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    #1

    impact on credit scores of car

    Recently I noticed on my credit report that the folks I have my car loan with had not reported my payments on the loan for the last 8 months.

    I had filed bankruptcy under the old laws and in my district was able to keep the car without rep-affirming the debt as long as the payments are current. This is what I elected to do and it is working fine with me.

    Anyway I asked the creditor to please report my payments and was told they would. Now I see they have moved the tradeline from a positive with no activity for 8 months to a negative discharged in bankruptcy.

    On one hand the amount of debt I show has decreased by 27,000.00 and the account is zeroed out. On the other hand I now have a new negative tradeline instead of a positive one.

    The current listing i guess is correct because the debt was discharged and really what the court has allowed is for me to keep the car under a well informal repayment plan.

    I don`t really want to change anything because I can always simply walk away from the car if needed and there is nothing the creditor can do if I am upside down in the vehicle. Doubt that will be the case.

    Anyway anyone know if all of this will hurt or help my credit scores.

    thanks for the help...
    Tags: None
    #2
    The debt was discharged and the creditor must stop reporting payment history.
    Bankruptcy History:
    Chapter 7 filed - 10/12/2005 - Asset
    Discharged - 02/16/2006
    Case Closed - 11/08/2007

    A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

    All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

    Comment

      #3
      Yep, they can't report on a discharged debt..... you no longer owe them unless you want to pay it..... and can walk away if you decide to surrender the auto....

      Auto posting is not going to damage your credit score, total bankruptcy already has.....
      Minny

      "It's amazing the paths that our feet sometimes follow in life".

      My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

      Comment

        #4
        automobile and bankrutpcy

        Thanks for the responses.

        Seems like I did the right thing in trying to get the creditor to report my payments. Instead it now reports included in bankruptcy. Haven`t pulled a credidt report since this all happened, but it seems like this will not hurt anything.

        Guess in a way it may help since 27000 in debt just disappeared and I suspect that may have a positive impact. Hard to imagine one more negative would do much harm.

        Well everything since the discharge is positive and I guess I should be grateful I have the car. It has a 2.9% interest on the loan and lord knows I couldn`t get that now.

        Anyone else have this happen and what did it do to your credit score?


        Thanks,

        Comment

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