topic Re: And we are off.... in Bankruptcy

And we are off....

NeroStar — Fri, 16 Jun 2023 02:19:55 GMT

Hey guys and gals,

First off, thank you for all the information you have provided thus far. Everyone has been extremely helpful directly and indirectly through stickied topics.

BK7 Discharge complete! 🎉

Just need a little advice going forward. I'll start with the info, and end with questions. I apologize if this gets long winded, just want to provide as much info as possible.

The Nitty Gritty

I popped the 3B score from Experian on Monday for reference pre-discharge.

No Bueno, but it's only a starting point.

TU- 529

EX- 564

EQ- 617 (Doesn't show BK)

AAoA- (shows 6 years 8 months), but everything is closed

2 Hard Inquiries on each report

All 3 reports show 13 closed accounts and none open (2 mortgage, 2 car, 9 revolving)

3 of the 13 are closed delinquent, first delinquency on each being May '18. All other accounts were closed 5-7 years with no lates and paid as agreed.Only 1 of the accounts is actively updating each month as a charge-off (Suncoast FCU), but all DQs show $0 balance and are noted IIB. Collection accounts were removed when I filed BK7.

Today, when I received discharge notice I filled out and prequalified for a Cap1 SavorOne/QS. I then applied and was approved for SavorOne $2K SL. I also went ahead and applied/was approved for the Cred.ai account which is essentially a glorified linked debit card, but supposedly posts a $1500 credit limit to the bureaus.

I'm a NFCU member as of mid May, but have not applied for any credit products yet.

The Questions

1) Should I apply for another credit card/revolving line now to complete the recommended 3 active accounts. I did other prequals today, but only CreditOne approved me. GoldSachs, Discover, and Wells Fargo denied the prequalifier.
2) Im assuming I need an active installment account, and plan to use Navy Fed for an SSL based on recommendations here. When should I apply for this? and Should I contact their bankruptcy department and verify their records show my discharge before applying?
3) I'm now in slightly better shape financially and have the ability to pay off the Suncoast FCU delinquent account that is actively reporting. Should I pay it off and possibly ask for a PFD, or just wait until it falls off in a couple years with the other 2 delinquents that were included in BK7?

Again, thanks for your time and responses. I'm attempting to use the outline of the Guide to 700, but just need a little more individualized assistance. If there's anything else I should be doing, please let me know as well. In all honesty, I just want to get to the gardening stage ASAP so I can continue learning while passively growing.

Re: And we are off....

GZG — Fri, 16 Jun 2023 03:49:39 GMT

@NeroStar wrote:
Only 1 of the accounts is actively updating each month as a charge-off (Suncoast FCU), but all DQs show $0 balance and are noted IIB. Collection accounts were removed when I filed BK7.

Today, when I received discharge notice I filled out and prequalified for a Cap1 SavorOne/QS. I then applied and was approved for SavorOne $2K SL. I also went ahead and applied/was approved for the Cred.ai account which is essentially a glorified linked debit card, but supposedly posts a $1500 credit limit to the bureaus.
I'm a NFCU member as of mid May, but have not applied for any credit products yet.

3) I'm now in slightly better shape financially and have the ability to pay off the Suncoast FCU delinquent account that is actively reporting. Should I pay it off and possibly ask for a PFD, or just wait until it falls off in a couple years with the other 2 delinquents that were included in BK7?

Again, thanks for your time and responses. I'm attempting to use the outline of the Guide to 700, but just need a little more individualized assistance. If there's anything else I should be doing, please let me know as well. In all honesty, I just want to get to the gardening stage ASAP so I can continue learning while passively growing.

was there some reason why Suncoast FCU wasn't included in the bankruptcy?

Re: And we are off....

NeroStar — Fri, 16 Jun 2023 11:41:54 GMT

It is included in the bankruptcy. I just wasn't sure if paying it off would help speed up the rebuild as it is the only account that actively reports the CO delinquency each month.

Re: And we are off....

Lurker22 — Fri, 16 Jun 2023 14:08:39 GMT

paying off something that was discharged in bankruptcy won't change what's being reported on your CR (won't impact your rebuild) so with that said the only reason I'd consider paying back a discharged debt is to get back in with a lender but you have to be sure the $$$ you're giving up is worth what you'll get in return (purely an example - let's say you discharged $10K to AmEx and you want a Delta AmEx, what's the ROI on giving AmEx $10K - will you get enough Delta miles to offset this, in this example I'd argue no - it wouldn't off set it)

Re: And we are off....

md_rebuild — Fri, 16 Jun 2023 14:30:56 GMT

@NeroStar wrote:
Hey guys and gals,

First off, thank you for all the information you have provided thus far. Everyone has been extremely helpful directly and indirectly through stickied topics.
BK7 Discharge complete! 🎉
Just need a little advice going forward. I'll start with the info, and end with questions. I apologize if this gets long winded, just want to provide as much info as possible.

