Since there's activity on a bancruptcy for 5 years does it take 12 to get off credit?

[Prodigus]

We haven't even filed yet but I'm just trying to look long term down the road.

Since we'll be paying that entire time on a car, home, cellular phones, and a cpl other debts if the bancruptcy stuff comes off in 7 years (from the filing) then we can look forward to having better credit comig out of this thing than we've ever had..

That would be good since we'll have about 3 years left at the end of the 7 years before DS heads off to college (hopefully)....

Just wondering if anyone knew....

[bkbiker]

Chapter 13 discharged will come off your credit report 7 years after you originally filed.


Take care,
bkbiker

[Prodigus]

Nice!!


Thanks!

[lrprn]

Since we'll be paying that entire time on a car, home, cellular phones, and a cpl other debts if the bancruptcy stuff comes off in 7 years (from the filing) then we can look forward to having better credit comig out of this thing than we've ever had....

Prodigus, are you thinking that your mortgage and car companies are going to be reporting ontime payments during your Ch 13 bankruptcy? Or just that you'll be in good shape to start rebuilding your credit quickly after the bk is over?

[Prodigus]

Well, I was kind of thinking that since niether my mortgage or my car will be in the bancruptcy and that I will be paying them direct that since they will still be active accounts (ok, the mortgage will be but the car will have only been paid off about a year or so) that once the negatives come off after 7 years that they would be about the only things left on there....

Seems that that would give me a half decent credit score even though 7 years is a long time to wait for it....

A friend just finished a different "program" with a credit counseling service.. Although he spent 5 years on that "plan" and although some of his creditors still show something on his report about a debt being paid through the plan his score still jumped to about 720

[aa06a47]

My mortagage companies are not reporting my payments which hacks me off to tell you the truth. They are actually showing the accounts closed, discharged in chapter 13 bankrutpcy. So, in reality, they are not helping my score (I don't think anyway). I have written them, but it has changed nothing.

[lrprn]

Well, I was kind of thinking that since niether my mortgage or my car will be in the bancruptcy and that I will be paying them direct that since they will still be active accounts (ok, the mortgage will be but the car will have only been paid off about a year or so) that once the negatives come off after 7 years that they would be about the only things left on there....

I hate to be the bearer of bad news, but as aa noted, it's very unusual for mortgage and car lenders to report to the credit bureaus during Ch 13, even when you are making the payments on time and directly yourself. Doesn't make it fair, just is the reality. You can do what aa did and request the companies report - maybe you'll be one of the lucky ones.

A friend just finished a different "program" with a credit counseling service.. Although he spent 5 years on that "plan" and although some of his creditors still show something on his report about a debt being paid through the plan his score still jumped to about 720

A credit counseling service payback program works differently with the credit bureaus than bankruptcy. The personal financial risk with a counseling program is much higher - most people find that they don't make headway getting their debts paid down this way because the credit cards and unsecured loan companies pile on late fees and increase APRs (and assuming the counseling company is legit - when they aren't, it's a real nightmare). It's great that your friend's debt management program worked for him/her - unfortunately that is not the typical outcome. Your credit scores will go up quickly after Ch 13 as well - check out the Rebuilding Credit part of the forum for ideas about how to go about making that happen as quickly as possible.

[Prodigus]

wow, yea that's a bad deal..

I would think if you left them out of the bankruptcy and that they had been reporting up until that point that they should still be reporting your payments....

My bank that holds my car loan has always religiously reported my payments for both the car and another loan that I have with them. Unfortunately the remainder of the loan (about $1900 left on it) had to be included in the 13.

It will be interesting to see how they react since the one loan is being put in the 13 and the Car loan is not and will continue to be paid directly.

I mean, if a loan (Such as AA's mortgage) isn't included in a Chpater 13 I question how they can legally say that it's been "discharged" in a Chapter 13 bankruptcy. After all you didn't file for protection against them...

Oh well... I guess only time and patience will tell.. I'll know more by the middle of August I'm sure. I'm sure all the letters to my creditors will be out by then. Then I can just take a pill and sit back and take their calls and nasty letters...

As long as I keep my mortgage and car out of the bancruptcy they can't just foreclose for GP can they?

[aa06a47]

Technically, even though your house payment is being made directly, the debt is still included in the bankruptcy. I believe that is why they show the account closed. I do not know what happens after the bk is discharged, I assume the accounts will start reporting again? Time will tell, I just try and not to think too much about it.