Credit Report Help???

[LoveMyGirls79]

Alright, here it goes. It may be long...

My husband and I are currently in Ch 13. We are wanting to purchase a new house, and we obtained our credit reports from the mortgage guy. I'm confused as how to read this credit report, but ALOT of the balances of the secured and unsecured balances are reading $0 or paid. So, it looks as not a bunch is on our reports, and the reason I'm concerned about this is because my Husband is stand to receive a large inheritance and we were wanting to dismiss the 13 and pay off these creditors we owe. Now, if everything is true on our report, we can afford to pay off everybody. I want to be done with bankruptcy already!!! Also, if we stay in the bankruptcy, we will probably lose his inheritance AND won't be able to keep all the equity in our house, only 15k (which really stinks but what are you gonna do ). So, if anybody out there knows about credit reports it would really help if you can give me some insight!

Thanks,

Karie

[PI_Lvr]

Karie, I just talked to my lawyer today about selling my house to pay off my BK. One thing he said is that you DO NOT want to discharge your BK before you go to pay it off. It's better to pay everybody 100% through the trustee. I've also had this told to me on this forum. Sorry, but I can't help much on the credit report issue. I just got mine last week and am wondering some of the same things you are.

Good Luck,
John

[JoyH]

Where to look for amount owed creditors

Alright, here it goes. It may be long...

My husband and I are currently in Ch 13. We are wanting to purchase a new house, and we obtained our credit reports from the mortgage guy. I'm confused as how to read this credit report, but ALOT of the balances of the secured and unsecured balances are reading $0 or paid. So, it looks as not a bunch is on our reports, and the reason I'm concerned about this is because my Husband is stand to receive a large inheritance and we were wanting to dismiss the 13 and pay off these creditors we owe. Now, if everything is true on our report, we can afford to pay off everybody. I want to be done with bankruptcy already!!! Also, if we stay in the bankruptcy, we will probably lose his inheritance AND won't be able to keep all the equity in our house, only 15k (which really stinks but what are you gonna do ). So, if anybody out there knows about credit reports it would really help if you can give me some insight!

Thanks,

Karie

Hi Karie,

Unfortunately I don't think it's as simple as looking on your credit report for the amount owed to your creditors because if you're under bankruptcy protection, all of the creditors named in your petition should be showing a $0 balance regardless of the amount you owed them before filing. (if some of them don't show a $0 balance then you'll want to contest the accuracy with the credit reporting agencies and get them to change it to $0--which you are entitled to do under the law) If you have the Plan dismissed (as opposed to paying it off and having it discharged), then the entire balance owed is due and payable and it will eventually be updated and reflected on your credit report.

When you filed for Chapter 13 you should have been given a statement which contains the names of your creditors and the amounts owed to them. That's how you should ascertain the amount owed. If you don't have it, your lawyer should be able to provide you with a copy.

And based on the old CHAPTER 13 laws (I don't know if the 2005 bankruptcy reform changed this info)......

Some states will allow you to pay the Plan (as is--it doesn't go up to 100%) off early with some stipulations (for example in NC, you cannot use estate funds for an early discharge but may use funds given to you or lent to you by family members) but make sure you go through a lawyer to do it because even the states that might have provisions for early discharge don't HAVE to grant it to you and it's always easier to do it when a respected and competent lawyer is doing the asking for you.

Maybe you could borrow money now for an early discharge from a family member and pay it back with the inheritance money you receive after the discharge goes through? I don't know if that's very ethical but just a thought.

Good luck!