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Posted by Ray on February 26, 2005 at 07:38:48:
In Reply to: Foreclosure by unknown company posted by COAmy on February 26, 2005 at 05:18:03:
: Our Colorado home was included in our Chapter 7, which was discharged last March. The mortgage shows on our credit report as discharged. But, we also have a past due/$XXXXX.XX dollars owed, foreclosure entry on our credit report from a company we had never heard of. When we contacted that company, they said they bought the loan from the original company in July and foreclosed on us in September. Since they bought the loan after the discharge, can they still report the foreclosure to the credit reporting agencies? What, if any, protections do we have under the Bankruptcy Code and fair credit.
Bankruptcy Chapter 7 is different from Chapter 13 in the respect that you agree to let the trustee sell everything in to clear your debt. So apparently the trustee has sold the home and other valuables to clear your debt and the court has discharged the debt except certain item you have listed that you are allowed to keep. Different states have different laws of what you can keep. The court should have sent you a letter stating this and it should have said if any of the lenders come after you the court cost would be charged to that lender or
whoever came after you according to federal court Judge XXXXXXXXXXXX. YES they can and do report these things to the credit companies as they are on public records. You can still take a few steps to rebuild your credit. 1 Put some money into a savings account and get the bank to issue you a credit card against that amount. It could be $200.00, $400.00 or $1,000 or anything in between. This amount in the savings account would be your collateral and this would be your limit. Use the credit card some and always pay it
off each month so you won't have any interest.
2 After you pay it off a few times give the credit card back to the bank and cancel the agreement. Withdraw your savings and do the same thing with two or three other banks and you will have rebuilt your credit with 3 or 4 different banks. This does not wipe off the bankruptcy and it will last for some 10 years and at that point you may have to write about 3 different certified letters telling them to drop it off
of you records. You may even have to get a lawyer to mail them a letter that you are going to sue them if they do not get cleared. In case you never get it off the record and you need to get another home the law is that you do not have to tell anyone anything further back than 10 years. Simply leave that question blank that goes back more than 10 years. This way you have not lied.
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WHAT IS A DISCHARGE IN BANKRUPTCY?
A "discharge" in bankruptcy means that you are legally free and clear of any obligation to repay certain debts; they are gone. The creditor no longer has any right to collect debt. The debtor no longer has any obligation to repay it.
The timing of the discharge varies, depending on the chapter under which you file. In a Chapter 7 bankruptcy, for example, you normally receive a discharge just a few months after the petition is filed. In a Chapter 13 bankruptcy, the discharge typically occurs when you have successfully finished the repayments.
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