topic Re: 13 BK & DISCHARGE QUESTION in Bankruptcy

13 BK & DISCHARGE QUESTION

rchvmz — Mon, 15 Nov 2021 11:23:27 GMT

When my chapter 13 discharge hits my Credit file, will the Credit Cards that are currently listed as "closed and filed under chpt13 plan" fall off or automatically get removed. What I understand is the term "Bankruptcy" will remain for 10 years, but will report as discharged. My 1st experience with this. Thanks in advance

Re: 13 BK & DISCHARGE QUESTION

MileHigh96 — Mon, 15 Nov 2021 11:37:33 GMT

I'm not sure if a 13 lists accounts the same as a 7, but after my BK7 discharge, all the accounts are still listed and they show a zero balance and a note as IIB (included in bankruptcy). I'm 4 months post discharge and a few of those accounts have just dropped of my report, but the rest are all still there. It will all depend on the original creditor as to whether they drop off or if they stay there the whole time the BK listing does.

Re: 13 BK & DISCHARGE QUESTION

rchvmz — Mon, 15 Nov 2021 13:41:18 GMT

@MileHigh96 wrote:
I'm not sure if a 13 lists accounts the same as a 7, but after my BK7 discharge, all the accounts are still listed and they show a zero balance and a note as IIB (included in bankruptcy). I'm 4 months post discharge and a few of those accounts have just dropped of my report, but the rest are all still there. It will all depend on the original creditor as to whether they drop off or if they stay there the whole time the BK listing does.

I see you are a PENFED member, which I am as well. How long after the dischrge did they allow you a CC?

Re: 13 BK & DISCHARGE QUESTION

MileHigh96 — Mon, 15 Nov 2021 14:40:55 GMT

@rchvmz wrote:
@MileHigh96 wrote:
I'm not sure if a 13 lists accounts the same as a 7, but after my BK7 discharge, all the accounts are still listed and they show a zero balance and a note as IIB (included in bankruptcy). I'm 4 months post discharge and a few of those accounts have just dropped of my report, but the rest are all still there. It will all depend on the original creditor as to whether they drop off or if they stay there the whole time the BK listing does.
I see you are a PENFED member, which I am as well. How long after the dischrge did they allow you a CC?

I applied for and got approved last week, just 4 months after discharge. Still waiting for the physical card to show up in the mail.

Re: 13 BK & DISCHARGE QUESTION

rchvmz — Mon, 15 Nov 2021 15:35:36 GMT

@MileHigh96 wrote:
@rchvmz wrote:
@MileHigh96 wrote:
I'm not sure if a 13 lists accounts the same as a 7, but after my BK7 discharge, all the accounts are still listed and they show a zero balance and a note as IIB (included in bankruptcy). I'm 4 months post discharge and a few of those accounts have just dropped of my report, but the rest are all still there. It will all depend on the original creditor as to whether they drop off or if they stay there the whole time the BK listing does.
I see you are a PENFED member, which I am as well. How long after the dischrge did they allow you a CC?
I applied for and got approved last week, just 4 months after discharge. Still waiting for the physical card to show up in the mail.

What kind of Docs did they ask for, if any. Some want POI etc.....I have a PenFed secured Installment loan along with 7 other cards I got within the last year--when the discharge hits I will have a years worth of good, positive CC history established..And PenFed will be one I will want a card with

Re: 13 BK & DISCHARGE QUESTION

MileHigh96 — Mon, 15 Nov 2021 16:11:37 GMT

@rchvmz wrote:
@MileHigh96 wrote:
@rchvmz wrote:
@MileHigh96 wrote:
I'm not sure if a 13 lists accounts the same as a 7, but after my BK7 discharge, all the accounts are still listed and they show a zero balance and a note as IIB (included in bankruptcy). I'm 4 months post discharge and a few of those accounts have just dropped of my report, but the rest are all still there. It will all depend on the original creditor as to whether they drop off or if they stay there the whole time the BK listing does.
I see you are a PENFED member, which I am as well. How long after the dischrge did they allow you a CC?
I applied for and got approved last week, just 4 months after discharge. Still waiting for the physical card to show up in the mail.
What kind of Docs did they ask for, if any. Some want POI etc.....I have a PenFed secured Installment loan along with 7 other cards I got within the last year--when the discharge hits I will have a years worth of good, positive CC history established..And PenFed will be one I will want a card with

They didn't ask for anything really, just a standard online credit card application, no additional documents. I had opened a savings account with them the month prior just so I could become a member and eventually apply for one of their cards because I heard they were very BK friendly. So just after my discharge passed the 4 month mark, I applied and was instantly approved.