The Nitty Gritty
I popped the 3B score from Experian on Monday for reference pre-discharge.
No Bueno, but it's only a starting point.
TU- 529
EX- 564
EQ- 617 (Doesn't show BK)
AAoA- (shows 6 years 8 months), but everything is closed
2 Hard Inquiries on each report
All 3 reports show 13 closed accounts and none open (2 mortgage, 2 car, 9 revolving)
3 of the 13 are closed delinquent, first delinquency on each being May '18. All other accounts were closed 5-7 years with no lates and paid as agreed.Only 1 of the accounts is actively updating each month as a charge-off (Suncoast FCU), but all DQs show $0 balance and are noted IIB. Collection accounts were removed when I filed BK7.

Today, when I received discharge notice I filled out and prequalified for a Cap1 SavorOne/QS. I then applied and was approved for SavorOne $2K SL. I also went ahead and applied/was approved for the Cred.ai account which is essentially a glorified linked debit card, but supposedly posts a $1500 credit limit to the bureaus.
I'm a NFCU member as of mid May, but have not applied for any credit products yet.

The Questions
1) Should I apply for another credit card/revolving line now to complete the recommended 3 active accounts. I did other prequals today, but only CreditOne approved me. GoldSachs, Discover, and Wells Fargo denied the prequalifier.
2) Im assuming I need an active installment account, and plan to use Navy Fed for an SSL based on recommendations here. When should I apply for this? and Should I contact their bankruptcy department and verify their records show my discharge before applying?
3) I'm now in slightly better shape financially and have the ability to pay off the Suncoast FCU delinquent account that is actively reporting. Should I pay it off and possibly ask for a PFD, or just wait until it falls off in a couple years with the other 2 delinquents that were included in BK7?

Again, thanks for your time and responses. I'm attempting to use the outline of the Guide to 700, but just need a little more individualized assistance. If there's anything else I should be doing, please let me know as well. In all honesty, I just want to get to the gardening stage ASAP so I can continue learning while passively growing.

Speaking from experience, go all in with NFCU. I did the same as you right after discharge, i.e., got a Cap 1 QS (2K CL), but also had moved all of my banking to NFCU so I put $500 down with them for a secured card the day my discharge was reported to all 3 bureaus and then put probably $1-2K in spend on that card each month. I also put spend on Cap 1 (probably $1K a month). At the end of 6 months, NFCU unsecured the card and gave me a $2K CL. In the 4 years since, I've gotten 2 more Cap 1 CC (Savor and Venture) and have a total CL of about $11K between all 3 cards. NFCU, I just had the Cash Rewards card for 3 years (with CLI every 6 months), but in the past 6 months have app'd and gotten a Flagship and their Amex card. Total CL on the C Rewards is $14.5K, the other 2 are $25K each - totaling almost $65K. I have see much better growth with CLI with NFCU than with any other institution, but that's just me. Your situation could be different.

On the SSL, you can just call them to check, or if you have a branch near you go in a talk to a customer service person. I can't recall what report NFCU pulls, but yes, if you don't have an installment loan, then you'll need one.

As to paying off Suncoast, I agree wtih @Lurker22 ...unless you want their business desperately, there's no reason to repay. What's done is done, and just let it fall off fin the normal course of business. The only exception I would put on that is that if they were handling your mortgage or you reaffirmed a car loan with them. Then, it might make sense to repay the amount - depending on the number, just so their bad experience doesn't spill over into other accounts they may handle for you.

Re: And we are off....

NeroStar — Fri, 16 Jun 2023 15:06:55 GMT

@Lurker22

@md_rebuild

Ok, thank you both for the input. I have no need to maintain a relationship with Suncoast so I will let it die off on its own.

Ive heard great things about NFCU from this board and will continue to improve my relationship with them. Would you recommend applying for the secured card and SSL at the same time or space it out. It would be collateralized, but am not sure of their policy regarding multiple requests at once. I will have to call in as the nearest branch is 2 hours north of me in Tampa and with the Lightning or Bucs not in season there's no reason to make that drive randomly.

Thanks again. I'll keep this thread updated as new info is received.
Oh, one other thing... once the discharge and new accounts show on my reports, should I purchase an updated set of scores or just hold off until I actually plan on attaining new lines of credit? Is their an advantage to constantly being updated or does it just fill a void for our obsessive-compulsive desires?

Re: And we are off....

