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Valued Member
GBguy
Posts: 46
Registered: ‎12-02-2013

reaffirmation agreement and IIb

Is a creditor allowed to report a debt as included in bankruptcy if the debt has been reaffirmed? I have one showing as an adverse account that was paid in full as the debt was reaffirmed.
Chapter 7 Discharge 9/2013
FICO scores as of 1.27.14
Eq- 574
Ex- 629
Tu- 612
Cap 1 Secured ($49 Dep - 200 Limit) Reporting since Nov 2013
Valued Contributor
ezdriver
Posts: 1,458
Registered: ‎08-24-2013

Re: reaffirmation agreement and IIb

Because the debt was reaffirmed and therefore not discharged, it should not report as included in bankruptcy. The creditor will likely stop reporting payments as well. That means the account should be reporting a status just before bankruptcy was filed and and will likely be updated when the balance due is paid in full. That is my opinion.



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


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Frequent Contributor
USF813
Posts: 317
Registered: ‎06-04-2013

Re: reaffirmation agreement and IIb

I'd get ahold of the creditor and have them update your CR. I reaffirmed my mortgage and the CU stopped reporting it to EQ. To say I was a bit miffed that the neglected to report the #1 best thing you can have reporting is an understatement! You did them a favor by keeping the debt, the least they can do is show it reaffirmed and include all positive payment history. :smileyhappy:
Chapter 7 Discharged 12/2009
FICO EQ: 693 (5/23/14)
FICO TU: 680 (Barclays TU 5/23/14)
FICO EX: 667 (as of 5/23/14)
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Senior Contributor
StartingOver10
Posts: 3,812
Registered: ‎03-06-2010

Re: reaffirmation agreement and IIb


ezdriver wrote:

Because the debt was reaffirmed and therefore not discharged, it should not report as included in bankruptcy. The creditor will likely stop reporting payments as well. That means the account should be reporting a status just before bankruptcy was filed and and will likely be updated when the balance due is paid in full. That is my opinion.


^^^Actually that is not correct.

 

The account is still included in bankruptcy. The disposition of the account has changed because you have a signed and properly filed reaffirmation agreement, but that does not change the fact that the tradeline was included in bankruptcy.

 

Some creditors will mark the tradeline as "reaffirmed" and begin reporting your payments made subsequent to the BK. Others won't change the reporting of the tradeline at all.

Valued Contributor
ezdriver
Posts: 1,458
Registered: ‎08-24-2013

Re: reaffirmation agreement and IIb

[ Edited ]

StartingOver10 wrote:

ezdriver wrote:

Because the debt was reaffirmed and therefore not discharged, it should not report as included in bankruptcy. The creditor will likely stop reporting payments as well. That means the account should be reporting a status just before bankruptcy was filed and and will likely be updated when the balance due is paid in full. That is my opinion.


^^^Actually that is not correct.

 

The account is still included in bankruptcy. The disposition of the account has changed because you have a signed and properly filed reaffirmation agreement, but that does not change the fact that the tradeline was included in bankruptcy.

 

Some creditors will mark the tradeline as "reaffirmed" and begin reporting your payments made subsequent to the BK. Others won't change the reporting of the tradeline at all.


My bankruptcy attorney told me that reaffirmed accounts do not get reported as included in bankruptcy and that most creditors will not continue reporting on reaffirmed accounts due to their fear of incurring post-discharge injunction violations. My own reaffirmed account does not show up on my credit reports. All the non-reaffirmed accounts are listed on my credit reports. My opinion was based on that information ... but it was an opinion not a fact. YMMV I guess...

 

 



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


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Senior Contributor
StartingOver10
Posts: 3,812
Registered: ‎03-06-2010

Re: reaffirmation agreement and IIb

[ Edited ]

I had reaffirmed one vehicle and surrendered another.

 

For the vehicle I reaffirmed, it is listed on my CR as iib and "reaffirmed" and the payments were reported monthly. The creditor on this is a local credit union (in Tampa).

 

I know that the reporting of the payments is YMMV, but I have never seen a vehicle not reported iib unless it was an error.


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