Re: 13 BK & DISCHARGE QUESTION

rchvmz — Mon, 15 Nov 2021 16:33:41 GMT

@MileHigh96 wrote:
@rchvmz wrote:
@MileHigh96 wrote:
@rchvmz wrote:
@MileHigh96 wrote:
I'm not sure if a 13 lists accounts the same as a 7, but after my BK7 discharge, all the accounts are still listed and they show a zero balance and a note as IIB (included in bankruptcy). I'm 4 months post discharge and a few of those accounts have just dropped of my report, but the rest are all still there. It will all depend on the original creditor as to whether they drop off or if they stay there the whole time the BK listing does.
I see you are a PENFED member, which I am as well. How long after the dischrge did they allow you a CC?
I applied for and got approved last week, just 4 months after discharge. Still waiting for the physical card to show up in the mail.
What kind of Docs did they ask for, if any. Some want POI etc.....I have a PenFed secured Installment loan along with 7 other cards I got within the last year--when the discharge hits I will have a years worth of good, positive CC history established..And PenFed will be one I will want a card with
They didn't ask for anything really, just a standard online credit card application, no additional documents. I had opened a savings account with them the month prior just so I could become a member and eventually apply for one of their cards because I heard they were very BK friendly. So just after my discharge passed the 4 month mark, I applied and was instantly approved.

I heard the same...thanks for the DP

Re: 13 BK & DISCHARGE QUESTION

rchvmz — Mon, 15 Nov 2021 16:35:47 GMT

@MileHigh96 wrote:
@rchvmz wrote:
@MileHigh96 wrote:
@rchvmz wrote:
@MileHigh96 wrote:
I'm not sure if a 13 lists accounts the same as a 7, but after my BK7 discharge, all the accounts are still listed and they show a zero balance and a note as IIB (included in bankruptcy). I'm 4 months post discharge and a few of those accounts have just dropped of my report, but the rest are all still there. It will all depend on the original creditor as to whether they drop off or if they stay there the whole time the BK listing does.
I see you are a PENFED member, which I am as well. How long after the dischrge did they allow you a CC?
I applied for and got approved last week, just 4 months after discharge. Still waiting for the physical card to show up in the mail.
What kind of Docs did they ask for, if any. Some want POI etc.....I have a PenFed secured Installment loan along with 7 other cards I got within the last year--when the discharge hits I will have a years worth of good, positive CC history established..And PenFed will be one I will want a card with
They didn't ask for anything really, just a standard online credit card application, no additional documents. I had opened a savings account with them the month prior just so I could become a member and eventually apply for one of their cards because I heard they were very BK friendly. So just after my discharge passed the 4 month mark, I applied and was instantly approved.

I also have the Upgrade card--they approved me for 2 cards--2k and 3k while I was in active BK---I see you have a nice LOC---

Re: 13 BK & DISCHARGE QUESTION

FLLGuy — Mon, 15 Nov 2021 17:55:55 GMT

@rchvmz - BTW on Chapter 13 BK it's 7yrs (unlike Chapter 7 which is 10yrs). Also, you can remove earlier (TU by 6mos, EX by 3mos) and in case you're wondering don't even bother with EQ and let it fall off organically I've read tooo many posts where they masacre your report.

CHAPTER 13 DISCHARGE AND SCORE

rchvmz — Wed, 17 Nov 2021 05:53:19 GMT

When the discharge actually reports on my 3 CR, will there be any score change at all?..........Its worth noting I have 7 revolvers, 1 secured installment, oldest revolver is 14 mos and all perfect pymnt history, higest CL is 3000. Current scores as of today-----EQ 701- EX 655 - TU 650.

What should I expect, score change soon as dischrge reports, or month later, 2 months etc etc........Thanks in advance guys.

