Chapter 13: What classifies as a “burn”?

[Anonymous]

I filed for Chapter 13 in Feb 2018, and  was on a 100% repayment plan. I paid my BK off early and received discharge in December 2020. Again, at 100%, so now i'm in rebuild phase.

Problem is, I paid some of the big ones in BK: Amex, Discover, NFCU auto loan.

My husband and I do all of our banking through Navy Federal and prior to my bankruptcy I had never had a late payment with any creditors (filed due to high debt and a job loss that put me under water very quickly). I'd like to rebuild my relationship with NFCU but Ive seen some posts regarding it being very difficult or impossible if you "burned" them

in BK, and i'm still showing my pink notification at login every day. 

It's been 6+ months since my discharge, i'm authorized signer on my

husbands long standing Chase card and i'm really trying to get my loan mix started?

Anyone have experience here?? Is a 100% repayment treated differently?

[Horseshoez]

@Anonymous, I'm thinking you technically "burned" them for outstanding interest; that said, I'm thinking you've technically "unburned" then for the actual money you owed via your 100% plan.  I get the feeling your combination of an early pay-off 100% plan incombination with NFCU puts you in the company of a very select few, and whether any of those "few" are active here is up for question.  Said another way, you may be blazing a trail for others here to follow.

With the above said, I'm thinking your best bet would be to call Navy Fed and ask what you can do to get fully rehabilitated in their eyes.  Keep us posted.

[Brian_Earl_Spilner]

If you caused a lender a loss, you burned them. In the case of Navy, as long as they get paid back, they'll allow you to have credit products again. You'll need to call in so they can verify and remove that banner. Once it's gone you're good to go 

[Anonymous]

thank you so much for the replies! 

Yes, it was definitely an experience and a lesson, i carried a very high DTI from a young age for a long time, and when you take away the I the D catches up so quickly. My household income didn't qualify me for a 7 and I had no choice but to bust ass and put this behind me as fast as possible. 

Will keep this post updated, because I agree- the posts regarding successful completion of a 13 are few and 100% repayment is fewer.

[jmw1]

100% plan is still a burn because the creditor cannot charge you the rate and fees you promised to pay on the original note. You broke that promise by forcing them to be repaid via chapter 13. If you had failed to complete the chapter 13, you would have found that the added interest and fees will be quite large upon dismissal.

[mrcraft]

I completed a 100% Chapter 13 BK, discharged in July 2018.  

I included Amex in my BK but paid them back 100% through the plan, at least the amount I owed.  Yes, they lost interest during the repayment phase.  At 5 years, 1 month after filing, I was approved for my first Amex card again which was the Cash Magnet.  I had a strong relationship with them since 1997 prior to filing BK.  My starting credit limit was $11,200.  Then, about six months later I applied and was approved for the Hilton Honors card with a starting limit of $9,000.  After my BK fall off my reports this year, I will ask for a 3x CLIs (got an EE with TU, so it's at 780 now).  I also plan to apply for Chase and Citi cards next year which are nearly impossible to get approved with BK on your reports.

I don't think I would have gotten those SCL if I didn't pay them back 100%.

It seems like you're okay at NFCU since you paid them back in full.  As mentioned above, give them a call. 

Unless a creditor pulls your BK file from Pacer, they won't know if it's a 100% plan or not.  Only creditors that you included in the BK would have that information in their internal systems where you may be treated more favorably, like Amex in my case.  So, if you're applying for credit with new creditors, it probably won't make a difference.

[bbeaver2013]

I also burned nfcu in my bk. I have talked to them about rebuilding my credit with them and they informed me that I could voluntarily repay what was owed to them and I would be able to open new credit accounts with them. Hope this info helps and good luck on your rebuild.