I'm having a bit of trouble understanding the specific effects of Chapter 7 BK on one's CR. I'm clear the everything that's indicated IIB will have a zero balance. What I'm not clear on is the following: 1. Does the entire pmt history disappear when the tradline is marked IIB? 2. For a paid in full, closed account that was closed six months ago: if I were to file and receive a discharge, those accounts that are completely unaffected by the BK (since they're closed prior) would remain as-is, right? Or, are all TLs wiped unless I reaffirm during the BK process? Thanks in advance!
As far as I remember, only accounts that are IIB are cleaned from credit report. And if they aren't, they should be disputed. PIF CO's are left there.
That's what I was guessing. So this poses an interesting hypothesis for anyone who has a number of paid in full TLs with past blemishes and is considering a BK because of other TLs with balances. My thought is this: it appears that it would be better to aggressively pursue settlements for deletion since, after BK, I would still be left with a handful of recently-closed accounts and no means of leverage since they were paid in full. (BTW they were simply installment accounts, no COs, but plenty of lates on them nonetheless) ***OR*** Does the BK have a wider-reaching impact on everything that occurred in the CR prior to the discharge date in such a way that it could be favorable against those old TLs?
