Non-Filing Spouse's credit CH13

[murph996]

I have filed a CH13 and I checked my wife's credit. While there is no reference to bankruptcy on our combined debts, the debts with her name on them are all showing past due dating to the time of filing. Should the creditors be reporting these items against her credit. One of the many reasons we kept her out of the bankruptcy was to preserve her credit.

Thanks

[justbroke]

I have filed a CH13 and I checked my wife's credit. While there is no reference to bankruptcy on our combined debts, the debts with her name on them are all showing past due dating to the time of filing. Should the creditors be reporting these items against her credit. One of the many reasons we kept her out of the bankruptcy was to preserve her credit.

If they were not past due when you filed, and she continues to pay her debt on time, then the reporting is inaccurate. She should be able to dispute those items that are solely in her name, so long as she has paid on time.

The only way I can see that her credit was affected, is if you have joint accounts, or she was an authorized user. In any case, the authorized user accounts could be removed.

[murph996]

Yes, I am referring to debt that is in both our names. For instance, in Ohio, automobiles need to be paid through the bankruptcy. It is in both our names. It was 30 days past due at the time of filing (lawyer advised that we did not need to make it current prior to filing), now it shows 180+ days past due on my wife's credit report. There are a couple of other accounts that are reporting similarly.

[justbroke]

She should dispute them. If they are inaccurate, they are inaccurate. If you were trying to protect your wife's credit and she is a co-debtor (co-signer) on those loans, you probably should have stayed current! I think that the attorney's advice may have hurt you in that regard.

First things first... dispute the incorrect entries. Based on how the creditors respond to your dispute, you may need to leverage the bankruptcy and the co-debtor stay.

[murph996]

I'm not sure I understand..

Focusing on the car. In Ohio, you must pay any auto loans through bankruptcy. The way that this is being reported, it wouldn't matter if I was current at time of filing or not. It would have gone to 30 days past due 1 month after filing, and so on..It has been showing 120+ days past due since February. had I made October's payment it still would be showing 120+ days past due starting in March. The trustee has been paying them..less than what my monthly payment was, but they have been getting paid through the plan.

That's my question, is the way this is being reported incorrect? I am seeing the same for the other 2 joint accounts being paid through my CH13. This wouldn't have affected how we filed. I was under the apparently false presumption that these wouldn't continue showing past due for her or at least not continue to age.

Both are credit scores were poor prior to filing. There was no reason for her to file along with me.

[justbroke]

The exact way that it is being reported, as 120+ days late, is inaccurate. I would dispute the inaccuracy.

In a Chapter 13, you may need to pay secured debt through the Trustee, and this seems to be your case. I was suggesting that if a payment was due just before filing, that you have made that payment if you were worried about reporting on your (non-filing) spouse's credit. Again, I would just dispute it as inaccurate, and see how it comes back from the creditor. If they mark it as "verified" as correct, then you would need to escalate this with a direct letter to the creditor demanding a change to the spouse's credit while mentioning the co-debtor stay and the inaccuracy of the reporting itself. If it comes to it, you could pay your attorney to have the creditor appear in bankruptcy court under a show cause hearing for a stay violation (co-debtor). However, that depends on whether this is, in fact, a stay violation. (From the outside, it appears to be a stay violation to me.)

As for why it's showing 120+ days late, it seems that the creditor does not know about your bankruptcy. It should show as Included In Bankruptcy (IIB) or "Wage Earner Plan" on your credit report.

[murph996]

Thanks!

We weren't that concerned about the short term impact of her credit report. I just don't want these things showing delinquent indefinitely for her.

Those accounts are showing included in Bankruptcy for me with no balance and all those creditors have filed claims.

Note: Double checked my report and the car wasn't showing 30 days past due until the month I filed bankruptcy. On my report it's a blank. Prior to filing I was 30 days past due a few months prior.

[LadyInTheRed]

If the car was 30 days past due before filing, a notation of a 30 day deliquency on her report is correct. But, there should be no deliquency reported for deliquencies occurring after you filed BK.

You mention other accounts. Are there joint accounts that will be discharged? If so, I hope you realize that after your BK is complete, if you do not pay 100% of the joint debt, the creditors can go after her to pay those debts, including interest that accrues during your BK. Your discharge won't protect her after your BK is closed.

[murph996]

LITR,

I am in a 100% plan.

There are 2 other non-secured debts..a line of credit through Wells Fargo, and a joint Credit Card through our credit union. The credit card is showing charged off on her report the Wells Fargo loan is showing past due 120+ but it was significantly past due at the time of filing.

[LadyInTheRed]

LITR,

I am in a 100% plan.

There are 2 other non-secured debts..a line of credit through Wells Fargo, and a joint Credit Card through our credit union. The credit card is showing charged off on her report the Wells Fargo loan is showing past due 120+ but it was significantly past due at the time of filing.

Is the date of the charge off before or after the date you filed BK? If after, she should dispute it.