Info Needed on Trade Lines Post BK

[SheMis]

I am hoping someone can clarrify the requirements of tradelines post bankruptcy? I understand that you need 3 positive accounts after BK to qualify for a mortgage. However, do they need to be new accounts opened after discharge of BK? Or can they be active accounts that were opened prior to BK as long as they remain in good standing?

[RnJ]

If the open and active accounts were not included in bankruptcy, those accounts should be fine as open and active tradelines.  It shouldn't matter whether they were opened before or after filing/discharge - as long as they are active, in good standing, then they count.  That said, it is your overall credit profile the mortgage lender takes into account.  I.e., average age of accounts, number of accounts in good standing, number of open accounts, mix of credit, etc.  If you're applying for a mortgage, sit down and speak to a loan officer before applying so you can get a feel for what they require. This is called pre-qualification (not to be confused with pre-approval), there is no charge and no credit pull for just talking to a loan officer unless you give them permission to pull your credit.

[SheMis]

Thanks for the info RnJ

[StartingOver10]

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@SheMis wrote:

I am hoping someone can clarrify the requirements of tradelines post bankruptcy? I understand that you need 3 positive accounts after BK to qualify for a mortgage. However, do they need to be new accounts opened after discharge of BK? Or can they be active accounts that were opened prior to BK as long as they remain in good standing?

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Actually, you have to have re-establish your credit after BK.

When you file BK 7, there is no such thing as tradelines remaining open during the BK unless it is an error. You can't exclude creditors from your BK 7 - its an all or nothing deal. All creditors have to be listed in the petition. Besides the creditors subscribe to a service that notifies them when you file so they mark the tradeline as iib anyway.,

I have seen zero balance tradelines closed just before filing that do not show the iib catagory. If you had a tradeline that was paid off prior to filing and closed it too is not marked iib.

If you re-affirm a loan (say a vehicle loan) some lenders will report the payments and others don't report them to your CR.

So the lender will be looking to see that you have new tradelines for at least 12 months after your discharge that are in good standing.

A Ch 13 is different because payments are made to the creditors throughout your bankruptcy.

[RnJ]

While accounts have to be listed in the schedule, how are those "not included" in bankruptcy considered null accounts?  When did it start being all or nothing?  The OP indicated accounts opened before BK and what I assumed to mean the same accounts remaining open and active after BK.  I wasn't aware all open accounts in good standing had to be included in BK if you didn't include them - what am I missing?

[RnJ]

Just checked on this, StartingOver10 is correct, accounts will be listed as included in bankruptcy, unless reaffirmed.  And as stated, the creditor may choose to report or not report on your credit report after discharge.  My apologies to the OP, and it would be best for you to get your questions answered through your attorney so nothing is missed.

[SheMis]

I did re-affirm one account and the others were student loans so they were not included. The one I re-affirmed is paid off and is reporting. The student loans are reporting as positive tradelines with no lates. What I would like to know is if lenders consider them toward the 3 lines of positive credit that are needed to obtain a mortgage or if you need 3 brand new lines of credit after BK.

[StartingOver10]

Both your student loans and the reaffirmed loan count as tradelines for a new mortgage. I am assuming you are paying on the student loans and that they aren't deferred.