how it goes.  Usually after a year you can rebuild your credit again.

Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008
0

Re: Bankruptcy FAQs


maggie88 wrote:

When you file bankruptcy the negative report remains on your file for 10 years. That's sad  ...but that is how it goes.  Usually after a year you can rebuild your credit again.



Just a quickie clarification.

 

A Ch 7 will remain on your credit report for 10 years.

A Discharged CH 13 will remain on your credit report for 7 years.

A Dismissed CH 13 will remain on your credit report for 7 years on Ex and TU; for 10 years on EQ.

 

And you can begin rebuilding immediately.  No need to wait.

Hope that's helpful!

Just puttin' syrup on something, don't make it pancakes.
Valued Member
maggie88
Posts: 47
Registered: ‎04-04-2008
0

Re: Bankruptcy FAQs

Thanks Beamme up

 

That's good information to know. Presently after 2 years of my own, I am more choosey and think before I obtain any credit. Less to me is a whole lot better.  :smileyhappy:


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