Benefiting Me - Will This Result In Negative On My Report?
Q: I had an automobile loan prior to filing bankruptcy. At the hearing the Judge denied the creditors motion to reaffirm the auto loan since I had possession of the vehicle and I was not delinquent in payment. In my credit report now after the BK, the loan sporadically shows up here and there. It either shows as included in bankruptcy or doesn't show at all. I have been on a 1 year letter writing campaign to all the bureaus but it requires almost an act of congress to deal with those folks. So my question is this, since the loan is not benefiting me by listing on my report as being a current loan and in good standing should I: - Let the auto loan people come and take the van since it is not benefiting me - will this result in negative on my report?. - DO lenders only look as ISAAC score when considering a loan or do they take into consideration other accounts that are not listed?.
A: Unfortunately there is little uniformity between Bankruptcy Courts in different districts of the Country. It is hard to answer your question thoroughly without knowing what Bankruptcy Court you filed with. Until recently many courts would, as a matter of course, deny reaffirmations such as yours. That has greatly changed due to case law which now supports the right of a secured creditor to obtain a reaffirmation agreement in situations such as yours. I do now know when you filed but if you were filing now the result might be different. As to your credit record. If the credit report is wrong your legal right is to send a written notice correcting the error. The reporting agency must correct the evidence upon receipt of their error. If they do not they are in violation of the credit reporting act. This will only be helpful if the information in the report is inaccurate. Technically, even though you are paying the debt and while the case is open the creditor could not foreclose on the car loan without leave of the Court (which would probably not be granted unless you fell behind in your payments or did damage to the car which brought the value down significantly)