Re: CHAPTER 13 DISCHARGE AND SCORE

CH-7-Mission-Accomplished — Wed, 17 Nov 2021 14:33:41 GMT

@rchvmz wrote:
When the discharge actually reports on my 3 CR, will there be any score change at all?..........Its worth noting I have 7 revolvers, 1 secured installment, oldest revolver is 14 mos and all perfect pymnt history, higest CL is 3000. Current scores as of today-----EQ 701- EX 655 - TU 650.
What should I expect, score change soon as dischrge reports, or month later, 2 months etc etc........Thanks in advance guys.

Congrats on your rebuild prior to discharge! I don't know the answer for how your discharge will impact your FICO scores. On my Ch. 7, discharge had no impact. I have a question, though. My brother recently filed a Ch 13 and he was thinking that he can't even open any credit cards to starts rebuilding for five years. How were you able to get all those accounts opened before discharge? Can you share with me who they are with so I can relay the information? Did it require trustee approval?

Re: CHAPTER 13 DISCHARGE AND SCORE

coreyb80 — Wed, 17 Nov 2021 16:52:53 GMT

@CH-7-Mission-Accomplished wrote:
@rchvmz wrote:
When the discharge actually reports on my 3 CR, will there be any score change at all?..........Its worth noting I have 7 revolvers, 1 secured installment, oldest revolver is 14 mos and all perfect pymnt history, higest CL is 3000. Current scores as of today-----EQ 701- EX 655 - TU 650.
What should I expect, score change soon as dischrge reports, or month later, 2 months etc etc........Thanks in advance guys.
Congrats on your rebuild prior to discharge! I don't know the answer for how your discharge will impact your FICO scores. On my Ch. 7, discharge had no impact. I have a question, though. My brother recently filed a Ch 13 and he was thinking that he can't even open any credit cards to starts rebuilding for five years. How were you able to get all those accounts opened before discharge? Can you share with me who they are with so I can relay the information? Did it require trustee approval?

It is always recommended to obtain trustee approval prior to obtaining new credit while in 13 to avoid any possible issues. Personally, I was able to obtain Credit One, Indigo, Milestone, Target, etc during my rebuild in 13. Of course all fee harvesters, but they allowed me to re-establish myself and lead to larger limits that I have now with Penfed & NFCU.

Re: CHAPTER 13 DISCHARGE AND SCORE

jmw1 — Wed, 17 Nov 2021 20:41:53 GMT

@CH-7-Mission-Accomplished wrote:
Congrats on your rebuild prior to discharge! I don't know the answer for how your discharge will impact your FICO scores. On my Ch. 7, discharge had no impact. I have a question, though. My brother recently filed a Ch 13 and he was thinking that he can't even open any credit cards to starts rebuilding for five years. How were you able to get all those accounts opened before discharge? Can you share with me who they are with so I can relay the information? Did it require trustee approval?

I'm not the OP, but here is my experience. First, find out from your lawyer what the rules are. Our trustee allows up to $1k in debt without permission of the trustee and the court. With my liberal interpretation of that, getting a credit card is not the same thing as incurring debt. So get a credit card or three. It's also not my fault that Credit One or whoever raises it to $3k or $4k afterwards. That being said, chapter 13s have a very tight budget especially at the beginning. There is absolutely no room for extra monthly payments. Don't get into the business of borrowing money during the 13 if at all possible. So if you use a credit card for rewards or whatever, pay it off as soon as the transaction posts so you are still living on a cash basis. Don't try to grab every last point of FICO. It's ok to have a sub-optimal FICO due to all balances being zero. But do AZEO if there is a mortgage transaction upcoming in the next 3 months.

Another issue is that most of the non-predatory credit card companies won't lend to someone with a non-discharged 13. A few will open up at the one or two year mark after filing. Credit unions like NFCU will allow a secured card to a CH13 that graduates to unsecured months later. Your brother may be able to get credit cards, but it will be an embarrassing looking wallet with Credit One instead of Capital One. No Chase. No Amex. I hide my Credit One, Ollo, and Mission Lane in the back of my wallet. Put the NFCU and Lowe's card up front. LOL.

Re: CHAPTER 13 DISCHARGE AND SCORE

FLLGuy — Wed, 17 Nov 2021 20:57:49 GMT

@rchvmz wrote:
When the discharge actually reports on my 3 CR, will there be any score change at all?..........Its worth noting I have 7 revolvers, 1 secured installment, oldest revolver is 14 mos and all perfect pymnt history, higest CL is 3000. Current scores as of today-----EQ 701- EX 655 - TU 650.
What should I expect, score change soon as dischrge reports, or month later, 2 months etc etc........Thanks in advance guys.

