collections reporting prior to mortgage

noobafterbk · ‎01-25-2016

So my wife and I are approximately 2.5 months away from applying for our mortgage 2 years post BK7, my reports are all reporting correctly however, my wife has two accounts that are marked as IIB but one was a student loan which the balance was consolidated and transferred to another account and which she is now paying on; and one is a doctors office bill that she doesnt recognize and never paid or saw a bill for?

So my question is, have I left it too late to propertly dispute these two items with Transunion and Equifax, Experian is not reporting either of these items?

I have really struggled to get Equifax to properly dispute and get the typical auto response and update which can drop your fico without them actually correctly updating things.

So what should i do, leave them alone and work with the numbers we have for the mortgage ( she is mid 600's) or try and get the unknown deleted and the transferred loan properly reporting as closed and paid as agreed??

I really dont want to drop her score but would like to have the report correct before we apply - is the score improvement for a correct report worth the risk?

StartingOver10 · ‎01-25-2016

Is this collection for a service by the dr before her Bk or after her Bk filing?

If it was for a service prior to her filing Bk, then the debt has been discharged even if it wasn't listed on the petition. She needs to contact the creditor and provide a copy of her Bk discharge to get this removed. It is not unusual for a collector to try to ignore the Bk - but she has to stop them in their tracks.

However, if this is for a service that was performed after her Bk filing date - then she owes it. Having a derog after a Bk is a very serious matter. She would be better off doing a PFD.

If there was no service performed and the collector is coming after her for payment, then it is fraud. She needs to file a police report to get the item removed from her credit reports. Look at this info for details http://ficoforums.myfico.com/t5/General-Credit-Topics/Victim-of-Identity-Theft-What-To-Do-to-Protect...

You can not have disputes on your credit report when you apply for a mortgage as it masks the scores. The lender will make you remove the disputes anyway so hopefully you can handle the collections item in one of the ways above.

noobafterbk · ‎01-25-2016

both accounts were prior to the BK.

i also noticed that a couple of companies actually reported charge offs on the month of discharge e.g filing BK Jan 2nd 2014, credit report shows 30 days late feb 2014, 60 days march 2014 and charge off April 2014, which is the same month as our discharge. Is that right?

StartingOver10 · ‎01-25-2016

@noobafterbk wrote:
both accounts were prior to the BK.

i also noticed that a couple of companies actually reported charge offs on the month of discharge e.g filing BK Jan 2nd 2014, credit report shows 30 days late feb 2014, 60 days march 2014 and charge off April 2014, which is the same month as our discharge. Is that right?

So the CA is reporting wrong. In fact, if the account did not show up until after you filed Bk (Jan 2, 2014) then the entire collection has to be removed. It is a violation of the discharge injunction. Once you filed Bk, it put an automatic stay on your TL's for the pendancy of the Bk. The only allowed notation (proper notation) is iib and zero balance. iib = included in bankruptcy.

Send a letter to each of the CA's with a copy of your Bk discharge and the applicable dates. Tell them to remove the accounts by X date. If they don't you will sue them. And if they don't - definately go after the CA's. You will get your attorney fees paid by them plus get $$ for the violation of the discharge injunction. It probably won't get that far. When I had a CA try it with me I responded (verbally) at the time of the call and it was removed within 24 hours.

If your Bk attorney won't send the letter to the CA's for you - then find a good consumer attorney to do it.

As to the charge off notation: If the notation was there prior to your filing date, then it stays there. However, if it was charged off after your filing date - it too is a violation of the discharge injunction because the only notation the TL should have is the iib and zero balance.

They can do what they want internally, but once you filed, the automatic stay went on your accounts and stays right up until you are discharged unless a creditor goes in and gets a relief motion filed (not typical except in auto loans).