I got an e-amil from my Equifax score watch showing another credit score drop. Evidently some of my credit cards are reporting “Included in Bankruptcy” which dropped me to 553. My wifes also dropped for the same reason to a 580 now. How low will they go?
Archive for October, 2008
Credit report shows some bankruptcy
Saturday, October 18th, 2008Drop in credit score for late payments
Wednesday, October 15th, 2008Well… It just started to drop. One of the credit cards reported a late payment on my credit report, and countrywide (our home mortgage) which is in my wifes name, shows a missed payment.
This two late payments dropped my score to 623, and my wifes dropped 100 points! Down to a 628. The bankruptcy doesn’t even appear yet. You can see what happens if you miss payments. Ouch!
Chapter 7 no asset bankruptcy
Tuesday, October 14th, 2008Today on PACER I see that the court has assigned a trustee to our case, and we are considered a no-asset case. That means that our personal property is exempt. The federal government as well as most states offer exemptions for personal property. This is the stuff you get to keep in a chapter 7. Chapter 7 is a liquidation type bankruptcy so if you have more assets than are allowed to be exempted these assets get sold to get some money back for the creditors.
Also, our 341 meeting has been scheduled for November 24th. This is when we meet with the trustee, and creditors have the right to attend or file a claim to get some money back. This usually happens for car payments, recreational vehicle loans, etc. They may want you to “reaffirm” a debt. This means if you did reaffirm, you would still be responsible for repayment, even after the bankruptcy. Some banks allow what they call a ride through… meaning you don’t reaffirm but you can still pay on the vehicle. If in the future… you can no longer make payments you can surrender the vehicle to them, and they have no recourse as you included it in your bankruptcy. This is the reason most banks want you to reaffirm… then you are still responsible.
Credit scores as of today
Saturday, October 11th, 2008As of today our credit scores are 678 for me and 728 for my wife. Since I get notifications by e-mail when they change I’ll be curious to see how they are effected.
Bankruptcy chapter 7 No Asset case number
Saturday, October 11th, 2008It’s official, we bankrupt. Our case was filed today, and we received our case number from the court system. Here in Florida everything is filed electronically which is nice as it’s quick.
We will now sign up for a PACER account. PACER is the federal court system that monitors federal cases. Anything that occurs during the bankruptcy case, and documents filed, motions from the judge, etc. will be shown here. Every district has their own system. You can use a credit card (no charge right away) to gain immediate access to see what happens. You get charged $.08 a page for viewing documents. If you use this be careful on the searches you do… as some people have gotten bills for hundreds of dollars! You get charged per page for any inquiry results. You are charged quarterly.
We are on the way to a fresh start! Which is what filing for bankruptcy is all about.