BK7 Discharge, Dispute Derogatory Coding ?

Anonymous · ‎05-03-2015

New to Community, just got BK7 discharge, got CR dump and about to file dispute (s) the three CRA on bad data. Following SoulMaster write up “From BK7 discharge to 700 in 24 months or less!”

Within the topic, he talks about insuring that the correction (s) include the following, (a. Zero Balance, b. Included in Bankruptcy, c. Current (not "default/derogatory" status")

The question I have is related to derogatory coding, such as 30 days late and/or CO listed. In some cases, the CO is listed for several months on the same CL.

By requesting the “Zero Balance, Included in Bankruptcy, and Current” does this clear up these comments, or do they remain as part of the history.

These seem derogatory beyond the BK7 notation.

Should I or can I request removal as part of the dispute process, please advise, Thanks

Filed, BK7 1/21/15, Discharged 4/21/15

Scores 4/21/15 - Experian 591, Transunion 513, Equifax 602

0REDSOX7 · ‎05-04-2015

As long as the TL shows zero balance and IIB, then that is all that is legally required for the lender.

They "appear" as derogatory but, from what several consumer finance attorneys have told me, it is legal for them to be there. Many credit monitoring services will act as if this is severe and impacting your score, but, it shouldn't be. I have this issue with several GECRB (now Synchrony Bank) that reported me 30 days late prior to filing but continued the caedence of 60/90/120/CO after filing and subsequent discharge. I was going to fight it, but the two attorneys I spoke with said it is not in violation of law.

Now, the only caveat here is that if, you were current until filing and then after discharge, they placed a 30 day late somewhere on your report - then you might have a case where a simple dispute would get it deleted.

Of other note - only Experian should be reporting this. Both Equifax and TransUnion will delete all payment history (regardless of good or bad)...

BK Discharge 2/11/14

Currently in the garden.

ezdriver · ‎05-04-2015

If tradelines are reporting IIB and $0 balance then forget the other stuff and focus on adding new tradelines and positive payment history going forward. You will be wasting your time trying to change history of tradelines after a bankruptcy discharge. Try to see the forest from the trees.

jim44 · ‎05-04-2015

@0REDSOX7 wrote:

Of other note - only Experian should be reporting this. Both Equifax and TransUnion will delete all payment history (regardless of good or bad)...

OR - Don't know about Experian but EQ is still showing a missed payment history on a WFHM account. Between that and my HELOC, they were the only two accts that I was late on with I filed. I was thinking of GW WF and asking them to delete the history but.......... I have a little over a year and the whole TL will delete. Was curious as to whether it would be worth it.

Anonymous · ‎05-04-2015

Thanks for the response, I will move forward as suggested,

cem13 · ‎05-07-2015

@Anonymous wrote:

These seem derogatory beyond the BK7 notation.

Should I or can I request removal as part of the dispute process, please advise, Thanks

All tradelines that are IIB will not affect your score 2 years post discharge. It is important to be "IIB" and "$0 balance". After the 2 year discharge, there is a re-bucket and you will see your scores drop 5~10 points, then recover quickly.

The key is to keep a clean history after BK7.

All IIB adds to the AAOA. So if your Average Age of Accounts is 5 years and your IIB is higher; then the IIB HELPS your score because it adds to the AAOA. If your IIB has less age than your AAOA; this should be removed so the AAOA inmproves.

I had a Charge Off that was IIB and I asked TU for an Early Exclusion. TU granted my request and my scores DROPPED by 5 points because it affected my AAOA.

So bottom line, IIB accounts 2 years post discharge; can actually HELP your score based on AAOA.

FICO 08 JUL23: TU 850; EQ 846; EX 843. Clean since BK7 D/C 6/2011.

MarineVietVet · ‎05-08-2015

@cem13 wrote:
@Anonymous wrote:

These seem derogatory beyond the BK7 notation.

Should I or can I request removal as part of the dispute process, please advise, Thanks

All tradelines that are IIB will not affect your score 2 years post discharge. It is important to be "IIB" and "$0 balance". After the 2 year discharge, there is a re-bucket and you will see your scores drop 5~10 points, then recover quickly.

The key is to keep a clean history after BK7.

All IIB adds to the AAOA. So if your Average Age of Accounts is 5 years and your IIB is higher; then the IIB HELPS your score because it adds to the AAOA. If your IIB has less age than your AAOA; this should be removed so the AAOA inmproves.

I had a Charge Off that was IIB and I asked TU for an Early Exclusion. TU granted my request and my scores DROPPED by 5 points because it affected my AAOA.

So bottom line, IIB accounts 2 years post discharge; can actually HELP your score based on AAOA.

What is your source for this?

TRC_WA · ‎05-08-2015

@MarineVietVet wrote:
@cem13 wrote:

All tradelines that are IIB will not affect your score 2 years post discharge.
What is your source for this?

+1

FICO8 current as of : 10-20-25 EQ: 736 TU: 728 EX: 722
Hard INQs last 12 months: EQ: 0 | TU: 0 | EX: 0
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 31% --- AAoA: 6.5 years --- Income: $200k
Last app: 4-6-24

MarineVietVet · ‎05-09-2015

@MarineVietVet wrote:
@cem13 wrote:
@Anonymous wrote:

These seem derogatory beyond the BK7 notation.

Should I or can I request removal as part of the dispute process, please advise, Thanks

All tradelines that are IIB will not affect your score 2 years post discharge. It is important to be "IIB" and "$0 balance". After the 2 year discharge, there is a re-bucket and you will see your scores drop 5~10 points, then recover quickly.

The key is to keep a clean history after BK7.

All IIB adds to the AAOA. So if your Average Age of Accounts is 5 years and your IIB is higher; then the IIB HELPS your score because it adds to the AAOA. If your IIB has less age than your AAOA; this should be removed so the AAOA inmproves.

I had a Charge Off that was IIB and I asked TU for an Early Exclusion. TU granted my request and my scores DROPPED by 5 points because it affected my AAOA.

So bottom line, IIB accounts 2 years post discharge; can actually HELP your score based on AAOA.
What is your source for this?

I'd still like that source if you don't mind.