Re-building credit post discharge

[saddebbie]

Hello all. I would like to know about post bankruptcy credit re-building. I think that after a discharge, the creditors need to report the balance as 0.00 ? How do I dispute any balance other then 0.00 dollars? Do mortgages balances on houses that I walked away from need to also reflect 0.00 on my credit report? Thanks a bunch.

[BK2008]

Creditors included in BK should be reporting 0IIB. If you surrendered your home in the bankruptcy, ditto.

However, if gave up the house after discharge, you could potentially have a forclosure on your report as well as the BK.

And that is what I know about the whole deal.

[dp1969]

I would definitely dispute any CC balances post BK. There shouldn't be any.

As far as the home, we listed "surrender" in our BK. We have been discharged but the foreclosure hasn't even started yet. I believe it will be listed as a foreclosure in you credit report...at least that's what my lawyer stated. So, either way, if you are walking away it will still be a foreclosure on your report. How would it not?

[BK2008]

I would definitely dispute any CC balances post BK. There shouldn't be any.

As far as the home, we listed "surrender" in our BK. We have been discharged but the foreclosure hasn't even started yet. I believe it will be listed as a foreclosure in you credit report...at least that's what my lawyer stated. So, either way, if you are walking away it will still be a foreclosure on your report. How would it not?

Because if you surrendered it in the BK, they can't report it as a foreclosure. The debt will have been already discharged. Yes they will have to 'foreclose on the house,
and if it appears as such on your credit report, you will need to dispute it.

My 2nd is already reporting 0iib, and I haven't even started the foreclosuree process yet.

[CH33 Paralegal]

You should definitely keep a copy of your discharge letter. That should usualy suffice as the trump card when it comes down to a dispute. If you can get a copy of your claims register to show that the debt was included in the petition, that can help your case as well.

[dp1969]

Because if you surrendered it in the BK, they can't report it as a foreclosure. The debt will have been already discharged. Yes they will have to 'foreclose on the house,
and if it appears as such on your credit report, you will need to dispute it.

My 2nd is already reporting 0iib, and I haven't even started the foreclosuree process yet.

Really?? That is completely opposite of what I was told (by the lawyer). At first, we were not going to surrender but after looking at the 1st & HELOC, it was better decided that we did (payments too high). The lawyer commented that the BK & foreclosure would be on our report. He said either one would knock our credit score but both together wouldn't hit any differently. I haven't pulled our CR since the discharge...suppose I should. What would I be looking for, a zero balance???

[dp1969]

I did find this question on a BK Law firm site:

Expert: Terry Leeders
Date: 4/26/2008
Subject: Surrendering home in Bankruptcy,

Question
Hello. First off, I want to thank you in advance for your answer. You are very helpful and I have learned a lot from your answers to other peoples questions!
We recently converted our Chapter 13 to a Chapter 7 bankruptcy. We are in an ARM mortgage, and our mortgage company refuses to work with us, so after a long and very hard year (this is how long we have been trying to modify our mortgage) we have decided to surrender our home.
Here is my question: when surrendering the home in bankruptcy does it count on your credit report as included in bankruptcy or will it also count as a foreclosure, thus being a double negative on our credit report(s)? I have asked on several message boards but it seems that no one really knows. Thanks so much!

Answer
In my experience, future creditors will see that the bankruptcy discharged the debt thru the case. But, you are correct that the foreclosure will be on your credit report too, as that is the process that the lender takes to transfer title back. You may want to consider a deed in lieu of foreclosure, so that there wouldn't be a foreclosure case # on your credit. A future mortgage lender will see the foreclosure otherwise, even though the bankruptcy trumped it. Each creditor in the future has their own issues with items on credit reports, but clients are able to get mortgages again though.




I feel a conflicting report. Are we talking about "deed in lieu of foreclosure"? In that case, I understand that it doesn't hit your CR as a foreclosure. We did not do that, just walked away but listed "surrender" on the BK filling. We are mailing the keys this week. I just can't see how this would not be on your CR? Sorry if this sounds pessimistic but I would love to be wrong!!

Any moderators want to chime in??

[BK2008]

I hope I am right, but this is what Countrywide told me when I asked them this question.
I also noticed my 2nd is reporting 0IIB.

I guess we will find out soon enought.

[inseriousdebt]

This is all interesting...we converted from a 13 to a 7..and did not reaffirm our mortgage...we walked away from our home in the end right after (mortgages were included in claims summary of bankruptcy), and it is all being reported as IIB. Experian even went ahead and deleted both mortgages from my credit report...?

[dp1969]

This is all interesting...we converted from a 13 to a 7..and did not reaffirm our mortgage...we walked away from our home in the end right after (mortgages were included in claims summary of bankruptcy), and it is all being reported as IIB. Experian even went ahead and deleted both mortgages from my credit report...?

Believe me, I'm hoping that what I've found is wrong!