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Early Chapter 13 Payoff

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    Early Chapter 13 Payoff

    So, I paid off my Chapter 13 very early (8 months in). I came into some money. I was discharged today.
    My question is, does your credit score see a jump at all? I just checked my FICO numbers for the 3 (600-Experian, 647-TU, 612 Equifax). Or does it stay the same? I had someone add me as an authorized user two months ago and I saw a huge increase once that happened.

    #2
    Also, since I paid at 100%, can I request that my report says paid in full, or does that automatically happen? Anything else I can do?

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      #3
      Originally posted by RU5781 View Post
      Also, since I paid at 100%, can I request that my report says paid in full, or does that automatically happen? Anything else I can do?
      What do you want to report as 100% paid? If you filed bankruptcy all your pre-filing creditors will report as Included in Bankruptcy (IIB). They will (should) reset the balance to $0 and mark the account as closed.

      Once you wait a few weeks, the discharge and close should be reported to the credit bureaus and you may see a tiny jump. The key will likely be hinged upon the status of your existing accounts and how they are reporting. Dispute, dispute and dispute as necessary.

      Time is the best healer. In about 6-months you could be in the high 600s.
      Don't apply for credit. Don't let any new account report over 8% utilization. Obtain a good installment loan (small one) and pay it immediately below 9% and just let it sit. I think shipo created a pretty good guide on this.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      I am not an attorney. Any advice provided is not legal advice.

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        #4
        Originally posted by RU5781 View Post
        Also, since I paid at 100%, can I request that my report says paid in full, or does that automatically happen? Anything else I can do?
        IIB with a zero balance is as good as it gets. It's the exact same result as someone who got discharged with a 0% or 1% plan instead of repaying 100%. You didn't pay according to the original terms on your note. In fact, you didn't pay the original interest rate on the note. The interest rate your creditors had to accept was either very low or zero. When you filed chapter 13 bankruptcy, you imposed the repayment terms involuntarily on your creditors and made them jump through hoops to file a proof of claim. So I think you're asking for a lot. Once you file bankruptcy, the damage to your credit report is done no matter what you do afterwards including paying 100%.

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