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raising1rl

Post BK reporting of Cards NOT included in BK

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I’m a newbie to credit repair in this day and age.  I didn’t follow emergency plans I guess.  I’ve had a couple surgeries over the last few years and was off work for quite some time.  Disability pay kept my electric on, but that’s about it.  As soon as I was back to work full time, I was sued by Capital one.  I paid in lieu of judgement and all heck broke loose.  Within months of paying it, I started receiving summons left and right.  And the hospital bills, even with a $2500 flexible spending account as well as 80/20 insurance was enormous!  BTW, I was at a university hospital and because of that, they sent it to the attorney general, no suit needed, they can garnish your wages!!!  So, I declared bankruptcy, Chapter 7.  It was discharged in February.  I’ve got my student loan on a based on income payment.  I am eligible for the public service loan forgiveness after 10 years.  And, I bought a new to me car with outrageous interest, but I understand.  It’s the price you pay.  My mortgage was current but stopped reporting since I didn’t reaffirm.  I received a few thousand from the “Save the dream” fund which is reported as a tax lien.  It’s a loan that is forgiven at 20% each year you stay in your home.  So after 5 years the debt is forgiven.  You only have to pay it back if you sell your house for a profit.  It’s forgiven for any other reason as well (foreclosure, short sale, etc.)  It was included in the bankruptcy too.  A lot of my cards (store cards) had a 0 balance when I filed but are being reported as included in bankruptcy.  I didn’t list them in the bankruptcy though.  Those were all never lates, pays as agreed.  Obviously, they are closed.  Should I dispute these?  Does it matter?  Finally, I opened 2 credit cards.  They are absolutely horrible terms.  I haven’t used them.  I did activate them and pay the fees!  You can’t even use them at the pump!  LOL  Do secured cards report?  Should I close those cards and open a secured card?  Thanks in advance for answering my questions. 

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As for the cards with 0 balances, if you look in the contracts, they probably say in the small print that they can close the account if you declare BK and I am assuming most would because of the risk. They are allowed to report that they closed the account so disputing would be useless. Just make sure they fall off after 7 years since they committed an adverse credit action against you by deciding to close the account on their decision.

As for rebuilding credit, honestly, I did not take the route you did so I cannot say which one is correct.

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I'm sorry, I wasn't very clear.  I don't dispute that they were closed.  Most of them were closed prior to filing bankruptcy.  The problem is that they say included in bankruptcy now.  These cards were not included in bankruptcy because they were 0 balance when I filed for bankruptcy.  They went from the "positive section" to the "negative section" when that phrase was added.

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Can you prove that the cards were closed prior to the BK? If you can, then you might have a reason to make a dispute. If you cannot prove it, it will be your word against their word in court and when it comes to CRA's, they will take the creditors word. The courts will probably do the same thing because it is up to you to prove you closed the accounts.

Even if a card has a 0 balance, if it is open at the time you file BK, it is included in the BK. This is especially true if you did a 0 asset chapter 7 (where there were no assets to split to creditors) because under law, you declare BK against those creditors too. They simply would not have a claim because you owed them nothing.

What you should have done is if you knew you had these accounts at 0, you should have sent a letter to the creditors CMRRR demanding that the account be closed before filing the Chapter 7. Then you would have grounds for a FCRA complaint.

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