How Your Credit Report Should Look After Bankruptcy?

[@Albert-777]

Should high balances after chapter 7,be zeroed out as well?Does it matter even though the original balance is zero?

[@brettrichardson9762]

Is it okay to have all my accounts open and payments current?

[@ED12222]

I’m going to be filing in a couple months. I have 9 cards and 4 with balances. Should I begin to close out the ones I am not currently using?

[@albuquerqueturkey1567]

Hey Matt after a chapter 7 discharge is it ok if the accounts highest balances and history of later charges on a file?

[@bankruptcybailout]

Yes. Those entries remain. Over time, the payment history disappears since it is only tracked for 3 years. Remember, the existence and history of the account don't disappear due to bankruptcy. It simply gets zeroed and closed.

[@midwestworkshop2863]

I had a boa account removed remarks of discharged in bankruptcy and started showing a balance plus not more than 2 payments late. The ch7 bk was discharged in 11/18 and they updated this information 3/24. I filed a dispute and waiting to hear back but my score dropped 40 points after they did there update to remarks. Is there more i ahould do?

[@bankruptcybailout]

It depends on the type of account. Is it a credit card, car loan, other? I would let the credit dispute process play out. If that doesn't fix it, conceivably, you could file a bankruptcy discharge injunction violation against them in bankruptcy court.

[@redciroc1211]

So if I included my car lease in bankruptcy but i reaffirm the payments ,my good payment history will stop?

[@bankruptcybailout]

A lease is not a debt. You are renting the car. If your breach the lease or if you return the car and don't pay any required overage, that becomes a debt. However, a lease in good standing is not a debt.

[@Albert-777]

If it does,just dispute it.That’s what I did after chapter 7 discharge here in California.Creditor was saying it was included in BK,but I was never late and I reaffirmed the auto lease.Was successful in my dispute 👍🏼.

[@redciroc1211]

@Albert-777 thanks yes I'm all good! From going through the process here in Ohio when going through chap 7 and having an auto lease it's not called reaffirming they call it assuming the auto lease ,when my bankruptcy was discharged all my previous and future payment history popped back up on my credit reports ,now im in new auto lease wish I would've kept my 2020 because I had equity but I was thirsty to drive a 2023 smh you live and hopefully you learn lol

[@Albert-777]

@@redciroc1211 lol I hear you 👍🏼

[@HabitualGlow]

Can a creditor report new 30 day late payments on your accounts after the bankruptcy filing date?

[@bankruptcybailout]

Technically, the debt is still active until the bankruptcy is discharged. The creditor is simply prohibited from attempting to collect on the debt while the bankruptcy is pending. Usually, most credit reports get updated soon after the filing date to reflect the debt as closed/included in bankruptcy, and no new payment history (late payment) is recorded. However, it is a bit of grey area whether the creditor must stop reporting payment history before the debt is legally discharged. Chapter 7 bankruptcies stay pending for a little over 3 months.

[@HabitualGlow]

@@bankruptcybailout ok thank you. I was confused about that but I will still dispute those late payments and hopefully get the accounts removed.

[@bankruptcybailout]

Definitely, it is worth disputing.

[@rgdensports]

Is the focus of the video for a Chapter 13 bankruptcy? Would my credit report look different between chapter 7 & 13? What should my credit report look like on a 13 at filing verses after its been discharged? Very confused.

[@bankruptcybailout]

The video is specific to what the report will look like "after the discharge." So, the same information applies to both chapter 7 and chapter 13. You seem to be asking what should the report look like while your chapter 13 is pending. As a practical matter, most accounts will get closed and any payments will not be tracked. Also, payments won't be tracked for debts you are keeping like mortgage or car. In my experience, I haven't seem much difference in reporting on a chapter 13 during the case vs. after discharge. The reason being, most of the debts gets sold once the creditor is notified about the filing of the chapter 13.

[@redciroc1211]

I also have 10 charged off credit cards I was going to dispute with credit bureaus but I was going to wait till my bankruptcy discharged and after the dust settled then I was going to dispute which should I do?

[@bankruptcybailout]

Your credit report is allowed to contain true and accurate information about you. The fact that a debt has been charged off is not a basis for dispute. You should probably wait for the dust to settle from the bankruptcy.

[@kareng148]

I traded my car while on chapter 7 and the new account showed up on my credit report. Will that new car account count towards rebuilding my credit after my bankruptcy is discharged?

[@bankruptcybailout]

I would think so. The loan is a new loan that you got after the "filing date" of your bankruptcy. Strictly speaking, you are not supposed to incur debt while your bankruptcy is pending, but c'est la vie. Good luck in your future endeavors.

[@jermainebrooks6879]

So there's no reason to get a bankruptcy because nothing is going to disappear off your credit report

[@bankruptcybailout]

The accounts get zeroed out and closed and stop being a negative drag on your credit. Also, bankruptcy relieves your legal liability for the debt. I wonder, what do you suppose the alternative is? Just stop paying, hope you don't get sued within the next 4-6 years, let judgments pile up (which have a 10 years lifespan on your credit), risk wage garnishment, and play cat and mouse with creditors for seven years?

[@DaniellaTorres-t3r]

@@bankruptcybailout I agree with him. I went through bankruptcy and was discharged. The credit companies are still reporting negatively a month after my discharge. I built my credit up to 715 just for it to go down 100 pts. I paid my dues but I am getting punished twice as much. I try disputing the charges but all they can say "well reports last on your credit history for 7-10 yrs." Then what is bankruptcy for?

[@staceywilks184]

@@bankruptcybailout My BK 7 was discharged in 2020 and still shows "Payment history is Fair" (due to missed payments just before the BK) so it IS a negative drag on my credit. The only time I've been late on a payment was when my attorney told me to stop paying when I filed. This "Fair" status is not fair. I had a perfect payment history before and after my BK - just not during. Doesn't seem right that I have the "Public Record" of BK AND all those delinquent accounts. What can I do?

[@bankruptcybailout]

@@staceywilks184 Your credit report doesn't grade your payment history. You are looking at a third-party interpretation of your credit, and it is likely meaningless. Also, what have you been paying since your bankruptcy that is being reported? Maybe go to MyFico . com and get your FICO score directly. In other words, don't worry too much about what some app or service is telling you about your credit. By now, you should have 3 credit cards (unsecured), should be charging a small amount each month on each card, and paying them off each month.

[@staceywilks184]

@@bankruptcybailout If the balances get "zeroed out" but the "high balances" don't, what good does that do? The "high balance" is most likely equal to the "balance" when someone files for BK. The reason why I say it's still a negative drag is because the report reveals it - literally says "Payment history is fair" and that's due to the report showing the specific months in which I was late. I'm told neither "high balances" nor the specific late months are allowed on the report after you file. I have 5 credit cards, 1 auto loan, 1 personal loan (and just got approved for a mortgage loan) all easily paid on time and keeping the balance well below 10%. And I spend $40/mth for MyFico reports/scores.....I don't depend on the useless Vantage Score 3 that a lot of services offer.