In my own personal experience, once discharge reported to all 3 reports I only saw a very small bump between (3 - 5pts) nothing to rave about.

Re: CHAPTER 13 DISCHARGE AND SCORE

Lurker22 — Thu, 18 Nov 2021 12:30:32 GMT

@jmw1 wrote:
@CH-7-Mission-Accomplished wrote:
Congrats on your rebuild prior to discharge! I don't know the answer for how your discharge will impact your FICO scores. On my Ch. 7, discharge had no impact. I have a question, though. My brother recently filed a Ch 13 and he was thinking that he can't even open any credit cards to starts rebuilding for five years. How were you able to get all those accounts opened before discharge? Can you share with me who they are with so I can relay the information? Did it require trustee approval?
I'm not the OP, but here is my experience. First, find out from your lawyer what the rules are. Our trustee allows up to $1k in debt without permission of the trustee and the court. With my liberal interpretation of that, getting a credit card is not the same thing as incurring debt. So get a credit card or three. It's also not my fault that Credit One or whoever raises it to $3k or $4k afterwards. That being said, chapter 13s have a very tight budget especially at the beginning. There is absolutely no room for extra monthly payments. Don't get into the business of borrowing money during the 13 if at all possible. So if you use a credit card for rewards or whatever, pay it off as soon as the transaction posts so you are still living on a cash basis. Don't try to grab every last point of FICO. It's ok to have a sub-optimal FICO due to all balances being zero. But do AZEO if there is a mortgage transaction upcoming in the next 3 months.

Another issue is that most of the non-predatory credit card companies won't lend to someone with a non-discharged 13. A few will open up at the one or two year mark after filing. Credit unions like NFCU will allow a secured card to a CH13 that graduates to unsecured months later. Your brother may be able to get credit cards, but it will be an embarrassing looking wallet with Credit One instead of Capital One. No Chase. No Amex. I hide my Credit One, Ollo, and Mission Lane in the back of my wallet. Put the NFCU and Lowe's card up front. LOL.

Great advise, according to my attorney my trustee views any secured card (secured with money obtained after filiing) as not actually being the extension of credit, so I went out and grabbed one of the new US Bank cards (Cash +, going to wait a few months and then grab the US Bank GO card too) - I think every trustee will view things slightly different so yes completely agree, check with your attorney always

Re: CHAPTER 13 DISCHARGE AND SCORE

FLLGuy — Thu, 18 Nov 2021 15:30:02 GMT

@Lurker22 wrote:
Great advise, according to my attorney my trustee views any secured card (secured with money obtained after filiing) as not actually being the extension of credit, so I went out and grabbed one of the new US Bank cards (Cash +, going to wait a few months and then grab the US Bank GO card too) - I think every trustee will view things slightly different so yes completely agree, check with your attorney always

Excellent that you have a laxed attorney and trustee. When you probe your secured card selections consider which cards will graduate? For example: NFCU secured graduate after 6Mos, Discover between 6-18Mos........and so forth. I don't know enough about US Bank if their secured cards graduate.

Re: CHAPTER 13 DISCHARGE AND SCORE

Lurker22 — Fri, 19 Nov 2021 15:40:50 GMT

@FLLGuy wrote:
@Lurker22 wrote:
Great advise, according to my attorney my trustee views any secured card (secured with money obtained after filiing) as not actually being the extension of credit, so I went out and grabbed one of the new US Bank cards (Cash +, going to wait a few months and then grab the US Bank GO card too) - I think every trustee will view things slightly different so yes completely agree, check with your attorney always
Excellent that you have a laxed attorney and trustee. When you probe your secured card selections consider which cards will graduate? For example: NFCU secured graduate after 6Mos, Discover between 6-18Mos........and so forth. I don't know enough about US Bank if their secured cards graduate.

