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Mortgage included in bankruptcy..?

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silly34
Regular Contributor

Mortgage included in bankruptcy..?

Greetings,

 

I apologize if this has been discussed previously, there is quite a bit of information on these forums and I haven't located it as of yet.

 

I'm a previous member when my wife and I were rebuilding our credit (successfully) and were able to purchase our first home in 2008.  Due to a job loss we had to file for bankruptcy (ch7) in 2012.  The house was not included nor were any of our vehicles.  However, our mortgage is showing included in bankruptcy on our credit report.  Is this normal?  The bankruptcy was specifically for medical, credit, type bills.

 

After 2 years of the BK I applied for a CapOne Platinum card and surprisingly was approved for $3k limit.  I suspect I am going to take a hit with my scores for a while until I get the account aged with history but at this point I have to start somewhere.

 

Thanks!

 

 

Message 1 of 5
4 REPLIES 4
bstone
Frequent Contributor

Re: Mortgage included in bankruptcy..?

If you filed BK after you purchased your home and cars, they were included.  They have to be per federal law.  That being said, reporting as IIB is accurate.  As long as you maintain your payments the balance will continue to drop, it just won't reflect on your credit.

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Message 2 of 5
StartingOver10
Moderator Emerita

Re: Mortgage included in bankruptcy..?


@silly34 wrote:

Greetings,

 

I apologize if this has been discussed previously, there is quite a bit of information on these forums and I haven't located it as of yet.

 

I'm a previous member when my wife and I were rebuilding our credit (successfully) and were able to purchase our first home in 2008.  Due to a job loss we had to file for bankruptcy (ch7) in 2012.  The house was not included nor were any of our vehicles.  However, our mortgage is showing included in bankruptcy on our credit report.  Is this normal?  The bankruptcy was specifically for medical, credit, type bills.

 

After 2 years of the BK I applied for a CapOne Platinum card and surprisingly was approved for $3k limit.  I suspect I am going to take a hit with my scores for a while until I get the account aged with history but at this point I have to start somewhere.

 

Thanks!

 

 


^^^When you file for Ch 7, each and every debt is included in your bankruptcy. You can not pick and choose which debts to include or not. It is whole hog or nothing. Smiley Happy

 

Now what you may have done is known as a 'ride through' where you are still making payments but the debt is discharged in Bk. This is usually the best position for you to be in when you have been successfully discharged from a Bk. The exception would be if you have a lot of equity in the property and a bad servicer (like Ocwen). 

 

So yes, your Bk is reporting correctly.

Message 3 of 5
silly34
Regular Contributor

Re: Mortgage included in bankruptcy..?

Excellent thank you for the quick responses!

 

B.

Message 4 of 5
Anonymous
Not applicable

Re: Mortgage included in bankruptcy..?

I have a similar problem. My debt was included in BK, and initally it was included in BK and was not reporting. Now after some years it is being reported on credit including all the lates. The loan was transferred last year and after some thought I remembered it being included in BK. So, can it legally be reported by the previous bank that had the loan when I filed BK 7.  Its listed under closed accounts as transfer or sold. Nonetheless the new mortgage is reported on time pays. I want to request it be removed (old mortgage company) from credit file. Will this work? 

Message 5 of 5
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