topic Re: Chapter 7 BK and Charge-Offs in Bankruptcy

Chapter 7 BK and Charge-Offs

Anonymous — Wed, 23 Aug 2017 15:29:07 GMT

I had a Chapter 7 BK in early 2015, set to fall off in 2023 (according to my Transunion CR). When I pulled my credit report in 2015 it showed that my KeyBank Student Loan was discharged in my BK. When I pulled a new credit report in 2016 it showed that my Keybank loan was set to be removed from my credit report on 9/2019, but showing as a Charge-Off now.... What can I do about this? I want to apply for a mortgage but dont think it will be easy with it showing as a charge-off. Afraid to call KeyBank and discuss this because I do not want it to reset.

Re: Chapter 7 BK and Charge-Offs

medicgrrl — Wed, 23 Aug 2017 15:37:48 GMT

Chapter 7 typically stays on your report for 10 years from filing date. Hopefully TU will actually remove it early.

Was the student loan included and discharged thru the BK? Most student loans are not included, but there are exceptions the reporting date after the BK? If it was included, dispute it with the credit bureau. Are the other 2 reports showing it as IIB?

Re: Chapter 7 BK and Charge-Offs

Anonymous — Wed, 23 Aug 2017 15:50:41 GMT

I included it in my Chapter 7, not sure if it would really come off. I just double checked my 2015 CR's for Experian and Transunion and they did say included in BK. On the 2016 CR's for both Experian and Transunion, it says Charge-Off. Will disbuting it with the Bureau's affect my credit scores?

Re: Chapter 7 BK and Charge-Offs

medicgrrl — Wed, 23 Aug 2017 16:05:23 GMT

It's hard to say. It depends on how they update it. Was the account charged off prior to the BK? Does it show a balance?

Re: Chapter 7 BK and Charge-Offs

Anonymous — Wed, 23 Aug 2017 16:27:09 GMT

It's hard to say since updates change a coupld/few times during/after ch7. If you hired someone, talk to them and see what they say.

Re: Chapter 7 BK and Charge-Offs

Anonymous — Wed, 23 Aug 2017 20:37:47 GMT

I filed myself.

Re: Chapter 7 BK and Charge-Offs

Anonymous — Wed, 23 Aug 2017 20:38:25 GMT

I honestly don't remember. I believe it was.

Re: Chapter 7 BK and Charge-Offs

Scupra — Wed, 23 Aug 2017 21:41:20 GMT

@Anonymous wrote:
I honestly don't remember. I believe it was.

If the debt was charged off prior to the BK it will continue to report as charged off.. Unfortunately this is the correct way for it to report.

Re: Chapter 7 BK and Charge-Offs

pizza1 — Thu, 24 Aug 2017 02:58:11 GMT

Forgot to say "Welcome" to you! Don't be shy ever about posting, and glad you're here sharing your experience/dilemma with everyone. Welcome to the forums JoannaA!!

Side note...agree with @Scupra

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 12:51:07 GMT

Thank you pizza1.

Do you think I should wait until my charge-off falls off my credit January 2019 to apply for a mortgage? It is a student loan for about $12,000. I am just unsure if it is a deal breaker if it is unpaid.

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 14:08:59 GMT

Do you mind listing what you currently have on your profile? CCs with CLs and balances, other negatives, positives, scores etc.

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 14:27:29 GMT

Where do I go to do this once I am in "My Settings"

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 14:56:08 GMT

Apologies if i wasn't clear. Usually when this is asked, we mean for you to look at your credit report (if you pulled one recently) or pull one so you can see exactly where you stand.

credit check total .com has $1 trial offers which will give you the below info. You just need to make sure to cancel before at 7 days.

Get Your 3 Credit Reports & FICO Scores for $1!

Experian, Transunion, and Equifax Credit Reports & FICO Scores

Re: Chapter 7 BK and Charge-Offs

Scupra — Thu, 24 Aug 2017 16:27:28 GMT

@Anonymous wrote:
Thank you pizza1.

Do you think I should wait until my charge-off falls off my credit January 2019 to apply for a mortgage? It is a student loan for about $12,000. I am just unsure if it is a deal breaker if it is unpaid.

We would need more information about your credit to help guide you in the right direction. Have you spoken to any loan officers yet? Have you purchased a home before, or will this be a first? What other credit cards and loans are on your reports?

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 17:35:05 GMT

I would be a first time homebuyer.

Income: $55,000

Transunion Score: 614 (expected to go up another 50 points once it updates my paid off credit cards)

NEGATIVES ON CREDIT REPORT

Chapter 7 BK Discharged: 2/2014

Capital One Judgement that was discharged (was new, so didn't have any garnishments yet) Falls of 4/2020

A bunch of credit cards that were discharged.

Keybank Student Loan charge-off (falls off 9/2019)

OPEN ACCOUNTS ON CREDIT REPORT - Paying as agreed

Capital One Auto Loan: $10,000 balance 3/2014, expected to be paid off mid 2018 (2 years early)

Nicholas Financial Auto Loan: $10,000 balance

Capital One CC: $0/$500

Credit One CC: $500/$450 (Currently disputing fraudulent charges)

Comenity/VS: $120/$500

Navient Student Loans: $11,500

Not sure what else I can possibly do to bring my credit up. I don't to apply for more credit cards because that would bring more inquiries.

