topic Re: Dismissed BK in Understanding FICO® Scoring

Dismissed BK

aot2009 — Sat, 21 Apr 2012 02:31:33 GMT

What kind of impact is a Dismissed BK have on a credit report that's 8 years old?

Would removing it increase the credit score?

This person has established other really good credit items on their report and only two other baddies that are 6 years old.

Re: Dismissed BK

AndySoCal — Sat, 21 Apr 2012 03:19:37 GMT

Which bureau(S) hare reporting the BK?

Re: Dismissed BK

aot2009 — Sat, 21 Apr 2012 13:03:20 GMT

EQUIFAX

Re: Dismissed BK

AndySoCal — Sun, 22 Apr 2012 02:35:35 GMT

Have the person call Equifax and ask them how long a dismissed BK stays on your credit report. I believe that time is less than 10 years. I am not sure how much if any it will raise the score with the two collections being more recent.

Re: Dismissed BK

aot2009 — Mon, 23 Apr 2012 01:42:58 GMT

10 years for equifax if dismissed but 7 years if completed chap 13.

7 years for chap 7

I'm asking about the fico impact and he doesn't have new collections just old lates

Re: Dismissed BK

RobertEG — Sun, 22 Apr 2012 21:10:43 GMT

A discharged BK, being a public record, is a bit hard to get removed based on GW. Who do you even contact?

The CRAs would become involved if it was disputed due to some allleged inaccuracy. They cant delete themselves based on any subjective GW criteria.

If accurate, it most likely was reported based on some third party's research of public records, and the reporting party is either unknown, long gone, or would have no real incentive to delete. If reported by a creditor who suffered a loss due to the discharge of the debt, I doubt that GW would be high on their agenda.

The solution, in my opinion, would be revision of the FCRA to provide earlier deletion of a BK based on some showing of sustained, derog-free reporting over a period of time since the BK.

Re: Dismissed BK

01mommy — Sun, 22 Apr 2012 21:19:20 GMT

My chapter 13 fell off completly after 7 years, but was discharged after being paid off in 5yrs. I wasn't tracking my score at that time, but I do know the increase after it aged of was minimal, maybe 10-15pts. I'm sure other factors will come into play...I had gotten 2 collections after bk, so I was probably in a different bucket as it relates to scoring.

Re: Dismissed BK

aot2009 — Mon, 23 Apr 2012 01:41:21 GMT

@RobertEG wrote:
A discharged BK, being a public record, is a bit hard to get removed based on GW. Who do you even contact?
The CRAs would become involved if it was disputed due to some allleged inaccuracy. They cant delete themselves based on any subjective GW criteria.

If accurate, it most likely was reported based on some third party's research of public records, and the reporting party is either unknown, long gone, or would have no real incentive to delete. If reported by a creditor who suffered a loss due to the discharge of the debt, I doubt that GW would be high on their agenda.

The solution, in my opinion, would be revision of the FCRA to provide earlier deletion of a BK based on some showing of sustained, derog-free reporting over a period of time since the BK.

Robert can you be more clear as to what your saying here

"The solution, in my opinion, would be revision of the FCRA to provide earlier deletion of a BK based on some showing of sustained, derog-free reporting over a period of time since the BK. "

Re: Dismissed BK

RobertEG — Mon, 23 Apr 2012 20:12:54 GMT

My thought process.....

The FCRA sets max CR inclusion dates for various types of adverse items. Being max dates, states are free to set earlier dates without contradicting the FCRA.

NY state has, for example, a provision for exclusion of paid collections after 5 years, rather than the FCRA max of 7 years from DOFD+180 days.

Similar efforts relate to paid medical collections. The trend seems to be to take into account consumer performance after the occurence of an adverse item, as well as the type of adverse item, in the provision of CR exclusion dates and/or in the scoring of those major adverse items. Makes sense.

While BKs, depending upon their type, currently have exclusion dates of 7 or 10 years, those exclusion dates are based on the type of discharge, not consumer actions after the discharge. Why not have similar provisions for a BK, adjusting their exclusion dates based on some criteria of consumer activity after the discharge?

Maybe 5 years of absence of new, major derogs? A lot better to do it on the federal level, rather than a hodge-podge of different state variations.