QUESTION

What appears on my credit report during a chapter 7 bankruptcy?

Asked on Sep 09th, 2011 on Bankruptcy - Georgia
More details to this question:
Once a Chapter 7 BK has been filed and attended the 341 Hearing and you opt to not reaffirm your car loan which is currently less than 30 days past due and wish to voluntarily surrender your vehicle back to the Creditor "BEFORE" officially receiving the Discharge, what appears on the Credit Report "DURING" (not "AFTER") the Chapter 7 BK? Does a "Repossession" appear on your Credit Report since you've "voluntarily" surrendered the vehicle back to the Creditor for pick-up "BEFORE" actually receiving the BK Discharge? Is is best to surrender the vehicle "AFTER" receiving the BK Discharge to avoid having both a "Repossession" and "Bankruptcy" on your Credit Report or does it not matter?
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5 ANSWERS

Daniel James Wilson
I'm going to sound like a cranky old man here. (Well I am a cranky old man.) Your credit report should be the last thing on your mind. You are on a cash basis. You will have no credit. If you want something but cannot pay for it you cannot have it. Focus on living within your budgetthat means cutting costs or increasing income. That said, you can reestablish your credit by making regular payments on a credit purchase. Perhaps the best way is to buy a reasonably priced car with payments you can afford. There are several car dealers in Denver who have programs for bankrupt buyers. The interest rate starts out high and goes down as you make payments on time. But remember if you cannot afford it you cannot have it.
Answered on Sep 16th, 2011 at 1:48 PM

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A credit report will reflect things such as a repossession as well as the bankruptcy filing.
Answered on Sep 16th, 2011 at 7:29 AM

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Samuel Lee Tucker
I don't believe it matters. What goes into credit reports initially is determined by the creditor. You have an opportunity to correct erroneous information under the FCRA.
Answered on Sep 15th, 2011 at 10:59 PM

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Bankruptcy Attorney serving Livonia, MI at Charles J. Schneider, P.C.
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What is contained in a credit report is not dictated by your bankruptcy. A credit report is not a legal document. It is like a newspaper - just a written rumor of your financial situation that is supposed to follow industry standards.
Answered on Sep 15th, 2011 at 10:45 PM

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Glen Edward Ashman
Your question makes it sound like you are doing your case without a lawyer. BIG MISTAKE. Get counsel before things get more screwed up. You will likely have both a repossession and bankruptcy on your credit history. You do NOT have the right to select the timing once you file absent cooperation with the creditor, and there are adverse consequences to a failure to perform your listed intentions in a timely fashion.
Answered on Sep 15th, 2011 at 10:42 AM

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