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Repossession before bankruptcy question

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New Visitor

Repossession before bankruptcy question

If your car is repossessed before filing for chapter 7, does that report differently than if it was repossessed after?

 

This is a lease if that matters.

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Frequent Contributor

Re: Repossession before bankruptcy question

@jdizzle1, sorry your post got missed somehow. 

 

Short answer is that anything that happens prior to bankruptcy may continue to report. The only difference is that if your obligation to pay the account was discharged, the status will be changed to "included in bankruptcy" and the balance is reported as $0.

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Valued Contributor

Re: Repossession before bankruptcy question

Of course.  Your BK is your "reset".

Messing up credit after "reset" is much worse than before.

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2020.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

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Valued Contributor

Re: Repossession before bankruptcy question

My lease went as a repo before I filed, I included it in my BK because we still owned on it. The lawyer rejected the lease and now it shows IIB, no late payments either.

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Valued Contributor

Re: Repossession before bankruptcy question

As long as you have no negatives after your BK date, you are not worse off.

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2020.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

5% Rotating - Discover                         5%-20% - Amazon & Lowes                   3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl            4% Dining & Entertain - Savor               3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything - Flagship & Syncrony






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