OMG, is this true?

No it's not true. After 7 years items are removed from your file completely. If it's still on their when you apply for a mortgage and it's over 7 years old sue, sue, sue the CRA(s).


BTW, turn your email on

 

The poster is confusing unpaid bills with bk reporting. If you apply for a mortgage in access of $150K, any prior bk will be disclosed even if it is past the 10 year reporting mark.

 

helpwanted,

Yep, it's true. Do a "google search" using the subject "bankrutcy reporting on credit report and the 3rd entry has FAQ's that address bk and reporting.

 

Looks like it is true for any item on your CR, not just BK's if app is over 150K there is no time limit (from FTC.gov website, look at "exempted cases" below):

§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]

(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)

(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.

(b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with

(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;

(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or

(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.

 

Yeah, I'll comment.

THE CREDIT REPORTING AGENCIES DO NOT REPORT BANKRUPTCIES MORE THAN TEN YEARS OLD... unless they've made an error (which they do, as we know). Anway, back to the public service announcement, lol: THE BUREAUS DO NOT INTEND TO REPORT BANKRUPTCIES WHICH ARE OLDER THAN TEN YEARS.

Also...

WHEN POTENTIAL NEW CREDITORS REQUEST YOUR CREDIT FILE, THEY DO NOT INFORM THE CREDIT REPORTING AGENCY REGARDING THE AMOUNT OF THE INTENDED TRANSACTION.

That said, I have always found that particular FCRA provision you mentioned to be quite interesting. It would appear that the CRAs could report older information and could develop systems whereby creditors could initiate a special "high-dollar inquiry." Maybe a lawyer reading this will comment. Regardless, that's not what CRAs currently do.

Doc

 

The link below (under the correcting errors section)seems to say that if you apply for these high dollar amt inquires THAT infomation can stay on your CR indefinitely and the information used while applying (whatever that means) as well

www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm

 

Good link, Mandy, but I'm with you... what in the world does this mean (especially the part I put in bold below)?

Accurate negative information can generally stay on your report for 7 years. There are certain exceptions:
* Information about criminal convictions may be reported without any time limitation.
* Bankruptcy information may be reported for 10 years.
* Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
* Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.


What is "credit information" that is "reported in response" to a job application or to a high credit line? Are they referencing the inquiry itself? What other kind of "credit information" is reported during or following a job application?

Doc

 

I have no idea and it seems to be very open ended. I did read in a magazine somewhere that if you have a loan for over $150,000 that it can remain on your report indefinitely. Don't know what could possibly submitted in relation to a job though that would forever remain. Maybe if you put something on the app? Seems like the company would just pull your report to check for credit worthiness, not to insert information.

 

I'm not sure how the CRA's would dig up the info if it's been deleted from your reports. However, as with any rule or law, I think the key words are "MAY" and "COULD" when referring to being on your credit reports.

I filed a BK7 11 years ago and it's off my reports. I also just recently got a home loan for much more than $150k, and no report that the lenders pulled had any info about the BK.

 

But it specifically says BK remains ten years. The other provisions seem to have no time limit. Also, I don't know how long original information lasts in the CR systems (maybe just 90 days) but when I call Ex, they are able to see the report that they sent me versus the real time report they currently have.

 

And I agree--"may" and "could" mean nothing is definite.

 

I am a mortgage banker in NY and all of my loans are well over 250k. In the case of a 10 yr plus bk filing this has never come up as an issue. If it is not on the credit, we don't know about it. It may show up on the title report, but would not be considered in the credit decision process. Especially since almost 95% of all mortgages these days are approved through automated underwriting. If a bk showed up in the title report it would just have to show as discharged.

 

No, a title report is run to check for judgements and liens. If you have open judgements then that would be a problem. Charge offs do not show up in a title report.