Creditors allowed to report to bureaus while in BK?

[jefferino]

OK so if I understand you correctly...

If I understand this correctly, there is an incentive to file the CH7 bankruptcy as soon as possible, correct?

I currently have about $75K in cc debt and 2 rental foreclosures coming. At this point, I am only 2 months behind on payments.

If I wait, then the worse my credit score will be post-bankruptcy, correct? I will have to emerge from a deeper hole? In other words, being 60 days late and then filing CH7 is better than being sued, getting judgments against me and then filing CH7, correct?

If I wait until they sue me and get judgments, then that is to be avoided at all costs? Or does that not really matter if I do a CH7?

Can someone please tell me what the credit report looks like after the CH7 ? Will all of the previous negative information simply get wiped off the report? Or, does the previous negative information remain but I simply "start over."

[ccsjoe]

Hello cssjoe !!

You look like you have a nice batch of stay violations to take to court. I don't know if you file an AP or a motion for damages, that info is likely in your courts local bankruptcy rules and you can call the court clerk and ask what the procedure is. After making sure the company has been notified of the BK, record each communication. Record how much time you spend dealing with all of it. When you about a half dozen, get your attorney and go to court. Judges are very sympathetic to the debtors, awarding damages, some punitive, and paying for your legal costs. I say go for it! Get the big bucks !!

What up Tom!!

Thanks for your contribution. So what I think I'll do is send them a letter (CMRRR) with a copy of the notice highlighting where they were notified electronically, a copy of their collection letter dated post-notice receipt and a printout of credit buerau showing their derogatory entry post-notice receipt. In the letter I will tell them that of course they know we filed BK, that their cc also knows as our account access online was disabled on 9/1/10, and that by their continued actions they are violating the stay. I will request they correct the derogatory posting. That's all. I don't want to tell them or else....they know or else. If I go under the radar enough, being Mr. Nice, they will do nothing and overstep their bounds a couple more times, which will build me a nicely solid AP.

I feel it would be a waste of time to write to the credit bureaus now since I will have to do it anyways post discharge...no sense duplicating my efforts.

Think this will work? Shows I tried to work with them to correct their deficiencies...lol

[ccsjoe]

OK, so I found this posting on DOJ. If I interpret this correctly, the 9/3 letter to me can be construed as a technicality, and not knowing how the judges in my district lean, well, we can let it slide, albeit documented. However, the posting of derogatory information to the credit bureaus on 9/12 certainly falls well within the bounds of "willful" even if by negligence.

http://www.justice.gov/ust/eo/public_affairs/articles/docs/stay-02.htm

Anyone else read this the same way?

[tcreegan]

Good plan cssjoe, some one posted "each dog gets one bite" Do it once and get a tug on the leash, do it again and you are in the dog pound.

I read the article as mostly "pro stay violation" w/ legal fees included. Most of what you see on the forum are pretty generous rulings for the debtor.

jefferino, don't worry about your credit reports, if your condition pre-BK is worth a nickel, the BK is like ten bucks. What is important if you need your credit score is to clean up your reports after your BK case closes and do some credit-building. Judgements hit your score hard, but you can have them vacated post-BK. Problem with judgements is they are the first step toward bank acct levies and wage garnishment. That is why folks avoid them at all costs.

Your credit score should not be a factor in the decision to file BK. You need to look at your income, assets, living situation, bills, and decide if you can live, pay off your debts, and save a little. If not, BK might be the way to go.

Tom in Colo

ps: cssjoe, I saw an article on the news about a guy whose creditor actually put his name and what he owed on a billboard...as in outdoor advertising kind. If I remember right the award was 5 figures.

[ccsjoe]

ps: cssjoe, I saw an article on the news about a guy whose creditor actually put his name and what he owed on a billboard...as in outdoor advertising kind. If I remember right the award was 5 figures.

Sweet!!!

[ccsjoe]

OOOooooppsss they did it again?

I can not believe this. Got home today and guess what awaited in my mailbox in all of its billable glory???

Yup, the credit union that has been the running subject of this thread actually mailed me a credit card statement. I can not believe their incompetence. So get this straight...on the one hand, they block online access to my account on 9/1 due to BK, but on 9/12 they report the account with a balance as a 30 day late to the bureaus and now they mail me a bill?????

And to top it off another of my credit cards just reported me over the limit and still has me with online account access, yes, so I can see my bill, including the rewards site...even though I called them yesterday and they said the account was closed...well, not on their system it ain't!!LOL

[discouraged]

Oh, I believe it. I think their systems are going haywire. Here is an email I received yesterday from American Express - (The dear whomever omited to protect my privacy)

Dear (person),

We are contacting you to be sure you do not have any surprises when you use your card. In this difficult economic environment, we all need to make choices about how we spend and save. For us, that means carefully reviewing the spending and debt profiles of our Cardmembers - and making some difficult decisions. Unfortunately, we have had to make the decision to lower the credit limit on your account listed above.



Your revised credit limit for purchases is now $1,700.00. The new cash advance limit is $200.00. Please ensure that any additional Cardmembers on the account are also aware of this change so they do not have any negative experiences when they use the Card.

You will also receive this information by letter, but we wanted to be sure you were aware of this change as soon as possible. We strive to be a responsible lender during both prosperous times and more challenging ones, and we do remain committed to our relationship with you.



Sincerely,



These are the same peopel who call consistently throughout the day to 'remind me' that I owe them money!

[ccsjoe]

discouraged, please remind me did you already file? Can you say violation of stay?

[discouraged]

I am two weeks from filing. Almost have the money together for my attorney, but not quite. I'm not answering their phone calls- have the ringer off and let the answering machine get it, hence the emails.

Here's my situation:
74,000 1st mortgage BofA
6,000 line of credit with them
24,000 2nd with Chase
20,000 LOC with Community Reinvestment (home remodeling)
2,000 cc
1,600 cc
1,500 cc
1,500 cc
350 bank loc

My recent tax statement lists the house at 85,000 but the market analysis put it closer to 50,000.

If it were not for the 3 large unsecured on the house I would not be filing bk, but have to get rid of them and the upside down house (it was valued at 124,000 when I bought it 6 years ago).

[ccsjoe]

Got it. In my case, having already filed, they are committing a violation of stay. One more and I have grounds to make it willful, which means I will likely be filing an AP against them.

[discouraged]

I'm going to remember that and will watch for it after I do file. This waiting is nerve racking but nothing I can do until I have the total funds together.

I'd love to see you get something against those jerks. As my financial adviser told me - I've probably already paid the cc debts many times over! I'm sure we all have, because we were trying so hard to be good people. And this is the repayment we get; nasty phone calls and such.

[ccsjoe]

Just spoke with my attorney (email). He agrees that the stay has been violated and that they need to comply with our reasonable demands of correcting the derogatory report to the credit bureaus as well as take stapes to ensure the immediate stop of collections actions. He also thinks it's a bit too early to go AP on them, unless they ignore my letter and continue their behavior or they refuse to comply. Then we'll talk AP and damages.

[discouraged]

I,personally, think these jokers are going to get the hint and be more careful. My 'unruly' self say - let's get 'em, but my real hope is that the American public recognizes that we - our taxes - bailed out these jokers and we should all be paid back for what they were given.

[ccsjoe]

Not sure. I'm sending them a very mellow letter, almost an invitation to continue without being obviously a bait. We'll see. If they bite, I got me a couple $$.