topic Re: 2 year old Bankruptcy Questions in Rebuilding Your Credit

2 year old Bankruptcy Questions

Anonymous — Sat, 02 May 2020 22:25:17 GMT

After Bankruptcy, I had got my score to a 620ish fico. I got sick and was late on 3 cards.

So, I am yet again fixing.

June my chapter 7 will be 2 years old. When does the bankruptcy start to lose impact? Will I see any increase with aging?

I just opened my jewelers, ox publishing, and secured navy federal.

Paid my fingerhut down to 3% utilization.

Comenity, Indigo, and Tmobile won't do a pay to delete, so I'm hoping to be sold to collections more workable.

I've gained about 30 35 points this month, even with changes not all reporting.

My finances:

Navy fed bal: $8 limit $300

Fingerhut bal: $12 limit $400

Oxpublishing $180 limit 2500, $36 a month

Myjewelers $54 limit 5000

Paid one personal loan off 9 months early, 2 year loan I had been refinancing since 2017.

One loan left has 9 months left of 231 a month.

2 car payments. $650 total.

30k in student loan deferred, still in school

I make about 60k a year, and my household near 100k. But I can't rely on other 40. Sometimes it's there sometimes he doesn't help.

I'm trying to buy a home and was told need to get loans paid off to lower dti. Ideally, id also like pay one the cars off. Both are scheduled to be paid off 2022

My fico 8 is going up but auto and mortgage is not.

I'm at 580, 565, 540 fico 8.

Reaching for minimum 640.

Mortgage would be cheaper than rent. Im paying almost 1000 a month now.

Any tips? Directions? Advice?

Re: 2 year old Bankruptcy Questions

Shooting-For-800 — Sun, 03 May 2020 02:15:21 GMT

Your lates are worse than you BK.

Let me rephrase that.

You BK becomes less impactful every month but you lates will affect you harshly for at least a year.

It is possible to have a 700 Fico score with a 2 year old BK.

I would beg, beg, beg to get those lates removed if possible.

The combo of BK and lates after BK should be devestating.

GL!

Re: 2 year old Bankruptcy Questions

gdale6 — Sun, 03 May 2020 16:17:16 GMT

The BK will affect you all the way to its deletion. At the time mine dropped in 2015 I was at 739 Fico with a clean profile and when it dropped it increased to 803 so many points will be lowered by its presence even at the 10 year mark. Some points are recovered over time but the bulk of them come in how you do your rebuild and maintain your history after the BK. I would do all you can to get those new lates removed with goodwill letters. Good luck

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 10:39:18 GMT

My finances:

Navy fed bal: $8 limit $300

Fingerhut bal: $12 limit $400

Oxpublishing $180 limit 2500, $36 a month

Myjewelers $54 limit 5000

Pay off the $54, $8, and $12 balances. The ideal is to have a balance on only one card. This should be an immediate score boost.

in addition, you mentioned hoping that your lates/COs weren't responding to PFD offers and you hoped for transfer to more amenable collectors. You do not want this. Pay them off whether they will delete or not. If they go to a collector, the OCs do not delete from your reports. You'll have two collection listings for each bad debt, and if you end up with a CA who doesn't delete, you'll be stuck with more derogs on your reports than you currently have..

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 10:53:14 GMT

I honestly, didn't know that was possible. I was under assumption one or other could report, but not both.

Thank you!

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 11:05:40 GMT

Nope, they can both be on your reports. In the case of that, say Indigo sells your account to a CA. They would update their entry to read $0 balance, and the CA would put their tradeline on showing the full balance owed. The OC showing $0 means they no longer are collecting but they definitely do still have the right to remain on your reports. The situation you are thinking of is that it's not permissible for both to be listed and showing a delinquent debt amount being collected. Many can be on the report for a debt, but only one at any time can be showing a non-zero balance and active collection.

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 11:09:36 GMT

I have the money to pay it, but everyone kept telling me make them delete it first.

The Indigo Account was already sold. It updated Saturday to a $0 balance.

Its frustrating, because I took many classes on my bankruptcy. None taught any of the things I've learned in past few weeks.

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 11:15:53 GMT

I agree that trying got a delete is always best but fact is, some just won't do it. They don't care why it went delinquent and they don't care that having it removed would help you. They are within their rights to report and some are just going to, no matter what. When you get to the point where you see that they aren't going to delete, just pay it and get it over with. It'll keep from having another entry showing up. It also stops the account from continually updating as delinquent and suppressing your score.

I should qualify my earlier post - you can have the OC and a CA reporting the same account as long as the OC shows a zero balance. If a collector loses the right to collect, such as selling the debt to a different collector, they must promptly remove themselves from your reports. Only an original creditor can remain on your reports without financial interest in the account.

In regard to the Indigo debt, have you found out who the new agency is yet? If so, or if not but they soon contact you, you can ask to pay in full in exchange for an agreement to not report. Have the money ready and tell them if they'll stay off your reports, you'll pay them right now. Many may do so since that's about the easiest money they'll make.

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 11:21:36 GMT

No clue, honestly.

I caled 2 3 weeks ago and was told call back I was in process of being sold. Due to being sold wouldnt settle, negotiate, delete anything. Referred to call genesis fs card. They weren't of any help.

Saturday, is when myfico updated to say $0 balance.

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 11:25:48 GMT

My reports are really behind, which I assume is due to Coronavirus. Many accounts I've paid balances down still show balance from February. A medical bill i paid for deletion from February is still there.

I'm hoping to be gave a chance to pay and receive a letter in the mail, because my reports are crazy inaccurate.

I had all the names spelled wrong etc removed, they did. Week later they added random phone numbers and names to my report.

Re: 2 year old Bankruptcy Questions

Anonymous — Mon, 04 May 2020 11:45:21 GMT

I'm sure the bureaus have people working remotely like everyone else. I have had two rounds of score updates come through on EX this past week that have yet to reflect on TU and EQ as well. Your reports will catch up likely sooner than later.

Hopefully whoever the CA is that bought the Indigo account will contact you if you can't get ahold of Genesis to find out, so you can make the offer of pay for no reporting. That would definitely be the best outcome.

You can also use goodwill letters to try and have the OC reports removed. OCs rarely honor them but there are stories of success. It's worth the effort to try - even getting lucky on one of them is a help.