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Paying credit cards before discharge? Phantom Discharge

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Paying credit cards before discharge? Phantom Discharge

So I recently files for chapter 7 bankruptcy and included my spouses debts as they are community debts, But I filed alone without my spouse. 

 

Before the discharge happens If I pay some minimums on my spouses credit cards( even though this would be throwing money away) would this keep the 4 months of "lates" from showing up on my spouses report? 

 

Are lates between filing and catula discharge able to be fought in court according to the fair credit laws? or only after discharge?

Do the bureaus just wipe all the information away anyways?

Message 1 of 6
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Community Leader
Super Contributor

Re: Paying credit cards before discharge? Phantom Discharge


@jpd36282 wrote:

So I recently files for chapter 7 bankruptcy and included my spouses debts as they are community debts, But I filed alone without my spouse. 

 

Before the discharge happens If I pay some minimums on my spouses credit cards( even though this would be throwing money away) would this keep the 4 months of "lates" from showing up on my spouses report? You have money to pay bills, the trustee will/may/can take that money at any point from filing to180 days post DC. I would not pay anything to any creditor at all. No,  it will not keep the 3-4 months of lates from showing. 

 

Are lates between filing and catula discharge able to be fought in court according to the fair credit laws? or only after discharge? Creditors can only report lates prior to filing (as they are reporting correctly), but may not report anything past your file date on the discharged accout. 

Do the bureaus just wipe all the information away anyways? No. Sometimes you might get lucky and EXP might get rid of the history all together, but I was not lucky, and all 3 CRA still reported all my lates, and did not wipe it away. 




@jpd36282 wrote:

So I recently files for chapter 7 bankruptcy and included my spouses debts as they are community debts, But I filed alone without my spouse. 

 

Before the discharge happens If I pay some minimums on my spouses credit cards( even though this would be throwing money away) would this keep the 4 months of "lates" from showing up on my spouses report? 

 

Are lates between filing and catula discharge able to be fought in court according to the fair credit laws? or only after discharge?

Do the bureaus just wipe all the information away anyways?


Scores held down by umpteen INQ & New accounts
~~~BK7 d/c-08/2013......my rebuild worked for me, but won't necessarily work for you.~~
Message 2 of 6
New Visitor

Re: Paying credit cards before discharge? Phantom Discharge

What ended up happening. I just got my discharge (chap 7 filing alone) and my husbands credit is wrecked because of three months of late payments. I thought they would disappear after bankruptcy, is he screwed? Now what happens?
Message 3 of 6
Regular Contributor

Re: Paying credit cards before discharge? Phantom Discharge

No. Anything that was on your credit report before will stay there until it falls off.

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Chapter 7 Discharge: March 13, 2019

Message 4 of 6
New Member

Re: Paying credit cards before discharge? Phantom Discharge

supposedly per FTC rules you can dispute lates and charges offs reported anytime after filing (that were not reported that way as of the day of filing) but not the ones before filing. Only option I think is disputing them in hopes they remove them, negotiating to pay them( some of what you owe for a good faith for removal of the lates on their part). I would dispute what you can If I were you and then get an FCRA lawyer to fight the rest of the lates really are going to be a major issue for you, or when the time comes that the lates are affecting you trying to get a loan on credit in the future then try to negotiate with the creditor to remove them at that time. 

Message 5 of 6
Regular Contributor

Re: Paying credit cards before discharge? Phantom Discharge

Military Star reported my account as “Collections/ Charge-off” after I filed bankruptcy and refused to re-affirm.
I disputed with TU and EXP and had the account changed from a charge off to “Included in Bankruptcy Chapter 7”.
My Military Star account was only late one time and the only reason I missed the last payment was because it was due just a few days before I filed so it didn’t make sense to pay it.

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Chapter 7 Discharge: March 13, 2019

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