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Post BK7 Filing Questions

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Post BK7 Filing Questions

Hey all!

After much research on this forum and speaking with an attorney, I made the decision to file for Chapter 7 a few weeks ago. Everything seems to be moving along smoothly and I have have my 341 meeting in a couple weeks. I’ve had a few things come up recently that I haven’t been able to find specific answers for, so I’m hoping someone else may have dealt with similar things. Here’s what I'm wondering:

1) Just recently my mortgage started showing up as closed with a remark saying chapter 7. I wasn’t including this in the bk, as the intention is to reaffirm the loan. I’m not sure if this is just a part of the process, but it freaked me out a little. The same thing happened to some of my student loans that aren’t even able to be included in the bk. Is this normal, or should I be taking some action on this?

2) I have been an authorized user on one of my parents’ credit cards for the last 10+ years. I made sure to verify with my attorney that my bk filing wouldn’t have any negative impact on them or their card (which I don’t believe it has at this point). However, I did notice on one of my CRs that the card has been removed (not closed, removed as if it was never there). Another one of my CRs still shows the account as open, but now says that my “role” is “terminated” vs. being an “authorized user.” This isn’t something that either me or my parents initiated, so I was curious if the credit card company can remove an authorized user from someone’s account without their permission. Again, this could simply be part of the process until my bk is discharged, but I thought that seemed odd. The card is through 5/3, which is one of the companies I burned, so that may be playing a role in this.

3) Lastly, I’m planning out my rebuild (mostly based on the Soulmaster plan) and was curious if there is any downside to applying for an unsecured card with NFCU? I know the secured card is the most likely one I’ll be able to get approved for, but I wasn’t sure if I would get dinged with 2 HPs by trying to get the unsecured first and then falling back to the secured if I’m denied. NFCU was not IIB for me.

I appreciate any help and insight anyone might have! Thanks!
8 REPLIES 8
Community Leader
Super Contributor

Re: Post BK7 Filing Questions


@Shenanigans wrote:
Hey all! HI, and welcome to the forums!!Smiley Happy

After much research on this forum and speaking with an attorney, I made the decision to file for Chapter 7 a few weeks ago. Everything seems to be moving along smoothly and I have have my 341 meeting in a couple weeks. I’ve had a few things come up recently that I haven’t been able to find specific answers for, so I’m hoping someone else may have dealt with similar things. Here’s what I'm wondering:

1) Just recently my mortgage started showing up as closed with a remark saying chapter 7. I wasn’t including this in the bk, as the intention is to reaffirm the loan. I’m not sure if this is just a part of the process, but it freaked me out a little. The same thing happened to some of my student loans that aren’t even able to be included in the bk. Is this normal, or should I be taking some action on this? Yes, this normal, everything will go back to normal as far as reporting once your BK is DC'ed. 

2) I have been an authorized user on one of my parents’ credit cards for the last 10+ years. I made sure to verify with my attorney that my bk filing wouldn’t have any negative impact on them or their card (which I don’t believe it has at this point). However, I did notice on one of my CRs that the card has been removed (not closed, removed as if it was never there). Another one of my CRs still shows the account as open, but now says that my “role” is “terminated” vs. being an “authorized user.” This isn’t something that either me or my parents initiated, so I was curious if the credit card company can remove an authorized user from someone’s account without their permission. Again, this could simply be part of the process until my bk is discharged, but I thought that seemed odd. The card is through 5/3, which is one of the companies I burned, so that may be playing a role in this. You burned 5/3 Bank in your BK? This is probably why, and yes, a company can remove a AU, just like the can add one as well. Hopefully your parents CC is not showing up in their reports as in BK...they need to check it. 

3) Lastly, I’m planning out my rebuild (mostly based on the Soulmaster plan) and was curious if there is any downside to applying for an unsecured card with NFCU? I know the secured card is the most likely one I’ll be able to get approved for, but I wasn’t sure if I would get dinged with 2 HPs by trying to get the unsecured first and then falling back to the secured if I’m denied. NFCU was not IIB for me. The only downside to applying for the unsecured with NFCU is that you wont be approved right away. 1 year post DC is the usual for them to approve. Id start off with the secured route, build some history, and they will probably unsecure a little early.  Can you list out all your lenders your burned, and we can tell you will let you back in, and when...

I appreciate any help and insight anyone might have! Thanks!

 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 2 of 9
Established Member

Re: Post BK7 Filing Questions

Thanks Pizza!  That's reassuring to hear!

 

I'll have them check to see what is showing up on their end regarding their 5/3 card.  I likely should've had them remove me as an AU before filing, buy my attorney assured me it wouldn't be an issue (and I had hoped to keep that card reporting on my CR post bk).  It's strange though, Experian still shows the card as open with me as an AU, Transuntion still shows the card as open but shows my responsibilty as "terminated" instead of as an AU, and Equifax doesn't show the card on my CR at all.  My guess is it's just a timing issue until the card is removed from all of my CRs, but I guess I'll have to wait and see.

