Bankruptcy

[Capt702]

My wife and I filed at the end of 2005 and after a lot if issues were ready to finalize in 2006. At the last minute we finally got the Mortgage company to allow us to pay off the loan after getting another lender. After that major issue resolved, we decided to stop the bankruptcy and work out all issues with other creditors. On our reports it shows the bankruptcy as discharged not withdrawn and it has affected our availability to get credit ( as rejections are stating past bankruptcy as a major reason ). Since we did not complete the process I thought it would not even show up as all creditors right after started contacting us again to pay back amounts owed. We have paid off many of them and have arrangements with the others but still we have the bankruptcy hurting us. Can someone tell me what can be done to fix this issue.

Thanks

[CreditBob]

Once you have filed for bankruptcy it can not be removed. Why did you file if you are paying off your creditors?  Discharged 13 stays on for 7 years         Discharged 7 & 11 stays on the report for 10 years. A dismissed bankruptcy with any chapter stays on for 10 years.

[ByrdMan]

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CreditBob wrote:

Once you have filed for bankruptcy it can not be removed. Why did you file if you are paying off your creditors?  Discharged 13 stays on for 7 years         Discharged 7 & 11 stays on the report for 10 years. A dismissed bankruptcy with any chapter stays on for 10 years.

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Friend has dismissed Ch13 from 2003 (paid creditors early) and it states that it will remove in 2010.

Message Edited by ByrdMan on 04-01-2009 12:30 AM

[spg1221]

I have a question. I understand that bankruptcy stays on your report even if you withdrew it.

But, what if bankruptcy was filed under your name and it was not you that filed it. What if your spouse filed it and falsely signed your name. And then withdrew it. How can you go about getting this taken off your report? Or can you?

[ByrdMan]

Bumpity bump.

[mrthomas]

I'm a bankruptcy attorney.  Debtors commonly misunderstand the difference between discharged and dismissed.  For instance, Byrd's friend had a "dismissed" Chapter 13 case that paid off the creditors early.  If the creditors are paid off, you get a discharge, not a dismissal.  I suspect the GF actually received a discharge.    A discharge is a good thing.  A dismissal is a bad thing.   

There is no such thing as a "withdrawn" bankruptcy.  A bankruptcy is either dismissed (voluntarily or involuntarily) or discharged (completed).  A voluntary withdrawal is a dismissal.  A dismissal is worse than a discharge, from a credit-score standpoint.  You can't get that off your credit report, unless...

...As for the case of the ex-spouse (or anyone) signing a person's name to a bankruptcy petition without that person's permission, that situation is correctable.  To fix it with a CRA or other creditors, you need a Court Order from the Bankruptcy Court where the bankruptcy was filed.  Contact a bankruptcy attorney in that city for more information.  The ex-spouse appears to have committed a fairly serious federal crime.  In the Bankruptcy Courts where I practice, the spouse would be prosecuted to the fullest extent of the law, with a fine up to $250,000 and up to 5 years in prison. 

Message Edited by ByrdMan on 04-01-2009 12:29 AM

[granny031350]

to mr thomas:  I have 2 dismissed chapter 13's but am about to complete my chapter 13 (the third time is the charm, right)   and i know they will stay on my record.  But will creditors see the discharged one over the dismissed ones?  (I got divorced between the 2nd and the 3rd filing)  Old law and almost done!

[Browsing]

I'm not an attorney but I beg to differ with Mr. Thomas (the bankruptcy attorney) that a dismissal is "worse than a discharge from a credit-score standpoint."  If the debtor's dismissal is a "voluntary dismissal" and his debts were paid off or arrangements were made with his creditors, common sense tells me that creditors prefer to get paid, period.  A discharge, depending on the chapter filed, is either fully discharged -- the creditor gets zip -- or the creditor gets paid practically zero to the dollar (what they're actually owed).  A bankruptcy, regardless of whether it is discharged or dismissed, will remain on a person's credit report for up to 10 years (sometimes less than).  This info is clearly stated in all credit reports.  Upon the request of an individual, credit reporting agencies will put an explanation on his credit report explaining discrepancies, delinquencies, etc. for potential creditors to see.  I suggest that this guy put an explanation on his credit report that his bk was "voluntarily dismissed" and that his debts have been paid or an agreement with creditors have been made. 

Message Edited by Browsing on 02-08-2008 01:47 AM

[cujo31]

Bottom line, is there any way to get a BK deleted off your credit? My friend has until 2011 till it drops off, but would like to attempt it sooner. We did a good will letter to the attorney herself, but no dice. Type: Chapter 7 Bankruptcy Chapter 7 Bankruptcy Chapter 7 Bankruptcy Status: Discharged Discharged Discharged Date Filed/Reported: 03/01/2001 03/28/2001 03/2001 How Filed: Joint Joint Joint Closing Date: 07/01/2001 07/10/2001 Is there anything that can be done? A loophole in the paperwork? How bad does this kill the credit? I was able to over turn one item on the credit by proving it was NOT included in the BK, so that bumped him up a bit. Now if I can just get rid of that derogatory / charge-off from Cap One John

[canmon]

Actually, the attorney is correct. When you are trying to get new credit with a dismissed bankruptcy it's more difficult. Most creditors, lenders and rental companies want a discharged bankruptcy. I know this from experience. I began meeting with a bankruptcy attorney in November of 2004. I was finally able to pay off the attorney in January 2005. The bankruptcy was filed in February 2005. As luck would have it I received a new job with a significant pay increase in March of 2005. When I met with the trustee in April, he inquired about my income and I was forced to tell him about the new job. He dismissed the bankruptcy on the spot. Since that time I have been slowly paying off my debts (almost done - woo hoo). I thought I was doing a good thing by paying the debts myself. I thought it would make me look good. To my dismay, I have been unable to rent an apartment and unable to get a car loan among other things; simply because my bankruptcy had not been "discharged". I've tried to explain the situation letting them know that it was dismissed and why it was dismissed but no one will consider this. All they care about is a discharged bankruptcy. There has to be a way to fix this so that people like myself aren't negative affected by dismissed bankruptcies. Its kind of messed that I have to live with this on my credit for the next 8 years without any of the benefits.