Ch. 13 Car Loan Listed as Past Due!

[BK_Broiler]

In an effort to clean up my credit report, I reported an issue with my car loan, which is included in my chapter 13 plan, and is currently listed as "$2000 past due" on my account. $2000 is what I owe on the loan. I don't know why it is listed as past due, as it is included in my plan and I am making my payments. The credit bureau refused to change the item after their investigation. I am confused and upset. Does this seem right? Has anyone else had a similar listing on their credit report? Showing a past due amount is making my FICO even worse!! :-(

[MajorMike]

Why are you worried about your credit report while in BK???? Leave it be until the end and then correct it. It's not going to do you any good right now anyway. Once it is paid off, it will reflect correctly.

[qwertysue]

MM--I believe BKB is 38 months into paying (old law) and was considering early payoff, which @ 38 months is eligible to do. If that is their plan, then it IS appropriate to start clean up of the credit reports.

Before the ???? are posted, some quick reading of their other posts might be in order.

BK--congrats on making it this far!

[Flamingo]

Contact the creditor of your vehicle via certified mail (obtain the address, either via phone or online, where to send credit correspondence or BK correspondence). Enclose a copy of the credit report showing the account and the past due listing and enclose a copy of recent Trustee statement as to what has been paid on that amount (call your attorney and get one - they can print one out showing what has been paid to date on any creditor in your Plan). Highlight it in yellow (you can black out other creditors that may be listed). In your letter advise them that the vehicle is being paid through your 13, there are no late payments and what is being reported is incorrect and you would like the information corrected. Copy the credit reporting agency.

If you had late payments prior to your BK filing on the vehicle, that information they will not remove.

[MajorMike]

MM--I believe BKB is 38 months into paying (old law) and was considering early payoff, which @ 38 months is eligible to do. If that is their plan, then it IS appropriate to start clean up of the credit reports.

Before the ???? are posted, some quick reading of their other posts might be in order.

BK--congrats on making it this far!

Sue, I don't have the time to go back to old posts most of the time. It would be helpful if the OP could state this in the post at hand.

[BK_Broiler]

qwertysue, flamingo, thanks for your advice. I will pursue this by sending the creditor a copy of the trustee statement. Regardless of the fact that I still have 2 years on my Chapter 13, it is very important to me that I keep my credit scores as high as possible. I don't know why MM says that improving credit won't do any good while in bankruptcy. My experience has shown that it makes a great deal of difference.

[Flamingo]

qwertysue, flamingo, thanks for your advice. I will pursue this by sending the creditor a copy of the trustee statement. Regardless of the fact that I still have 2 years on my Chapter 13, it is very important to me that I keep my credit scores as high as possible. I don't know why MM says that improving credit won't do any good while in bankruptcy. My experience has shown that it makes a great deal of difference.

It really doesn't matter to much what's on your credit reports during your bankruptcy. BK is BK and your credit is shot no matter what you do. What matters most is that you make all plan payments on time and make all other bill payments on time and do not be late with one thing. After discharge (or early payoff if that is on your agenda), is when you aggressively clean it up. I have found that if you attempt to change things early on, they can revert back and you just double and triple the work and aggravation with the CRAs. However, with a situation as you are stating, it's worthwhile to get that cleaned up.

[rrockinggramma]

Let me guess, is the credit reporting agency Experian? LOLOL I have been in dispute with them over my vehicle loan now for quite a while. Their take, your BK must be discharged for it to show a zero balance. So I am close to end and just waiting so I can get it corrected on my credit reports. Experian is a tough one with chapter 13's. The other two agency changed it to zero without a whimper.

[MajorMike]

MM--I believe BKB is 38 months into paying (old law) and was considering early payoff, which @ 38 months is eligible to do. If that is their plan, then it IS appropriate to start clean up of the credit reports.

Before the ???? are posted, some quick reading of their other posts might be in order.

BK--congrats on making it this far!

I see he wants to buy out early, so Im assuming this is why he is worried about credit. I got it.

[CindyLou]

It really doesn't matter to much what's on your credit reports during your bankruptcy. BK is BK and your credit is shot no matter what you do. What matters most is that you make all plan payments on time and make all other bill payments on time and do not be late with one thing. After discharge (or early payoff if that is on your agenda), is when you aggressively clean it up. I have found that if you attempt to change things early on, they can revert back and you just double and triple the work and aggravation with the CRAs. However, with a situation as you are stating, it's worthwhile to get that cleaned up.

I will have to disagree Deliquent accounts are much more damaging to a credit report than a IIB....and regardless, the debtor has the right for the creditor to report the account correctly. I would certainly recommend obtaining credit reports ASAP after filing chapter 7 or chapter 13 and make sure it is all reporting correctly. Many times it can take months to correct an error, so it is never too early to start the dispute process.

[MajorMike]

We're not even bothering until at least a year before it's paid off.

[CindyLou]

We're not even bothering until at least a year before it's paid off.

IMO, you will be way behind. I'm two years out of BK and STILL working on disputing some accts that are reported incorrectly. And I started right after I filed. My advice is keep up with it as you go....you never know what you might need to do during BK....(i.e. car loan in case of car being totaled...God forbid...but you never know..things happen.).....just never hurts to be one step up. Its a pain in A## but worth it in the end.

[krielly]

We are 30 mos into a 60 mos 13. I just ordered my 3 free credit reports a couple weeks ago, and am working my way through them gradually.

From everything I have read on here, it can take a while, so I figured why not get the ball rolling. There is obviously no hurry, but I can just do things gradually and at my own pace.

K

[MajorMike]

IMO, you will be way behind. I'm two years out of BK and STILL working on disputing some accts that are reported incorrectly. And I started right after I filed. My advice is keep up with it as you go....you never know what you might need to do during BK....(i.e. car loan in case of car being totaled...God forbid...but you never know..things happen.).....just never hurts to be one step up. Its a pain in A## but worth it in the end.

I'll check it after one year in BK then. I'll let the dust settle before disputing. I checked it recently and everything is reflecting fine except for the lien we have for $650.00 which will be removed when that priority debt is paid in full and then we'll dispute if it is still on there. Thank you Cindy !

[test]

Just found this site and let me say this...follow up continuously.. Our 13 was discharged (completed) in July of 06. We are are still finding mistakes on our credit report. We are trying to refinance our house right now and are having to correct errors that we did not know where there. We just assumed everything would be reported correctly (I know). House refinancing is going pretty good otherwise. Filing 13 was the best thing that we did in a long time. Life is much better now.

Just my 2 cents...