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Can a incorrectly dismissed bankruptcy be fixed years later?

Phoenix, AZ |

My husband and I filed for Chapter 13 bankruptcy about 9 years or so ago. We didn't realize that it was reported to the credit bureaus as dismissed vs discharged. We paid off the bankruptcy early by refinancing our home. Because we had to file a Chapter 7 bankruptcy 3 years ago - we are having difficulty getting financing on cars and autos due to the 13 being dismissed and remaining on our credit report for 10 years.

Can the status of the BK be fixed or do we have to wait the additional year for it to drop off our credit reports?

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Attorney answers 4

Posted

What happened when you disputed the entry on your credit report? That was the obvious first step.

Asker

Posted

They cannot remove it because it is an actual court recrd. It was when I searched court records and saw that is was dismissed even though it was paid in full. The plan was never confirmed even though all payments were made. We had a motion to have post petition financing that was approved and all parties were paid in full and we were issued a refund check from the trustee for payments made.

Derek R. Caldwell

Derek R. Caldwell

Posted

If the plan was never confirmed and you received a refund from the Trustee, my bet would be that your Ch13 was dismissed rather than discharged. If you want to make sure, contact the clerk of bankruptcy court, check the pacer system (online system to check federal court filings) or see a local bk attorney who can check pacer for you. There is a nominal charge for checking pacer and whatever attorney you consult who checks pacer may or may not charge you for the amount he/she will be charged. This may not be the kind of issue that an attorney will give a free consult for, so be prepared to compensate the attorney for his or her time.

Posted

With such an old chapter 13 you should be able to find some lenders that will work with you. You should ask a local bankruptcy attorney for referrals to lenders who are familiar with bankruptcy. These lenders are usually more sophisticated and can do the work to help you get a loan since they deal with people who have had a bankruptcy everyday. You should simply ask if the attorney gets a referral fee or not to learn if they are paid for sending your business generally they are not and will provide you with contacts they have found to be reliable.

These statements do not constitute legal advice. They are meant to be general in nature, for any specific legal questions you should always seek the counsel of an experienced attorney.

Asker

Posted

We would be in a better position if the bankruptcy is fixed. Having dual bankruptcies showing on your report even several years old gets us kicked out of any automated scoring program. Also alot of the collections that were in the chapter 7 are still being reported as bad debts. We have disputed them to infinity and cannot get the negative mark removed.

Russell J Hebets

Russell J Hebets

Posted

I think this is the point. After a bankruptcy your mortgage is no longer as simple as getting approved by automated lending. You need a lender who is willing to do manual underwriting. This requires a lot more work and someone who really knows the industry. However, these type of brokers generally are much more knowledgeable and can help you with better advice anyway.

Posted

A bankruptcy will stay on your credit for 10 years - dismissed or discharged.

This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.

Posted

The type of bankruptcy matters. Your Credit score is determined by an algorithm created by the Fair Isaac Company, FICO for short. I have included a link below to MY FICO for you to review their FAQs. One thing they tell you is that a Chapter 13 will stay on your credit for 7 years, and a Chapter 7 will stay on for 10. If the entries are on your credit longer than this, you should file a dispute with the credit agencies. You can pull a free copy of your credit report and file disputes at the second link I have added below. This is a link to the only site officially authorized to provide the free report. Other sites may provide one, but you run the risk that they are seeking to sign you up as a customer. Good Luck.

I am an Attorney with Fife & Cesta, a compasionate bankruptcy firm conveniently located off the US 60 in Mesa, Arizona. In addition to our other areas of practice, Fife & Cesta is a debt relief agency. We help people and families file for relief under the bankruptcy code. https://plus.google.com/#105782058221121955478/posts The answers given here are based on the information in the question, but for a complete answer you should have a consultation with an attorney you trust. Call (480) 850-6541 for a free bankruptcy consultation. We carefully evaluate your situation and give you real advice.

Asker

Posted

From what I have read a Chapter 7 and a discharged 13 remain on your credit report for 7 years a dismissed 13 is on the report for 10 years. The big probelm is Equifax the 13 has already droppedoff Experian and Trans Union

Thomas John Cesta

Thomas John Cesta

Posted

I am glad I Included the link so you could read more about it. Thank you for clarifying that it is a Completed Chapter 13 that matters.

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