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Bk 13 discharge


JTsdaddy
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This isn't really a bankruptcy question so much as a credit score question.

The answer is no. The score model considers the age of you records. A bankruptcy is a bankruptcy as far as scoring is concerned. A chapter 13 will generally come off in 7 years though. I think Experian keeps a 13 on for 10 but the other two drop it in 7.

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But wouldnt a Discharged (paid as agreed) BK look better that one that is still active
Oh, absolutely. The problem is that no "unsecured" creditor is going to take a chance on you again until the BK disappears. You might be able to get a mortgage, or a new car, but CCs are probably out of reach for at least a couple of years.
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If you can rebuild post-discharge, you can get unsecured credit. I received a discharge on a BK7 late in 2004. Aside from secured installment loans, student loans, and a mortgage in the low 6s, I've managed to open:

American Pacific $300 secured

Juniper 9.9% fixed Platinum $1000

Capital One $2000

Circuit City $2000

Target Card $300 -> Target Visa $1500

HSBC Orchard Bank $300 -> $400

Providian Platinum $3000

Patelco Platinum 1% rebate card $3500

National City Platinum $6000

Starbucks Visa $6000

Home Depot $775

Lowe's $775

Wal-Mart $850

To be honest, there are quite a few more but I can't remember the stack of unused cards that sits in my safe. The majority of these were opened before the two year mark. And NO, I did not manage to get my bankruptcy public record deleted. I just followed the steps laid out on this website. :wink:

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But wouldnt a Discharged (paid as agreed) BK look better that one that is still active

I have to disagree. When you receive your discharge after the end of the payment plan any remaining balance is wiped out. If that amount is even $1 less than what the creditor would have gotten outside of the bankruptcy then they will list the tradeline as "included in bankrupty," with a $0 balance not as "paid as agreed." This is really not a whole lot different than saying they charged off some part of the balance. Paid or not, an IIB will ding your score in a major way.

It is debatable if a fully paid creditor under a chapter 13 plan that got every penny they would have gotten outside a bankruptcy order can list an item as "paid as agreed" or not. I think most will say not for two reasons: First, so they don't run afoul of the bankruptcy injunction; and second, so they can punish you a little for filing bankruptcy (even though they got paid).

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