canceled bk showing up on report

[dds2be]

I have a question that needs answering for my parents. In 2011, my parents were going to file CHP 13 BK, and it was supposed to officially take effect at the end of January 2011,  but they decided to back out and not go through with the BK. They did technically file but they backed out before the BK took effect. Their credit report shows a dismissed chp13 BK. Can they dispute to have it removed if it was never made offical, and no payment was made? Thanks!!

[TRC_WA]

I don't believe so...

You said they "did technically" file Ch 13... it was dismissed (for whatever reason) so unfortunately I don't see anything to dispute.

A discharged Ch 13 stays on your report for 7 years from date of filing... if dismissed it stays for 10 years.

[dds2be]

So even if they never paid into it, and they were still in the time frame to back out, a dispute cannot be made to remove it? I mean, if it was made official by the court, and then dismissed I understand it would remain as a dismissal on CR. This BK stuff is confusing, and they wanted to qualify for a home loan, but it would need to be 4 years post filing, so I thought I would look into disputing it since it was never made court official. Have you heard of that being done?

[09Lexie]

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@dds2be wrote:

So even if they never paid into it, and they were still in the time frame to back out, a dispute cannot be made to remove it? I mean, if it was made official by the court, and then dismissed I understand it would remain as a dismissal on CR. This BK stuff is confusing, and they wanted to qualify for a home loan, but it would need to be 4 years post filing, so I thought I would look into disputing it since it was never made court official. Have you heard of that being done?

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Once a bk petition is filed it is official. Whether or not your parents paid into or it 'took effect' is irrelevant.  The filing was done and since it is a dismissed Ch 13, it will remain on their CR's for 10 years with EQ. 

[StartingOver10]

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@09Lexie wrote:

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@dds2be wrote:

So even if they never paid into it, and they were still in the time frame to back out, a dispute cannot be made to remove it? I mean, if it was made official by the court, and then dismissed I understand it would remain as a dismissal on CR. This BK stuff is confusing, and they wanted to qualify for a home loan, but it would need to be 4 years post filing, so I thought I would look into disputing it since it was never made court official. Have you heard of that being done?

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Once a bk petition is filed it is official. Whether or not your parents paid into or it 'took effect' is irrelevant.  The filing was done and since it is a dismissed Ch 13, it will remain on their CR's for 10 years with EQ. 

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Lexie is right. The fact of filling out, signing and filing the petition with the court is what makes it official. The court process is the review and approval process of the proposed Ch 13  repayment plan.  The fact that your parents elected not to complete the BK does not mean they were in a time frame to "back out".  The BK is filed or not filed. The time to back out is before filing. Backing out any time after filing is a dismissal. A dismissal stays on the cr report for 10 years.  If they had elected to complete their Ch 7, then it stays on the report for 7 years.