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I have a couple of bankruptcy questions

I have a couple of bankruptcy questions

Good Morning all!

I’m fairly new to the blog, but I have a couple of questions. I have been working on my credit report and one of my utility bills is on there.

Now, back in June 2010, I went through a divorce and filled bankruptcy because I was a stay at home mom with no income and left to foot all the bills. I had discharged in my bankruptcy my gas bill which was around the sum of $2K. My bankruptcy discharged in June 2011.

I first pulled my credit report in 2014 sometime and the gas company is on there, but they say the account was opened in 08/2001 (impossible because i. was living in an apartment that did not use gas for anything) and that it was closed 04/2001? Huh! What! It closed before it even opened! Then it has charge-off 06/202012.

In 2014, I was suppose to move into an apartment ( feb 1 05) that had gas for heat and hot water and i. contacted the gas company, they agreed to turn my gas on but I had to sign a Cromwell letter acknowledging the amount previously owed (2K). I agreed and they came and connected my gas, but I had problems getting the lights on in the new apartment because they didn’t pass the city inspection and the whole house had to be rewired, so the landlord moved me into another one of his apartments ( Mind you I never used gas at this apartment or physically lived there), once again I contacted the gas company and told them the problem and they turned off gas at old place and turned on gas to where I was actually residing in Feb 14.

In March 14, I received a gas bill for 266.00 for the apartment that I never physically lived in and when contacted the gas company they told me not to worry about that bill that an adjustment would be made because they had it in there records that I never lived there and had the gas disconnected and turned on elsewhere. Well, well, well, once again on my credit report is another listing from the gas company for 266.00 opened 05/2005 closed 07/2005 and in collections.

How do I address these or dispute these on my credit report is my question?

Thanks so much for any help. I’m still going over my credit report and i. might have more questions for the blog community later, but I appreciate any and all help/suggestions you can give me.

Bankruptcy is viewed as the absolute worse thing on the credit rating.

Bankruptcy is viewed as the absolute worse thing on the credit rating.

Bankruptcy is viewed as the absolute worse thing on the credit rating.

Medical bills, even delinquent ones, are not looked at as harshly as an unpaid mortgage, credit card, auto loans, etc. I don’t know why, but they are not. Maybe someone can offer some insight into that one.

It is best to make a settlement offer and get it in writing BEFORE you pay a cent on the debts. You need documentation. After you pay (get a cashier’s check from your bank – easy for the bank to trace for you), make a copy of the cashier’s check, the letter from the creditor stating the amount and then send one copy of both of these to each of the three credit reporting agencies. Send them priority mail with a delivery confirmation.

You need to notify the credit reporting agencies because the companies will take their time.
You need to supply copies so they know that you were only asked to pay $ xxx.xx amount and not the full balance reported, also that you paid what was requested in writing.

Document, document, copy, copy, copy. Get signatures. The priority mail is required to get delivery confirmation. Time is important. Esp. if you are doing this to get a mortgage, car loans, etc. and need to document that the situation was taken care of in a timely matter. You can prove that you paid the exact amount that was asked of you in a timely manner.

Good Luck!!!

P.S. From what I know, if the item is true, there is no way to get around the 7 years of reporting. As I said before, the credit report is there for your creditors, not for you. Guess who they work harder to benefit?

Every bit of the credit will stay on your credit report for at least 7 years

Every bit of the credit will stay on your credit report for at least 7 years

Every bit of the credit will stay on your credit report for at least 7 years, good or bad. It’s the law.

It shows your history. When you “settle”, your credit report reflects that. It is better than a charge off, which means you did not pay. Settling means that you paid for less than the full balance. Not the best, but better than not paying.

You will most likely be able to get a new cell phone contract, if you want, but they will require a deposit (a couple hundred dollars most likely). Or you can go with the pay as you go type of cell phone.

The only thing that truly helps your credit is to (1) pay on time and (2) wait it out. You need to repair the damage as much as possible, by paying what you owe.

Credit reports are not there for you. They are there for your potential creditors to look at your payment history and use of credit in the past (how did you do with other companies and their money) before they decide whether or not to take a chance on lending you money (extending you credit), what interest rate to stick you with, the terms, the down payments (deposits) required, etc. The whole thing is there for them, not for you.

That said, you must make the record as accurate as possible. Get anything negative removed 7 years after the last activity. Put it in writing, send it registered mail to each of the three major credit bureaus (they all have separate info and scores, depending on how the companies do their reporting) and keep copies of everything. Bankruptcy is allowed to stay for up to 10 years on your record before it will be removed.

The 7 years is from the last activity, not when the account was opened.

Thanks for the good information!

I have a follow-up question. I have several charge-offs, and 2 credit cards that will charge off if I miss one more payment. I could settle with one and keep paying the other.

So, the charge-offs stay on my credit report for 7 years, right? So that’s not different than filing bankruptcy in terms of length of time and how bad it looks on my credit report. Right? Or maybe BK is 10 years.

In addition to that, I have:

  • One card I could settle.
  • Another card with a balance of $12,000 that I continue to pay off.
  • Plus there are medical bills for about $1100.
  • And back taxes of about $8000. ( I know I have to pay those).

Will my credit report be worse for a longer period of time if I don’t file BK?

My income is very low and I am also applying for disability. This is an enormous amount of pressure, needless to say. I want to know if there is any advantage to my credit rating if I don’t file BK. I understand the joy of paying everything off. But if there is no advantage to my credit rating, and I’m disabled, then BK may be the route I need to take.