6 YEARS POST BK CHPT 7

VA6775YR3 · ‎08-21-2020

I am 6 years post BK CHPT 7. I was so discouraged after filing I did not care about credit but new I needed some credit so I got one CC and later an auto loan:

Cap One Opened 10/2014 $2,200 CL, no lates

Cap One Auto Loan 11/2017, no lates

My pre-bk Cap One Auto loan $0 bal, no lates, closed

Student loans-repayment as of 11/2019, no lates $100K

BofA secured Card-closed from 2008 $0 bal no lates 10/01/2009

Comenity Bank/Speigel $0 bal, no lates, closed by credit grantor 11/01/10

Baddies:

First Premier Opened 12/14/14 bal $522 CO-I do not recall opening this account and no payments have ever been made

Convergent/Cox bal $396 coll opened 01/30/18 currently reporting

Aargon Agency bal $953 coll opened 09/30/15 currently reporting

Amerassist bal $390 coll Dental bill opened 04/11/18 currently reporting

Grand Furniture $1503 CO, last payment 08/01/2015, currently reporting

For those over 10 years old, how do I get them off? Any recommendations on expanding credit profile? I have not pulled my scores because CK is 660 and figure the baddies are keeping it down.

I have the cash to pay all baddies but not sure of the direction. From what I read I should PFD the coll but what about the CO's?

DebtStinks · ‎08-22-2020

Yes, PFD (pay for delete) is always your best bet because, depending on how it's reporting, updating to show paid in full or settled can lower your score...this is, for example, if they have NOT been updating monthly and it's been, for example, a few years since any update has been made to the account showing on your credit.

I personally would say any account (charge off, collection, etc) more than 4 years old is likely not to sue you IMO. It does happen every day, and I've seen it happen...just less likely IMO. Keep in mind, a creditor/collector is ONLY going to spend the extra money to file a lawsuit if they think it will give them a good chance of collecting the money.

If the account is 4+ years old (appears most of yours are in this range), I'd start with a PFD settlement offer of around 10% of the ORIGINAL balance when you stopped making payments...not the balance with interest/fees that have accrued until charge off...or worse, some still continue to tack on fees/interest even after charge off. For accounts that are fresh (charge off - 2 year old range) I would start my PFD settlement offer in the 15-20% range.

I would NEVER personally recommend paying more than 40% for a settlement on an account regardless of age and here's my reason why. Most creditors will then "forgive" the remaining amount (let's use the 40% settlement as an example since it's the highest) meaning they send you a 1099 at tax time for the 60% that's been forgiven and now you have to pay tax on it like it's income....yes, you read that correctly. Like it's income.

I'm using round numbers here as an example:

$10,000 charge off credit card

- 4,000 settled amount

$6,000 amount remaining that's "forgiven" and you receive a 1099 for this amount.

Let's say your tax bracket is 25%...now you have a tax liability of an extra $1,500 due to the 60% "forgiven" debt amount brining your actual implied settlement IMO to $5,500 which is 55%...doesn't sound near as good when you factor in all the damage it's done to your credit to only save 45%, right?

Nevertheless, I could ramble all night, but instead I'll leave it at that. As you can tell, I'm very passionate about this, so feel free to comment with any additional questions you might have.

Best of luck and have a great weekend!

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Closed - PenFed $35,000 - Cap1 World Elite MC $11,200
Total CL - $115500

CH7 BK Filed 8/1/17 Discharged 11/7/17

Scores as of 2/18/21:

Inquiries Last 12 Months:

VA6775YR3 · ‎08-24-2020

I appreciate your insight. I sent PFD letters to all of them however, the amounts owed are not that much so I offered:

FIRST PREMIER BAL $522 offered to PIF

Convergent/Cox BAL $390 offered to PIF

Aargon Agency BAL $953 offered $500

Amerassist BAL $396 offered to PIF

Grand Furniture BAL $1,503 offered to PIF

I purchased my scores today and see my utilization is causing the greatest pain in my score so hopefully paying these off and having them removed will also remove the delinquincy and give me a little score bump

ToofDoc · ‎09-06-2020

@VA6775YR3 wrote:
I am 6 years post BK CHPT 7. I was so discouraged after filing I did not care about credit but new I needed some credit so I got one CC and later an auto loan:
Cap One Opened 10/2014 $2,200 CL, no lates
Cap One Auto Loan 11/2017, no lates
My pre-bk Cap One Auto loan $0 bal, no lates, closed
Student loans-repayment as of 11/2019, no lates $100K
BofA secured Card-closed from 2008 $0 bal no lates 10/01/2009
Comenity Bank/Speigel $0 bal, no lates, closed by credit grantor 11/01/10
Baddies:
First Premier Opened 12/14/14 bal $522 CO-I do not recall opening this account and no payments have ever been made
Convergent/Cox bal $396 coll opened 01/30/18 currently reporting
Aargon Agency bal $953 coll opened 09/30/15 currently reporting
Amerassist bal $390 coll Dental bill opened 04/11/18 currently reporting
Grand Furniture $1503 CO, last payment 08/01/2015, currently reporting
For those over 10 years old, how do I get them off? Any recommendations on expanding credit profile? I have not pulled my scores because CK is 660 and figure the baddies are keeping it down.
I have the cash to pay all baddies but not sure of the direction. From what I read I should PFD the coll but what about the CO's?

I am confused, I thought the longer we are from our post BK CH7, the better we should be? You are 6 years post BK CH7 and you're not doing better? I am 1.5 years from my BK CH7 and I only have one (1) derogatory reporting on my credit reports which is my BK CH7. I have over 30+ credit accounts included in my BK Ch7 that were discharged which they all show on my credit reports as "CLOSED" and not "CHARGED OFF".

My understanding is that "CHARGED OFF" accounts shows up in the derogatory list in our credit reports so I'm glad that all of my discharged accounts did not show up in the derogatory list.

Why do you have so many "CHARGED OFF" accounts after your BK Ch7 discharge? Were these "CHARGED OFF" accounts included or incured after your BK CH7 discharge?

VA6775YR3 · ‎09-18-2020

the c/o are post bk. 6 months post bk i lost my job and had to move in with my parents. life really kicks you when you're down, anyway, it took me 2 years to find employment, i went into a depression and ignored my credit. what is helping me is the cap 1 platinum i got immediately after discharge, no lates, well 1 late from 2015 and my car loan no lates. Those small little baddies are killing me.

I will post update on 10/01 with score changes.

pizza1 · ‎09-19-2020

@VA6775YR3 wrote:
the c/o are post bk. 6 months post bk i lost my job and had to move in with my parents. life really kicks you when you're down, anyway, it took me 2 years to find employment, i went into a depression and ignored my credit. what is helping me is the cap 1 platinum i got immediately after discharge, no lates, well 1 late from 2015 and my car loan no lates. Those small little baddies are killing me.

I will post update on 10/01 with score changes.

Anything post BK is reporting correctly. You obtained the CO's and late POST BK. They will stay on your reports for 7 years from the DOFD. You can try sending GW letters for the lates, and if the CO is paid you can try sending GW letter for that as well.