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Card reporting IIB when it wasn't. Should I dispute it?

masscredit
Valued Contributor

Card reporting IIB when it wasn't. Should I dispute it?

My old DCU card is being reported as - Petition for Chapter 7 Bankruptcy/Never late. That card wasn't in the list I provided to my attorney. They closed the account after they found that I filed. Should I dispute it or just let it go/it doesn't matter? This was my main bank for years. I recently moved this over to TD but I'd like to keep a good relationship with DCU incase I would like something from them in the future. 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 662 / TU - 636 / EX - 636

SDFCU Secured - $6500 / TD Bank Secured - $5000 / Andrews FCU Secured - $3000 / OpenSky Secured - $3000

Andrews FCU SSL $1500
Message 1 of 17
16 REPLIES 16
FireMedic1
Community Leader
Super Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?

You may not have listed it. Doesnt mean it stays out of the BK. Creditors SP your reports and now that its on there. They know. Your lawyer and/or the trustee pull your reports to make sure everything was included. Also you cant pick and chose who is in your BK. Its all or nothing. Research on here on how DCU is after BK. Especially if they got burned. You didnt say.




Homeowner since Sept 2020. Sharing my experiences after BK from learning here. Rebuild to recovery from the @ 540's.
Message 2 of 17
masscredit
Valued Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@FireMedic1 wrote:

You may not have listed it. Doesnt mean it stays out of the BK. Creditors SP your reports and now that its on there. They know. Your lawyer and/or the trustee pull your reports to make sure everything was included. Also you cant pick and chose who is in your BK. Its all or nothing. Research on here on how DCU is after BK. Especially if they got burned. You didnt say.


I guess I missed an important detail, that card had a zero balance.

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 662 / TU - 636 / EX - 636

SDFCU Secured - $6500 / TD Bank Secured - $5000 / Andrews FCU Secured - $3000 / OpenSky Secured - $3000

Andrews FCU SSL $1500
Message 3 of 17
DaveInAZ
Senior Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@masscredit wrote:

@FireMedic1 wrote:

You may not have listed it. Doesnt mean it stays out of the BK. Creditors SP your reports and now that its on there. They know. Your lawyer and/or the trustee pull your reports to make sure everything was included. Also you cant pick and chose who is in your BK. Its all or nothing. Research on here on how DCU is after BK. Especially if they got burned. You didnt say.


I guess I missed an important detail, that card had a zero balance.


Back in my 2010 BK7 I had a Lowes card with $0 balance, but other Sync cards with a balance. So as soon as they got the BK notice they closed Lowes but were nice enough to mark it "closed by credit granter". And I actually I had one account w/$0 balance survive my BK - PayPal Credit. That was from Commenity back then & I had no other accounts with them. I'd forgotten about it and months after discharge I bought something off eBay and saw the PayPal Credit option & chose it, and it went through. Used it for years, but since Commenity didn't report PayPay Credit it didn't help my rebuild, just useful credit when I had none.

 

You might try calling DCU and ask them to change it "closed by credit granter", but I doubt they will and it's always been very hard to get anyone with a pulse by phone at DCU. And it won't make much of a difference. 

 

And @FireMedic1 - technically if you have a $0 balance you have no debt to that company so it's not included in bankruptcy. But again, it won't make much a difference. Post BK I think it's highly unlikely anyone will approve a credit app just because an account says ""closed by credit granter" instead of "Included in BK". 

Message 4 of 17
masscredit
Valued Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?

@DaveInAZ  Do you think it would matter if I try to obtain credit from DCU in the future? I've been getting auto loans from them for years and find they very good to work with. I know that either way, I'm going to have to wait a few years before they will approve me. 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 662 / TU - 636 / EX - 636

SDFCU Secured - $6500 / TD Bank Secured - $5000 / Andrews FCU Secured - $3000 / OpenSky Secured - $3000

Andrews FCU SSL $1500
Message 5 of 17
DaveInAZ
Senior Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@masscredit wrote:

@DaveInAZ  Do you think it would matter if I try to obtain credit from DCU in the future? I've been getting auto loans from them for years and find they very good to work with. I know that either way, I'm going to have to wait a few years before they will approve me. 


I'm guessing you have DCU branches in your area? Maybe the best approach would stop by a branch and ask to speak with a manager. Explain your situation and that are very concerned that they marked your $0 balance credit card as "included in bankruptcy" when in fact it was not as you had no debt to DCU, and only debt is included in BK. Explain that you are concerned how that might affect your ability to obtain a new car loan with them in the future. If he/she is sympathetic they will know who to contact to correct things. Good luck!

Message 6 of 17
masscredit
Valued Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@DaveInAZ wrote:

I'm guessing you have DCU branches in your area? Maybe the best approach would stop by a branch and ask to speak with a manager. Explain your situation and that are very concerned that they marked your $0 balance credit card as "included in bankruptcy" when in fact it was not as you had no debt to DCU, and only debt is included in BK. Explain that you are concerned how that might affect your ability to obtain a new car loan with them in the future. If he/she is sympathetic they will know who to contact to correct things. Good luck!

That is a very good idea! There are a few branches less than an hour from me. I think I will do that.

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 662 / TU - 636 / EX - 636

SDFCU Secured - $6500 / TD Bank Secured - $5000 / Andrews FCU Secured - $3000 / OpenSky Secured - $3000

Andrews FCU SSL $1500
Message 7 of 17
DaveInAZ
Senior Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?

Two more questions- You don't have any other credit with DCU? No car loan?

And you didn't pay down that DCU card shortly before filing? That's called favoring one creditor over others and not allowed. Trustees look for that.

Message 8 of 17
masscredit
Valued Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@DaveInAZ wrote:

Two more questions- You don't have any other credit with DCU? No car loan?

And you didn't pay down that DCU card shortly before filing? That's called favoring one creditor over others and not allowed. Trustees look for that.


No auto loans at the time and the their card hadn't been used for over a year before I filed. It had a zero balance since 2020.

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 662 / TU - 636 / EX - 636

SDFCU Secured - $6500 / TD Bank Secured - $5000 / Andrews FCU Secured - $3000 / OpenSky Secured - $3000

Andrews FCU SSL $1500
Message 9 of 17
DaveInAZ
Senior Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@masscredit wrote:

@DaveInAZ wrote:

Two more questions- You don't have any other credit with DCU? No car loan?

And you didn't pay down that DCU card shortly before filing? That's called favoring one creditor over others and not allowed. Trustees look for that.


No auto loans at the time and the their card hadn't been used for over a year before I filed. It had a zero balance since 2020.


Great!

Message 10 of 17
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