credit reporting during bk

[ChuckW]

Hi,

I just want to make sure I understand credit reporting after filing for bankruptcy either chapter. (2003 law)

It is my understanding that credit reporting stops during bk, that is late
entries.

For example at the the time of filing bk, payment is 62 days late on mortgage.
it is ok up to that point to report the 62 days, and reporting stops other than
to indicate item is part of bk and status (discharged).

Is this correct?

I am asking as I filed ch13 in april 03, trustee recieved payments
within the correct time frame, but case was converted to ch7 BEFORE
trustee payed out any monies (nov1). Trustee payed mortgage payments
on 23rd nov and I paid missing amounts when notified in early dec of the amount.

My problem is mortgage co reported late payments through most of bk period,
no re-affirmations made... at 150days. Is this something I can correct?


Thanks

[SinkingFast]

I moved your Thread to this Section, Chuck, as you're likely to get more responses here.

This is a question for the ages, Chuck.

I think, technically, Creditors are supposed to stop reporting delinquencies as of the filing date. BUT we have plenty of people here who their Creditors have continued reporting accts delinquent thru out BK.

Say you filed Ch 7,........... The whole time you're in the Ch 7 process, Creditors are reporting Late until the Official Discharge comes thru.

Or people Dispute their balances after BK as part of the Credit Clean Up process. Creditors will Zero out the balances but add on Lates for the time during the BK.

[lrprn]

I think, technically, Creditors are supposed to stop reporting delinquencies as of the filing date. BUT we have plenty of people here who their Creditors have continued reporting accts delinquent thru out BK.

SF is right. Check out this court case from 2004 where a mortgage company assessed a late fee every month throughout a five year Ch 13 case even though every payment was made by the couple and then the trustee - http://www.tneb.uscourts.gov/opinion...)_03-3154.pdf# and then presented the couple with a hefty late fee bill to pay once their Ch 13 was over.

In this case, in the end it did cost the mortgage company about $2,500 (mostly to pay the couple's lawyer fees because the court found there was no arrearage), but that's small peanuts compared to what a mortgage company can get overall from all of those filers who don't contest their late fees and just pay them. Sad that this has become an acceptable way to make money in this country.

[ChuckW]

Thanks, Get this they refused my payments after the trustee paid what was kept for them, then they tried to get the court to remove the stay.

They wanted the house... When their attorney appeared in court and was
asked why they were pursuing this matter when citi was refusing to accept the payments and had some discussion about sanctions.. poof no problems checks accepted. They waited 6 months after discharge then put incorrect information in my CR...

I know they are not permitted to deliberatly report false information. I have tried to get it cleaned up but CRA's say they have VERIFIED the entries.

It is interesting that during the bk and after I only received "informational" notices if I wanted to pay the loan. They could not render a bill....

I am now fighting directly with the mortgage co.
FYI Chrysler told me they could not report to cra's nor send me a bill if I did not re-affirm.

Never did and only have few months left on car payments... they kept their word no cra reporting or billing!

it all seems like below the belt hits.

Chuck

[lrprn]

it all seems like below the belt hits.

Yep. In the current financial climate in this country, creditors are now operating with sanctions only for the worst offenses (and then only if the debtor can pay a lawyer to file, prove the offense, and then get the sanction imposed by the courts - that can take years and thousands upon thousands of dollars). Most debtors have neither the money or the time to pursue legal action against a company who can throw millions into a legal defense anytime, anywhere. The creditors like your mortgage company and Chrysler take advantage of that fact every day.