Negative History Reporting Per Trade Line - Post BK Filing Date

[CH100]

Hello myFico,

I had a general question on Negative History reporting per trade line, specifically when it could and when it could not  be reported on the individual trade line with regard to the day of filling of a bk and the day of discharge of a bk?

I read that the trade lines are not to report/show negative history once the day of filing of a bk has taken place. 

I understand that the trade line should zero out and report discharged, etc. subsequent to the day of discharge of a bk.

Is there legal precedent / case reference regarding this which concludes that negative history on a trade line cannot be reported past the day of Filing of a bk?

Thank you!

[0REDSOX7]

You have been misguided - previous payment history prior to filing bankruptcy can remain - as there are no laws that dictate this except that what is report is accurate.  If you were 30/60/90 days late prior to your filing date, then that will remain on your CR for up to seven years plus six months from the DoFD.  All that is required for accounts that are IIB, it must state that it was IIB and to show a zero balance.

I have noticed that TU and EQ do in deed delete the payment history, but on EX, it does remain, and will definately impact your score.

I hope this makes sense

[SoulMaster]

Sox beat me too it. I would add that TU and EQ tend to delete, it's not automatic and may reappear if/when the creditor updates the record.

Also, IIB is the proper status once the creditor is notified, which can be weeks after filing.

In addition, the balance doesn't go to zero until discharge (because it's NOT zero until discharge).

Finally a correction to what Sox said: If you do discharge, and the TL says 0$ balance, closed, IIB; the lates don't hurt you in most models. That status is a rest. More importantly, analysts rarely care about what happened before the BK... They care about the rebuild after.

-SM

[SoulMaster]

Silly cellphone.... Misuse of "too" in first sentence. Should be "to".

[CH100]

You have been misguided,  OK -

previous payment history prior to filing bankruptcy can remain OK-

as there are no laws that dictate this (..."this"...you are refering to exactly what when you say this? the BK portion of the reporting process?, the entire reporting process in general to the CRA by the OCs?)

except that what is report is accurate, OK. 

If you were 30/60/90 days late prior to your filing date OK, then that will remain on your CR for up to seven years plus six months from the DoFD, OK.  All that is required for accounts that are IIB, it must state that it was IIB and to show a zero balance, OK.

But was is the correct reporting between the date of filing and the date of discharge regarding HIstory?

What is correct on History once the OC is noticed of the Filing of BK?

 1) Continue reporting history as if nothing has happend?

 2) Suspend all activity with regard to the accounts, including reporting history until conclusion of disposition of the case filed?

I have noticed that TU and EQ do in deed delete the payment history, but on EX, it does remain, and will definately impact your score - OK.

I hope this makes sense...GETTING THERE!

Thank you...trying to get some specifics understood here.

I appreciate all of your help!

[SoulMaster]

I don't know why any of this matters, but it continues to be late until the KD (key derogatory) is recorded.  The KD in this case is the BK Discharge and the proper date of the KD is your discharge date.

The only reason this could possibly matter is if you were trying to get credit while you were still in the BK7 (between filing and discharge).  Don't do that (seriously, don't do that) and none of this matters at all.  What does matter is that once you're discharged all included debts say IIB/$0/Closed.

-SM

[SoulMaster]

In other words... it's late until it's discharged.  

BECAUSE if your BK is dismissed, it goes right back to Delinquent/Non-$0 Balance/Closed(or open, as the case may be).

-SM

[CH100]

Sox beat me too it. I would add that TU and EQ tend to delete, it's not automatic and may reappear if/when the creditor updates the record. OK

Also, IIB is the proper status once the creditor is notified, which can be weeks after filing. OK

In addition, the balance doesn't go to zero until discharge (because it's NOT zero until discharge). OK

Finally a correction to what Sox said: If you do discharge, and the TL says 0$ balance, closed, IIB; the lates don't hurt you in most models. OK

That status is a rest. ?  Not sure what this is?

More importantly, analysts rarely care about what happened before the BK... They care about the rebuild after. Yes, but with some exceptions (manual review, protracted BK case time line, negative history accumulating post filing and prior to discharge, etc.)

Thanks for your help!

[CH100]

Thank you very much for the for the explanations. 

[SoulMaster]

My last post was sort of jerky: I didn't mean it to be.

I don't know why I'm a jerk today... a lot of clients calling with silly questions I guess.  Is it a full moon?

Anyway, CH100... welcome to the forums!  Here you'll find a wealth of information... some of it is 100% accurate, some of it is horribly wrong, but we're all here trying to help the best we can.  

Cheers and you're welcome,

-SM