FireMedic1 — Fri, 16 Jun 2023 16:28:16 GMT

@NeroStarIf it was IIB there should be $0 balance and say IIB. CO will stay if it was before filing BK. Violation if it is showing a balance. Should be nothing to pay off. Get that fixed. Isnt helping

Re: And we are off....

NeroStar — Fri, 16 Jun 2023 18:37:42 GMT

@FireMedic1 I apologize. Maybe my wording was a little vague. All of my Delinquencies including Suncoast show $0 IIB.

Suncoast is the only creditor actively updating the CO on the report calendar. The other two creditors stopped reporting a few months following the first CO report. That's why I was wondering if it would be a wiser decision to pay it off for them to stop updating it as I've heard it can drop your score more than an inactive reporting. md_rebuild and Lurker22 already informed me not to do it though as it won't help my score anyway. Thank you!

Re: And we are off....

FireMedic1 — Fri, 16 Jun 2023 18:45:33 GMT

I'd talk to your lawyer. No negative info can be placed on your reports after filing. Which should include updating CO's I believe. Let me ping @despritfreya to get a real law view on this matter.

Re: And we are off....

CH-7-Mission-Accomplished — Fri, 16 Jun 2023 18:49:30 GMT

@md_rebuild wrote:
@NeroStar wrote:
Hey guys and gals,

First off, thank you for all the information you have provided thus far. Everyone has been extremely helpful directly and indirectly through stickied topics.
BK7 Discharge complete! 🎉
Just need a little advice going forward. I'll start with the info, and end with questions. I apologize if this gets long winded, just want to provide as much info as possible.

The Nitty Gritty
I popped the 3B score from Experian on Monday for reference pre-discharge.
No Bueno, but it's only a starting point.
TU- 529
EX- 564
EQ- 617 (Doesn't show BK)
AAoA- (shows 6 years 8 months), but everything is closed
2 Hard Inquiries on each report
All 3 reports show 13 closed accounts and none open (2 mortgage, 2 car, 9 revolving)
3 of the 13 are closed delinquent, first delinquency on each being May '18. All other accounts were closed 5-7 years with no lates and paid as agreed.Only 1 of the accounts is actively updating each month as a charge-off (Suncoast FCU), but all DQs show $0 balance and are noted IIB. Collection accounts were removed when I filed BK7.

Today, when I received discharge notice I filled out and prequalified for a Cap1 SavorOne/QS. I then applied and was approved for SavorOne $2K SL. I also went ahead and applied/was approved for the Cred.ai account which is essentially a glorified linked debit card, but supposedly posts a $1500 credit limit to the bureaus.
I'm a NFCU member as of mid May, but have not applied for any credit products yet.

The Questions
1) Should I apply for another credit card/revolving line now to complete the recommended 3 active accounts. I did other prequals today, but only CreditOne approved me. GoldSachs, Discover, and Wells Fargo denied the prequalifier.
2) Im assuming I need an active installment account, and plan to use Navy Fed for an SSL based on recommendations here. When should I apply for this? and Should I contact their bankruptcy department and verify their records show my discharge before applying?
3) I'm now in slightly better shape financially and have the ability to pay off the Suncoast FCU delinquent account that is actively reporting. Should I pay it off and possibly ask for a PFD, or just wait until it falls off in a couple years with the other 2 delinquents that were included in BK7?

Again, thanks for your time and responses. I'm attempting to use the outline of the Guide to 700, but just need a little more individualized assistance. If there's anything else I should be doing, please let me know as well. In all honesty, I just want to get to the gardening stage ASAP so I can continue learning while passively growing.
Speaking from experience, go all in with NFCU. I did the same as you right after discharge, i.e., got a Cap 1 QS (2K CL), but also had moved all of my banking to NFCU so I put $500 down with them for a secured card the day my discharge was reported to all 3 bureaus and then put probably $1-2K in spend on that card each month. I also put spend on Cap 1 (probably $1K a month). At the end of 6 months, NFCU unsecured the card and gave me a $2K CL. In the 4 years since, I've gotten 2 more Cap 1 CC (Savor and Venture) and have a total CL of about $11K between all 3 cards. NFCU, I just had the Cash Rewards card for 3 years (with CLI every 6 months), but in the past 6 months have app'd and gotten a Flagship and their Amex card. Total CL on the C Rewards is $14.5K, the other 2 are $25K each - totaling almost $65K. I have see much better growth with CLI with NFCU than with any other institution, but that's just me. Your situation could be different.

On the SSL, you can just call them to check, or if you have a branch near you go in a talk to a customer service person. I can't recall what report NFCU pulls, but yes, if you don't have an installment loan, then you'll need one.

