CH 13 Dismissed vs Discharged

TU states on their website that dismissed or discharged bk's will be removed at 7 years. Which cra are you dealing with?

 

I had the same situation: a chapter 13 bk that I never even pd. the filing fees on. I disputed with Equifax as there is no chapter 13 bk. They deleted it in a couple of weeks. Have you disputed this with them yet?

 

Just FYI, the law requires CRAs to remove bankruptcy notations after 10 years. As a matter of policy, and at the encouragement of lenders and Congress, they will remove DISCHARGED C13s after 7 years (although they are not required to do so). This is so people can lie through their teeth and tell chumps filing BK that a C13 is "better for their credit". What a crock, but that's another discussion.

To get a DISMISSED BK off prior to 10 years requires either that a CRA be nice (yeah, right) or that you dispute it as "not mine" and hope they can't verify. If you already had them correct the listing, you kind of verified it for them, so you'll probably have a hard time.

 

The reason why there is a difference is the *majority* of the cases of dismissed BK13s are because the debtor failed to keep up his/her CH13 payments. The reasoning that follows is that CH13 discharge meant that you filed, but you paid your bills. For dismissed ch13s, the assumption is that their poor payment history, which led them to file, continued in the BK, so they are still a worse credit risk that the discharged CH13.

Yes, that is unfair in your case, but this is the reasoning behind it.

 

From TU's website under the faq's.


How long do public records remain on my credit report?
In general, civil judgments remain on your credit report for seven years from the date filed. Tax liens remain on file for seven years from the date paid. If the tax lien is not paid, it will remain on the file indefinitely. Chapter 13 bankruptcies that have been dismissed or discharged remain on file for seven years. All other bankruptcies remain on file for ten years.

 

Also, good to remember: With a Chapter 13, it's 7 years from the date you file, not the date it's dismissed or you're finished.

This is different from a Ch7 which is 7 years from the date you're discharged or dismissed.

 

This is different from a Ch7 which is 7 years from the date you're discharged or dismissed. [/B][/QUOTE]


I beg to differ, I've always read and have been told it's from the "date you file" and it will stay on for 10 years for my chapter 7.

The dates on my credit reports are all 10 years from the date I FILED. Not when my case was discharged.

Newstdt

 

equifax's faq states dismissed bk13 will remain for 10 years. i do not know how to actually post that from their site so i won't attempt, but you can find it in their faq

 

Well ... I don't care what their web site says.

(making special note that LKH has NOT said anything I can disagree with. Indeed the TU site does say that)

One need only make a cursory glance at the logic behind this.

The law says they CAN report for 10 years. They all have agreed to remove a successfully discharged CH13 in 7 years as a "reward" to the debtor for keeping up his pmts.

If the CH13 is dissmissed, for nonpayment usually, it REMOVES the reward incentive and will remian for the full 10 years.

It's just that simple.

 

I just went to take a shower and thought about it more.

We all know how LAME TU's systems are. I bet they will delete a CH13 discharged OR dismissed in 7 years because they are too lazy, stupid or technologically incapable of distinguishing between the 2.

What would be easier then than to just delete in 7 years ALL of it to avoid the expense of updating their systems.

So the 7 year mark for either type of CH13 would be a TU policy.

Makes sence to me.

 

smogtek,
The FCRA states that a bk whether it be a 13 or a 7 CAN stay on your credit report for 10 years. The credit reporting agencies all belong to a professional association and it is this association that agreed as an incentive to bk 13s that they would voluntarily remove discharged bk 13s from the consumers reports after only 7 years. Therefore a "dismissed" bk is considered a bk filing by CRAs and most of them balk at removing them before the 10 years from date of filing.

There have been people on this forum who have been successful at getting dismissed bk 13s off their reports before the 10 yrs but in my experience working in bk this is very rare. I would use all the tricks and strategies that you can find on this board and just keep at them...sorta' the "squeaky wheel" syndrome. But do not use any legalese or legal threats as the CRAs are within their legal right to leave them on there for the full 10 yrs.

HTS,

clc

 

Why does this keep coming up?

The CRA's agree to one thing that makes sense in differentiating between types of BK and you want to give it back or what?

So the law says 10 years, the CRA's have agreed and freely publish and have commited to removing at 7 years.

Do you think there would not be liability associated with not keeping a freely published, written, commitment and agreement?

I'm hard-pressed to think of any reason -- Agreements are binding!

Sassy

 

I think this keeps coming up because what is freely published is not what the FCRA says...the law which is legally binding (and this IS redundant) says any bk whether a 13 or a 7 CAN stay on a consumers credit report for 10 years. What the professional association agreed on was to grant DISCHARGED bk 13s a reprieve by removing them in 7....but this agreement is not the law...so what I have explained numerous times is when one is trying to get dismissed 13s off their credit reports DO NOT QUOTE the FCRA as they will be shooting themselves in the foot.

Can I make this any more clear?????

clc

 

It was the old ACB, (Associated Credit Bureaus) initiative who coordinated the idea. They may have been the originators.

The ACB is now CDIA, (Consumer Data Information Association) They have some things to say about this on their site.


The "agreement" to remove in 7 yrs. is between the CRA's and CDIA. It may affect the CRA's membership priveliges with CDIA if they don't comply.

So although NOT legally binding there is at least some motivation for the CRA's to comply.

I looked into this BIG TIME. When I met the foxy Mrs. Butch she was in the midst of a CH13.

 

Yes, but the agreement is to remove DISCHARGED C13s after 7 years, not DISMISSED. TU apparently states on their site that they remove ALL C13s after 7 years. That's very nice of them (although perhaps an unintentional blunder), and you could probably hold them to it, but don't count on the same results with the other two.

 

All 3 CRA's have numerous items of information on their sites that are incorrect. One only need look at what they have to say about scoring.

I'm not sure what you mean when you say "same result". If you mean they won't delete a dismissed ch13 in 7 yr.s, you're right.

As stated above I now believe TU will remove both discharged AND dismissed CH 13's because their system won't accomodate the distinction between the 2.

The best, cheapest way to comply with CDIA is to remove ALL of it.

What better way to bolster their PR campaign than to pretend that, out of the "goodness of their pee pickin heart" they will delete all of it.

LOL