Does BK start the clock over?

[jp2861]

I have a collections on my report from 2002. I filed in 2008. Does the IIB status start the clock over for 7 years or does everything get deleted based the first reported date of delinquency? If known, can you point me in the direction of where this is referenced in black and white.

[bkdone]

Under Fair Credit Reporting Act (see website: www.ftc.gov(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than 7 years.

(c) Running of Reporting Period
(1) In general. The 7-year period referred to in paragraphs (4) and (6)
3 of subsection
(a) shall begin, with respect to any delinquent account that is placed for collection(internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately
preceded the collection activity, charge to profit and loss, or similar action.

[krielly]

Be aware however that the BK7 itself may remain on your credit report for up to 10 years on the Public Records section, even though the account you are referencing may drop off beforehand.

[bkdone]

You are right, krielly. I didnt answer the real question asked, huh? Keep an eye on your credit report though. Some creditors will try to tack on the 7 years to the date you filed BK, or add 7 years to the discharge date.

[krielly]

Or add a "date of last major delinquency" as months or a year AFTER you filed. (when I was never even late prior to filing)

I've found a couple of those. Haven't started disputing yet.....

What fun that will be

[skyblue]

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate
the report by more than seven years or until the governing statute of limitations
has expired, whichever is the longer period.[/B]

This raise me a question.
Statute of limitation for bankcruptcy is 10 years.
Supposedly 10 years passed and if you were to asked on credit or any application then can you say 'no'?

I've seen application ask you without ambiguity
"Have you filed bankruptcy previous 7 years?"
Obivously, you can say "no'

But If you were asked
"Have you ever filed bankruptcy?"

Is it illegal to say no?

[Flamingo]

You are right, krielly. I didnt answer the real question asked, huh? Keep an eye on your credit report though. Some creditors will try to tack on the 7 years to the date you filed BK, or add 7 years to the discharge date.

You can bet on that! We are fighting several creditors listing something new within the past year on our credit reports. We filed Chapter 13 in April 2002. During the past year we have noticed a new wording popping up under "Date Major Deliquency was first reported" and we have been fighting hard to get the information off of there. We have been successful with one CRA but the other two keep saying it is being correctly reported. We next will hit the creditors. Our BK is due to start coming off our reports this time next year. Under that Major Deliquency heading are dates being listed in 2005, 2006 and 2007. Figure that one out, even though they are reporting the matter as being in BK! I was told that would allow othem to get beyond the information being taken off our credit reports if we didn't check things out. Sneaky....

[bkdone]

But If you were asked
"Have you ever filed bankruptcy?"

Is it illegal to say no?

That is a good question! In this country it is illegal to lie. If you say "No, I have never filed for BK", then that would be a lie. Just because the BK filing has fallen off of your report doesnt mean that the BK public record is deleted too. Any potential lender, employer, or background check will reveal it now or 50 years from now. The key is to be truthful, say 'Yes', and offer a brief explanation...'I was going thru a difficult time, but that was 14 years ago. I have never filed again.'

I do think that once the 7 or 10 years has passed, and the BK is no longer on your report, you do not have to go into detail as to why you filed, or give specific info as to the circumstances at the time. You've done your time...so to speak. I'd hate to see you lose a potential job or mortgage simply because you said 'No' when you could have said 'Yes' and explained it.

As far as the legality of how to answer that question... I'll have to research that. Good question!!

[skyblue]

That is a good question! In this country it is illegal to lie. If you say "No, I have never filed for BK", then that would be a lie. Just because the BK filing has fallen off of your report doesnt mean that the BK public record is deleted too. Any potential lender, employer, or background check will reveal it now or 50 years from now. The key is to be truthful, say 'Yes', and offer a brief explanation...'I was going thru a difficult time, but that was 14 years ago. I have never filed again.'

I thought after 10 years, BK record fall off from the public record. That's the whole point of statue of limitation.
Law limits on liability for certain period.

So...simple background check would reveal it even after 10 years? I am learning new everyday...

For anyone, BK is not a shameful past but absolutely not the proud past.
Not trying to lie rather if you don't have to reveal the grey past then don't would be the best strategies.

[Flamingo]

I thought after 10 years, BK record fall off from the public record. That's the whole point of statue of limitation.
Law limits on liability for certain period.

So...simple background check would reveal it even after 10 years? I am learning new everyday...

For anyone, BK is not a shameful past but absolutely not the proud past.
Not trying to lie rather if you don't have to reveal the grey past then don't would be the best strategies.

Unfortunately, BK does not fall off the public records. If an employer searches for background information or if anyone else searches for your background information, it remains. Same with marriage/divorce records, criminal records, births, etc., etc. Many people think it comes off after 7 to 10 years but that is just your record reports. I saw the earlier question about if one is asked on an employment application "Have you ever filed bankruptcy?" If you answer no, and they check the records and find out you did, they don't have to interview you. So it's best to be honest. Most employers do complete credit and background checks now anyway.

[jp2861]

Or add a "date of last major delinquency" as months or a year AFTER you filed. (when I was never even late prior to filing)

I've found a couple of those. Haven't started disputing yet.....

What fun that will be

Equifax is using this "Major Delinq" date. According to the rep it's the last delinquency date reported by the lender. It seems it will keep updating every month it's reported. Then when the account ends up in collections it won't be shown as a major on the report. I noticed that the account I referenced did not have "major delinq" date because it's already in collections. The BK will not redate this so it will fall off in 2009.

Every account I listed on my matrix has a date in the "major" section, which is one month beyond my BK filing date. Not really a big deal but the rep did a dispute on the phone. It keeps fresh reports coming in for free anyway.

[CindyLou]

Under Fair Credit Reporting Act (see website: www.ftc.gov(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than 7 years.

(c) Running of Reporting Period
(1) In general. The 7-year period referred to in paragraphs (4) and (6)
3 of subsection
(a) shall begin, with respect to any delinquent account that is placed for collection(internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately
preceded the collection activity, charge to profit and loss, or similar action.

Yep, even though I filed in 05/discharged in '06, many of my accts say "will remain on report until '09"...because I stopped paying everything in '02-'03.
In fact the majority of my accts have a date of first deliquency of 02!

I can't wait to see those suckers start falling off!!!!

[krielly]

If they were reporting a date of delinquency which was prior to my filing (and it was accurate) I would understand.

But to report delinquency dates AFTER my filing (in some cases MONTHS after) is wrong. As I said, I was on time right up until filing, so no reason should exist to report delinquency dates at all, say nothing about months AFTER filing...........