Re: Chapter 7 BK and Charge-Offs

Scupra — Thu, 24 Aug 2017 17:47:52 GMT

@Anonymous wrote:
I would be a first time homebuyer.

Income: $55,000
Transunion Score: 614 (expected to go up another 50 points once it updates my paid off credit cards)

NEGATIVES ON CREDIT REPORT
Chapter 7 BK Discharged: 2/2014
Capital One Judgement that was discharged (was new, so didn't have any garnishments yet) Falls of 4/2020
A bunch of credit cards that were discharged.
Keybank Student Loan charge-off (falls off 9/2019)

OPEN ACCOUNTS ON CREDIT REPORT - Paying as agreed
Capital One Auto Loan: $10,000 balance 3/2014, expected to be paid off mid 2018 (2 years early)
Nicholas Financial Auto Loan: $10,000 balance
Capital One CC: $0/$500
Capital One CC: $0/$500
Credit One CC: $500/$450 (Currently disputing fraudulent charges)
Comenity/VS: $120/$500
Navient Student Loans: $11,500

Not sure what else I can possibly do to bring my credit up. I don't to apply for more credit cards because that would bring more inquiries.

I'm no loan officer but I think your battle is going to be DTI and how much house you can buy. That Credit One balance is killing your scores. Once that is taken care of you should let just one card report utilization less than 10% to see what your scores are when your report is optimized. FHA will be the way to go most likely, if you can get your mid score to 620+ you will be good to go in most cases.

If you are serious about purchasing a home within the near future I would start looking for a LO that has experience with BK's. I found a great LO that was able to use my myFICO reports and do a manual soft approval so I knew where I stood. He was also able to run soft pulls and tell me what changes to my credit would help with the purchase. Start putting money in savings now so you have a down payment AND reserve funds. FHA will want to make sure you aren't going broke just to buy a house Good luck and let us know if you have any questions.

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 17:58:40 GMT

@Anonymous wrote:
I would be a first time homebuyer.

Income: $55,000
Transunion Score: 614 (expected to go up another 50 points once it updates my paid off credit cards)

NEGATIVES ON CREDIT REPORT
Chapter 7 BK Discharged: 2/2014
Capital One Judgement that was discharged (was new, so didn't have any garnishments yet) Falls of 4/2020 maybe good will letter to remove earlier? won't hurt trying.
A bunch of credit cards that were discharged.
Keybank Student Loan charge-off (falls off 9/2019) maybe good will letter to remove earlier? won't hurt trying.

OPEN ACCOUNTS ON CREDIT REPORT - Paying as agreed
Capital One Auto Loan: $10,000 balance 3/2014, expected to be paid off mid 2018 (2 years early) can you pay it off sooner? or a big chunch down?
Nicholas Financial Auto Loan: $10,000 balance can you pay it off sooner? or a big chunch down?
Capital One CC: $0/$500 good
Capital One CC: $0/$500 good
Credit One CC: $500/$450 (Currently disputing fraudulent charges)
Comenity/VS: $120/$500
Navient Student Loans: $11,500

Not sure what else I can possibly do to bring my credit up. I don't to apply for more credit cards because that would bring more inquiries.

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 18:09:08 GMT

Thank you. The Credit One balance $500/$450 JUST happened and didn't report yet. So it has not yet affected my score but I am sure it will soon.

Yes, I will have about $20,000 saved for a downpayment/reserve. My DTI will not be that bad. It would just be my student loan monthly payment of $120, and less then $100 for the credit cards a month. My capital one auto loan will be paid off when it comes time to buy a home. I am hoping the same goes for the Nicholas Financial auto loan that I co-signed on.

May I ask who your LO was?

Re: Chapter 7 BK and Charge-Offs

Anonymous — Thu, 24 Aug 2017 18:10:59 GMT

Yes, my Capital One Auto Loan would be originally paid off 3/2020, however I should have it paid off by June 2018.

Re: Chapter 7 BK and Charge-Offs

Scupra — Thu, 24 Aug 2017 18:14:17 GMT

@Anonymous wrote:
Thank you. The Credit One balance $500/$450 JUST happened and didn't report yet. So it has not yet affected my score but I am sure it will soon.

Yes, I will have about $20,000 saved for a downpayment/reserve. My DTI will not be that bad. It would just be my student loan monthly payment of $120, and less then $100 for the credit cards a month. My capital one auto loan will be paid off when it comes time to buy a home. I am hoping the same goes for the Nicholas Financial auto loan that I co-signed on.

May I ask who your LO was?

That should help you a lot! My LO is only licensed for Arizona so I don't think he will be much help for you I would call around and find one that you like talking to and responds in a timely fashion. You want a LO that is readily available when you need him/her and also someone you feel very comfortable with. It will help ease your nerves