As to paying off Suncoast, I agree wtih @Lurker22 ...unless you want their business desperately, there's no reason to repay. What's done is done, and just let it fall off fin the normal course of business. The only exception I would put on that is that if they were handling your mortgage or you reaffirmed a car loan with them. Then, it might make sense to repay the amount - depending on the number, just so their bad experience doesn't spill over into other accounts they may handle for you.

Hey just curious, you show your BK7 Discharge date as 9/24. Did you mean 9/22?

Re: And we are off....

NeroStar — Fri, 16 Jun 2023 18:51:48 GMT

@CH-7-Mission-Accomplished
Discharge happened this week. I'm not sure what you mean by 09/22 v. 09/24

Re: And we are off....

NeroStar — Fri, 16 Jun 2023 18:59:45 GMT

@FireMedic1 Ok. Thanks. For reference, the photos show the date of delinquency I'm referring to, the calendars show the same dates in Red for Suncoast

Re: And we are off....

NeroStar — Fri, 16 Jun 2023 19:05:07 GMT

Nvm @CH-7-Mission-Accomplished , I just realized you were referring to @md_rebuild discharge date on his signature line. Maybe it's a ch13 and hasn't happened yet?

Re: And we are off....

CH-7-Mission-Accomplished — Fri, 16 Jun 2023 19:12:44 GMT

@NeroStar wrote:
Nvm @CH-7-Mission-Accomplished , I just realized you were referring to @md_rebuild discharge date on his signature line. Maybe it's a ch13 and hasn't happened yet?

Apologies. I sometimes get lost in thees threads!

Re: And we are off....

NeroStar — Fri, 16 Jun 2023 19:14:24 GMT

Understandable. I'm already lost in my own thread 😂

Re: And we are off....

despritfreya — Sat, 17 Jun 2023 13:19:45 GMT

@FireMedic1 asked me to look at this thread. . .

I agree that Suncoast should not be updating and you can contact the creditor and warn it that such could be deemed a violation of the Discharge Injunction - and demand it show $0 IIB.

As to going back to the attny to seek an Order of Contempt for violating the Discharge Injunction. . .

If I were the attny I would not take on the representation based upon these facts as currently I see no damages. Damages might be. . . “I was denied credit and had to go with a lender charging more and this was directly because of Suncoast’s improper reporting”.

Further, depending upon the terms of the Fee Agreement, the attny’s representation probably ended when OP obtained his/her Discharge and/or when the case was closed. OP would be hiring the attorney under a new Fee Agreement for a specific task. The cost of doing this probably outweighs any benefit of suing and, if OP "wins" OP may or may not be able to seek payment of legal fees from the defendant.

Des.

Re: And we are off....

NeroStar — Sat, 17 Jun 2023 14:22:40 GMT

@despritfreya Thank you for the input, Des. I'll contact Suncoast today and ask them to modify or remove the charge-off status. The attorney did offer to draw up a demand letter at no cost, then escalate from there if absolutely necessary.
I have no plans for any major loans immediately, and would prefer to just learn from my mistakes and move on. Worst case scenario, the account will fall off in less than 2 years around the same time as the other delinquencies. I'd rather not go through another legal battle anytime soon. Divorce/Bankruptcy has been enough for one lifetime.

Plus, I have you guys to keep me on track in the rebuild or slap me silly if I go astray. 😂

Thank you all so much for everything up until now and beyond. Im going to follow in md_rebuild's footsteps and build up my NFCU relationship. Hopefully, by the time these DQs fall off we can all be sippin Margaritas and Mai-Tais together, paid for with our travel rewards.

Re: And we are off....

NeroStar — Sat, 17 Jun 2023 15:36:16 GMT

I went ahead and tried my luck with the NFCU NSecured card. Prequalification went through fine, but they declined my application.

Kinda stings that I've been approved for unsecured credit, but declined on a secured line. Guess I'll wait to see what the 10 day letter says. Reports show discharge.

Re: And we are off....

CH-7-Mission-Accomplished — Sat, 17 Jun 2023 16:47:20 GMT

@NeroStar wrote:
I went ahead and tried my luck with the NFCU NSecured card. Prequalification went through fine, but they declined my application.
Kinda stings that I've been approved for unsecured credit, but declined on a secured line. Guess I'll wait to see what the 10 day letter says. Reports show discharge.

I would send them a secure message and ask the reason. I have never heard of anyone being declined for the Navy secured CC unless they burned Navy in the past and still owe them money. I don't think they pull credit for this card, so it wouldn't be a locked report. Don't keep us in suspense, message them for the reason and ask what you can do to get it approved.

Re: And we are off....

NeroStar — Sat, 17 Jun 2023 17:15:50 GMT

Awaiting response. Thanks for the message recommendation. Stewing in the denial for 10 days awaiting the letter didn't sound very productive.