Q about Car Loan on CreditReport

[sunflwrgrl13]

We filed Ch7 in Nov. 2010, and were discharged in March 2011. Right after our discharge, I did some clean up on our Experian CR's, but never got around to the others. We also moved overseas for awhile, so we really didn't care what the Credit Reports said. Now, we are back in the US, and we'd like to work toward purchasing a home again, thus now I am looking at our CRs.

I just pulled my Transunion report, and it shows our car loan with American Honda with a 'derogatory' status. We never missed a payment on this car loan, and we did not reaffirm the loan for the ch7 - we simply kept paying the loan and kept the car. We sold the car last year, after the discharge and before we moved overseas. At that point, the loan was paid in full.

Should we dispute this on our CR? This loan was never delinquent, and the car was not repo'ed. What should the status of this loan show on our CR? I should also mention that the payment history of this loan doesn't even show up. We had the loan from July '08 through June '11, and none of that payment history shows up. I would think this could also make a diff in our credit score.

[anderson238]

by no means an expert, but I think when you do not reffirm and "keep and pay" it is still considered discharged in the BK, so yes even though you paid the loan, the deragatory comments do stay.
If you had reaffirmed, it would have been a ride through and kept current with no deragatory remarks on your credit report.

[LadyInTheRed]

I just pulled my Transunion report, and it shows our car loan with American Honda with a 'derogatory' status.

It sounds like that is what is in the summary of your report. When you go to Honda's actual entry on the report, what does it say and what is the reporting date? If it says included in bankruptcy and the reporting date is your filing date, the entry is correct.

[ksgirl38]

We filed Ch7 in Nov. 2010, and were discharged in March 2011. Right after our discharge, I did some clean up on our Experian CR's, but never got around to the others. We also moved overseas for awhile, so we really didn't care what the Credit Reports said. Now, we are back in the US, and we'd like to work toward purchasing a home again, thus now I am looking at our CRs.

I just pulled my Transunion report, and it shows our car loan with American Honda with a 'derogatory' status. We never missed a payment on this car loan, and we did not reaffirm the loan for the ch7 - we simply kept paying the loan and kept the car. We sold the car last year, after the discharge and before we moved overseas. At that point, the loan was paid in full.

Should we dispute this on our CR? This loan was never delinquent, and the car was not repo'ed. What should the status of this loan show on our CR? I should also mention that the payment history of this loan doesn't even show up. We had the loan from July '08 through June '11, and none of that payment history shows up. I would think this could also make a diff in our credit score.

I was asking about this at my consultation the other day. I'm still trying to determine what to do with my car, but I was told that if you reaffirm the car then it stays on your credit as a positive. If you don't it may not get reported at all. Now I didn't recall either of the attorneys saying it could be negatively reported if you don't reaffirm, but that could be a state thing or something. In Kansas my car is exempt so it may be slightly different there. Can you call your attorney and ask?

[anderson238]

when you stay current and reaffirm, it is like the loan was never in bankruptcy.
I am currently in my 60 days to discharge. I owed $26000 on a car that was worth 22000Just last week, I negotiated with the lender to reduce to current value, they approved it at $21,700.00 and I agreed to reaffirm at this value, reducing my payments by $70.00! same terms/APR.
doesnt help 1st poster, but anyone else who reads, you have have the upper hand as you can choose to walk away and they are stuck at auction with your vehicle worth less than what you are willing to pay for it.

[sunflwrgrl13]

Anderson, that peeves me a bit. One of the reasons we didn't reaffirm was because our attorney advised us not to. He said that reaffirming would open us up to having the terms renegotiated, and we didn't want that. We had a low payment and excellent APR, and had about $6500 in equity in it. He didn't mention that not reaffirming would toss all that payment history out the window like it had never happened.

LadyinRed, the details of the account show the following:
Past Due: $0
High Balance: $xxxxx
Opened: 07/05/2008
Reported: 05/10/2011

We filed ch7 in Nov. 2010, and we were discharged 03/08/2011. It doesn't say anything about being IIB. It just says 'Derogatory'. We sold the car and paid off the loan in June 2011. And as I said, we never missed one payment, even after we filed.

[ksgirl38]

Anderson, that peeves me a bit. One of the reasons we didn't reaffirm was because our attorney advised us not to. He said that reaffirming would open us up to having the terms renegotiated, and we didn't want that. We had a low payment and excellent APR, and had about $6500 in equity in it. He didn't mention that not reaffirming would toss all that payment history out the window like it had never happened.

LadyinRed, the details of the account show the following:
Past Due: $0
High Balance: $xxxxx
Opened: 07/05/2008
Reported: 05/10/2011

We filed ch7 in Nov. 2010, and we were discharged 03/08/2011. It doesn't say anything about being IIB. It just says 'Derogatory'. We sold the car and paid off the loan in June 2011. And as I said, we never missed one payment, even after we filed.

I've been asking the reaffirmation question at all my consultations and I've noticed that the majority have advised me not to. I had the same concern, would they change the terms. I've got 3 more years on a 0% interest loan through Toyota and I didn't want to risk the chance that they would suddenly decide to charge me interest because I filed BK. I was told this isn't possible, but maybe it's different when it's through a bank vs the manufacturer. I don't know. Although this is interesting I don't see much chance of negotiating Toyota down on my loan.

[df04527]

All accounts listed on the bk paperwork will list the account as negative and iib. It has nothing to do with what you did with that particular debt (kept paying).

The fact that this is not showing iib is a good thing as it would possibly drop your score more.