 

As far as who I've burned, the list is as follows:

Chase

Barclays

AMEX

BOA

Discover

Fifth Third

 

My loose gameplan after my discharge and verifing all my CRs are updated is to:

1)  Apply for CapitalOne Platinum unsecured card (I've checked the preapproval website and as of now it say's I'm preapproved with a set interest rate for that and the QuickSilverOne card. I'll check again after my dischare before actually applying of course)

2) Apply for NFCU nRewards secured card

3) Garden for the next 6mos-1year and continue paying on my mortgage and student loans as planned

 

Let me know if you have any other suggestions or ideas!

Thanks again!!

Message 3 of 9
Regular Contributor

Re: Post BK7 Filing Questions

@Shenanigans - Great plan. What are your scores as of now? How many accounts did you have reporting late prior to filing? Any collections?

 

Message 4 of 9
Community Leader
Super Contributor

Re: Post BK7 Filing Questions


@Shenanigans wrote:

Thanks Pizza!  That's reassuring to hear!

 

I'll have them check to see what is showing up on their end regarding their 5/3 card.  I likely should've had them remove me as an AU before filing, buy my attorney assured me it wouldn't be an issue (and I had hoped to keep that card reporting on my CR post bk).  It's strange though, Experian still shows the card as open with me as an AU, Transuntion still shows the card as open but shows my responsibilty as "terminated" instead of as an AU, and Equifax doesn't show the card on my CR at all.  My guess is it's just a timing issue until the card is removed from all of my CRs, but I guess I'll have to wait and see.

 

As far as who I've burned, the list is as follows:

Chase -New policy is automatic denial for BK, and no approvals till off reports

 

Barclays -can be 2+ yrs if burned, maybe longer

 

AMEX- current policy is 5 yrs + 1mo post file date to apply again if NOT IIB. If you want them back again sooner than later, you ll need to pay them back in full. Regardless though,  the policy still stands with BK on reports. 

 

BOA- Can be 4+ yrs. A few have been able to get a secured card card later on with them IIB, and unsecured much later. 

 

Discover-since IIB, I would try the prequals  maybe 6 months after DC and if it offers you secured, I would take it, as it does graduate. 

 

Fifth Third-CU's you'll have to pay back in full, and go thru some red tape if you want products again. 

 

My loose gameplan after my discharge and verifing all my CRs are updated is to:

1)  Apply for CapitalOne Platinum unsecured card (I've checked the preapproval website and as of now it say's I'm preapproved with a set interest rate for that and the QuickSilverOne card. I'll check again after my dischare before actually applying of course) Thats great! Id get two cards if they offer them. 

2) Apply for NFCU nRewards secured card this a a good place to start with them! The card does graduate and will open doors later on big time...Smiley Wink

3) Garden for the next 6mos-1year and continue paying on my mortgage and student loans as planned this is a great idea and plan.  You are doing things right, and you will rebuild quickly.  Everything sounds good to me!!  Keep us updated on your progress!Smiley Happy

 

Let me know if you have any other suggestions or ideas!

Thanks again!!


 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 5 of 9
Established Member

Re: Post BK7 Filing Questions

@Justme79 - Thanks!  As of today my Experian FICO 8 score is exactly 600.  I won't have the FICOs for the other two bureaus for a couple more days, but my FAKOs for TU is 592 and Equifax is 563.  They were both showing over 600 until my student loans and mortgage both started showing up as closed, chapter 7 temporarily.

 

I had 10 revolving accounts reporting (one was as an authorized user), as well as 1 mortgage and 3 student loans prior to filing.  Essentially all 9 of my revolving accounts were reporting at about the 90-120 days late timeframe at the time of my filing.  None of my other accounts have any lates.  I was notified that one of my revolving accounts (AMEX) went to collections shortly before filing, but I havent seen anything reflecting that on any of my Credit Reports as of yet.

 

Thanks!

Message 6 of 9
Established Member

Re: Post BK7 Filing Questions

@pizza1 - Thanks so much for all the information!  You rock!!

Message 7 of 9
Established Member

Re: Post BK7 Filing Questions

@Justme79 - Quick update for you!  I was able to pull all 3 of my FICO 8 scores as of this morning.  They are:  EX= 580, EQ = 545, TU = 523.  I'm hoping those will bump up slightly once my mortgage and student loans have been reaffirmed and start reporting again after my discharge.  Hopefully I can get a solid AU added back onto there too, since it looks like the card I was an AU on previously has been removed from all but one of my CRs so far.  Now I get to play the waiting game for the next 2+ months.  Fingers crossed!! Smiley Happy

Message 8 of 9
Regular Contributor

Re: Post BK7 Filing Questions

@Shenanigans - Thanks for the update! I'm sure your score will increase after discharge and the smoke clears.  Better days ahead, keep us posted!

 

Message 9 of 9
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