Charge offs and 13 BK

[Anonymous]

Hello folks. New here but am in need of wisdom. My wife and I are coming out of Chapter 13 in 4 months and are starting the rebuild process.

First and foremost, there is an account showing on my CRs as a chargeoff and still showing missed payments to the tune of 3 years worth. It is a $10k card that was maxed out. I am getting it fixed. My question is, when it is zeroed out and shown to be included, will it have the same effect as if the balance was zeroed out? The reason I ask is when using the simulator it shows a 50 point increases when the whole balance is zeroed out. Is this an accurate portrayal?

Also we obtained trustee approval to get a secured car for $500 from out CU. We plan on keeping 8% on the balance and using the card monthly and paying it off to that 8%.

The simulator is showing that this scenario will boost our score another 40 points. Is this a reasonable expectation?

[dynamicvb]

I can't speak to the lates, but I would not be surprised to see a nice bump if I understood that it was reported late for 3 years. The card should give you a decent bump if you have not done any credit since you started making your trustee payments. I did not do anything while in re-payment and did not use any credit for a year after completion. A card just like you have brought mine up right in line with the simulator for about 43 points. My wife got a 53 point bump in hers across the board.

[RobertEG]

Once you have completed the agreed debt repayment under your Chpt 13, the debt balance will be updated to show $0.

Since it is revolving debt, that will effect your % util scoring, which is the basis for the score increase.

When it is "zeroed out," it will then show a $0 balance, so yes, the effect on your % util scoring will be the same.