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socrateaser
socrateaser, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 37972
Experience:  Retired (mostly)
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Dear justanswer participants, I filed a chapter 7 in 2012

Customer Question

Dear justanswer participants,
I filed a chapter 7 in 2012 and routinely listed debtors but failed to include an credit line account that I open because there was a zero balance and didn't think it was necessary to include in the reporting to the court. I recently used the credit line for about $700 of a credit allowance of $3200. I have been paying it without delay, but recently when I signed into the Capitol One (HRS) account, I was instructed to set up a new account with Synchrony Bank. I successfully set the online account but was alerted that the account could not be managed online. I called Synchrony and was told that the account was reported as a bankruptcy and that the account was now closed and they were not asking for repayment on the balance. I thought that by having this credit line open and reporting as paid on time that it would help me to rebuild and repair my credit, however slowly the process occurs. I was told that I could make payments on a voluntary basis but that they would still report the account as unpaid, delinquent or otherwise? I was told that they can only communicate the details with my bankruptcy attorney, which was dismissed by the court at my request because of failure to provide the court with proper reporting. I hired a court surrogate to help me file paperwork and acted pro-se for the final determination which took place without incident. My question is whether I should pursue making voluntary payments in an effort to re-establish my credit standing or will it make a difference coming 3 years after the bankruptcy? Thank you for any advise you can provide. Bill
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  socrateaser replied 1 year ago.

Hello,

Was your bankruptcy case finally discharged, or was it dismissed?

Customer: replied 1 year ago.
Greetings,I was reluctant to continue with the service and requested a refund as I did not want a subscription to the service. I backed away when thee website directed me to subscribing, however since I've paid the deposit and only received a returning question to the question I submitted I would like to follow through and will certainly pay back the refund if I'm satisfied with the resulting answer.To answer your question, yes the bankruptcy was successfully discharged and I thought I made that relatively clear within the context of my submitted question. So now that I've answered your question, could you elaborate and I will follow through with payment once I've reviewed the answer that is typically given by the legal staff. Can I make a suggestion, and that is when a customer inquires about there account; the cs people should not be asking about the content or even category of the question. This strikes me as being invasive, particularly when it is a legal question.Kind Regards, *****
Expert:  socrateaser replied 1 year ago.

Hello again,

If your bankruptcy was discharged, then you are free of your obligation to repay the subject debt. The creditor could theoretically report your account as paid in full, if you were to actually do so, but it has no obligation to make any further reports, because the debt is discharged and uncollectible.

The reality of credit reporting is that the smallest defect in performance (e.g., one late payment) will have a dramatic effect on your credit score (typically a 100+ point drop). A bankruptcy will have an even more dramatic effect. The only actions that will restore your credit score to normal is the expiration of the reporting period, which for an individual debt is seven years from the date of the first late payment, and/or 10 years from the date of filing of the bankruptcy case (15 U.S.C. Section 1681c(a)(1)-(2)).

Consequently, I see no advantage, whatsoever, in voluntarily paying off the debt, because the credit scoring algorithms do not take such voluntary (albeit laudable) conduct into consideration.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Customer: replied 1 year ago.
After reviewing the answer to a legal question I submitted to JustAsk.com, I'm pleased to find that the response to my inquiry is very good and what I anticipated. It's always reassuring to hear it from a legal professional and I'm glad to say that my thoughts on the subject have been confirmed and will be helpful for me going forward. I used this service a few years ago successfully as well and I will be surely recommend this type of service to family or friends who might be in need of legal advice. Great job, thank you Just Ask.com
Expert:  socrateaser replied 1 year ago.

Thanks for your kind words, and for using Justanswer!

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