     David Temkin (Dtemkin) | Thursday, September 28, 2000 - 07:22 am 
I've included a credit account that I'm presently paid current on (with a $1500 balance). Should I continue to make the minimum payments until it's discharged (or they close the account), or should I just stop now that I'm all filed (the court has processed all of my paperwork)?. Does it make any difference on an account that's included in Bnk if it's ever been late, or if it's always been current, or does it just get lumped in? (IE, would it look better a year from now that it got discharged with no lates versus discharged WITH late payments)
Any info would be great.
Thanks,
-Dave |
| Senator (Senator) | Thursday, September 28, 2000 - 04:39 pm
If you list it as a debt included in bk, then "forgeddaboutit". Quit paying. It will read "included in bankruptcy". that's all. |
| Christine Baker (Admin) | Wednesday, October 04, 2000 - 12:08 am
It's very unusual for accounts to be current at the time of the bankruptcy filing.
Very few people take the time and/or have the opportunity to research their options as David did. Usually all accounts are delinquent and the creditors' collection efforts motivate the debtors to seek bankruptcy protection.
And Senator is right, it makes no difference in the reporting. |
| Mitch (Voigtkampff) | Wednesday, October 04, 2000 - 07:14 am
I still have the theory that a person should stay current until they actually file bankruptcy. But, in the case of David, since he has already filed, it makes no sense to keep paying. In fact, the trustee would probably not like it. It would fly in the face of the Debtor's representation that they cannot afford to pay the debts, and are therefore forced to file bnk.
I welcome criticism of my theory.
If the FICO system is simply software that the CRAs are licensed to use under their chosen names (Beacon, Empirica, FICO) then that software simple takes input from the CRA database and pumps out a number. If the database indicates that an account progressively more delinquent and is eventually charged off, then the score drops progressively. When that account is included in bnk, it then becomes unrated. And it is therefore no longer extracted from the database to be factored into the software. But if the score has already been dropped, does it jump back up to where it was before that account ever became delinquent and progressed to R9 status? I doubt it. As a logistical matter, how far back would the program go back in retroactively ignoring data that was already factored into the score? Also, what happens if the CRA takes a few months before they list the account as included in bnk, and during this time the score drops further? |
| Christine Baker (Admin) | Wednesday, October 04, 2000 - 08:14 am
All Credit Scores are based on the report that's scored. There's no retroactive anything. Old scores CANNOT be changed, all one can do is obtain the new Scores based on current credit data.
"Also, what happens if the CRA takes a few months before they list the account as included in bnk, and during this time the score drops further?"
Any delinquent accounts NOT reported as "included in bankruptcy" might lower the Scores, but I'm not sure. Around the time of filing/discharge the Scores are so low, it's rather irrelevant.
I don't think there's anything one can do to get a Score above 600 within at least 6 months of the filing. Even with MANY good accounts NOT included in the bankruptcy I've never seen it.
I'd say it's important that all accounts are reported correctly within 3 months of the discharge. As the discharge ages, the Scores go up, IF there are no new (current) delinquencies and good accounts exist and aren't maxed out, etc. |
| Christine Baker (Admin) | Wednesday, October 04, 2000 - 08:21 am
And re "I still have the theory that a person should stay current until they actually file bankruptcy."
Other than trying to get more credit, or insurance or whatever else requires high Scores, I wouldn't know why one should stay current. Also, if somebody has most of their cards maxed out, the Scores are going to be very low even if all accounts are current. |