US Bank does graduate but there's no "set" time frame, NFCU won't issue a secured card with an open 13 sadly but US Bank doesn't have that issue

BK DISCHARGE QUESTION HELP

rchvmz — Sun, 12 Dec 2021 19:16:21 GMT

My chapter 13 is fully discharged as of 11/23/2021--------Can I get the CC and other accounts that were included to be deleted, and just have the actual Disharged BK showing, or does all that stay on for the 7 years?........I did speak to a rep @ experian who said I could "dispute" each of the CC that are now no longer active and was in the BK and that could cause them to be deleted. Or will leaving them alone not have any effect on my scores. I have 7 new CC estblished in the last year and all are in perfect standing----no collections either, paid them of and were deleted-----current FICO scores....Eq 718 Ex 671 Tr 653--- I dont know so I would like so real experienced replies here....Thanks, this site is awesome.

Re: BK DISCHARGE QUESTION HELP

CH-7-Mission-Accomplished — Sun, 12 Dec 2021 19:29:49 GMT

@rchvmz wrote:
My chapter 13 is fully discharged as of 11/23/2021--------Can I get the CC and other accounts that were included to be deleted, and just have the actual Disharged BK showing, or does all that stay on for the 7 years?........I did speak to a rep @ experian who said I could "dispute" each of the CC that are now no longer active and was in the BK and that could cause them to be deleted. Or will leaving them alone not have any effect on my scores. I have 7 new CC estblished in the last year and all are in perfect standing----no collections either, paid them of and were deleted-----current FICO scores....Eq 718 Ex 671 Tr 653--- I dont know so I would like so real experienced replies here....Thanks, this site is awesome.

I did a chapter 7 and was able to dispute away all but two accounts that were IIB over the years -- starting immediately upon filing and then getting rid of a few over the following years. You can just dispute them as "I am not responsible for this debt" or something like that since the debt is discharged and you don't owe it. I got rid of two AMEX accounts, Best Buy, Diners Club, one of my two BofA accounts ... and I forget the rest. I had two remaining accounts that would not budge until the 7 year period (well actually up to 6 months prior wth early exclusion) and that was one Chase card and one BofA card. Your reports look much better with all these accounts gone, but the truth is in terms of scoring, as long as there are any charged off IIB cards reporting, you are still taking a hit. You are being scored on the worst you've ever been as showing on your reports. When those last two (out of about 12 that were reporting) finally dropped, my FICO scores increased over 50 points on average on each bureau. I would dispute them all and see how many will go away.

Re: BK DISCHARGE QUESTION HELP

rchvmz — Sun, 12 Dec 2021 19:34:57 GMT

@CH-7-Mission-Accomplished wrote:
@rchvmz wrote:
My chapter 13 is fully discharged as of 11/23/2021--------Can I get the CC and other accounts that were included to be deleted, and just have the actual Disharged BK showing, or does all that stay on for the 7 years?........I did speak to a rep @ experian who said I could "dispute" each of the CC that are now no longer active and was in the BK and that could cause them to be deleted. Or will leaving them alone not have any effect on my scores. I have 7 new CC estblished in the last year and all are in perfect standing----no collections either, paid them of and were deleted-----current FICO scores....Eq 718 Ex 671 Tr 653--- I dont know so I would like so real experienced replies here....Thanks, this site is awesome.
I did a chapter 7 and was able to dispute away all but two accounts that were IIB over the years -- starting immediately upon filing and then getting rid of a few over the following years. You can just dispute them as "I am not responsible for this debt" or something like that since the debt is discharged and you don't owe it. I got rid of two AMEX accounts, Best Buy, Diners Club, one of my two BofA accounts ... and I forget the rest. I had two remaining accounts that would not budge until the 7 year period (well actually up to 6 months prior wth early exclusion) and that was one Chase card and one BofA card. Your reports look much better with all these accounts gone, but the truth is in terms of scoring, as long as there are any charged off IIB cards reporting, you are still taking a hit. You are being scored on the worst you've ever been as showing on your reports. When those last two (out of about 12 that were reporting) finally dropped, my FICO scores increased over 50 points on average on each bureau. I would dispute them all and see how many will go away.

Thanks, appreciate that. I have like 25 CC accounts that need disputed, but I will begine the dispute challenge. Having established some resposible credit history this last year is going to help my scores Im guessing. The discharge has NOT actaully shown up on my file yet, but Im expecting it very soon. I am sure I have to wait for it to be showing "discharged" befor I can begin the dispute challange--yes?