A question about trade lines after Chapter 7

[lomalindabk]

My Chapter 7 case will be filed next month, about four years too late, meaning I have several closed or charged off accounts from 2010 slated to expire from my three credit reports beginning in Feb. 2015. The oldest derogatory trade line is slate to call of Jan. 2016.

IF discharged, I know these accounts should revert to Zero balance and IIB, but my question is does this in fact reage these negative trade lines? Will they still fall off as stated in my credit reports pre filing? Or does the IIB reference in a sense reage and stay on for years to come?

Thanks in advance. I'm a novice here.

[df04527]

A BK will not re-age an account. The only way to re-age an account is a payment is made of some sort. SOL runs from date of first default on credit reports. Regardless of any other data the accounts that were already defaulted should remain so.

[lomalindabk]

Thanks for the reply.

Maybe I shouldn't have used the term "re-age." I know if I made a payment that starts the SOL again for a creditor suing me and that it can also show up much longer on my CRs. I'm trying to wrap my head around what happens if a negative account reporting on my CRs states that it is due to drop from my report on a certain date, say January 2015, what happens after the debt is discharged and reports IIB? Does that trade line still drop from my report on January 2015? Or does the IIB mean it will report longer.

[TXskyblue]

No, IIB does not mean it will report longer.

[df04527]

Correct....it will drop jan 2015.

[IBroke]

Correct. Filing for BK doesn't extend any drop-off dates. I'm a perfect example: I filed for CH7 less than 4 years ago and as of today, all my derogatory accounts from all three credit-bureaus are gone.

That's the only advantage of filing late: Your credit-report is going to look better much sooner...

BTW, You might even get lucky and see some accounts falling off earlier than expected - especially collection agencies tend to remove their reporting after BK because they know they can no longer squeeze you.

[lomalindabk]

Thanks, IBroke. Yeah, I think the majority of my derogatories will fall off once listed as IIB. Several Junk Debt Buyers still reporting (I'm judgment proof, and they've given up on me long ago) and even with a four-year-old federal tax lien on my reports, my TransUnion score is 670, something I fail to fathom.

Maybe I am one of the few who could see a score bump up after discharge. Strange that my medical debts don't report on either CR. I'm also praying the IRS will remove the lien after the tax debt is discharged (tax years 2003 to 2008). I should have filed in 2008 when I went on disability and early retirement, but another advantage to filing years late is meeting the dischargeability requirements for the IRS debt, which has blossomed to $12,000 with years of interest and penalties. Gracefully, I've been in IRS Not Collectible Status since 2010.