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Does updating collection accounts to a bankruptcy lower your credit score?
Wiki User
∙ 12y ago
The fact of filing bankruptcy is already going to lower your credit score, and the point of bankruptcy, part of it anyway, is to resolve unpayable debt such as collection accounts. It is in your best interest to add the collection accounts to your bankruptcy, but if you consult your BK attorney, he is likely to advise you of this.
The bankruptcy is the first next step in repairing your credit and improving your credit score.
Wiki User
∙ 12y ago
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Will your credit report only show a discharged bankruptcy or will it also show all the accounts included in the bankruptcy?
Your credit report will show both the accounts (which were listed first) and the legal entry of the bankruptcy in the public records portion of your credit report. Once a bankruptcy is discharged, credit grantors should update the account listing (called a trade line) and make sure that no derogatory information is showing (like past due balance or collection account notations) EXCEPT for the "included in bankruptcy" statement. This is what SHOULD happen. It's up to you to follow up and make sure that your credit report looks like it is supposed to after a bankruptcy.
How do collection accounts affect your credit score?
== == Collection account are 20% of the total credit score module.
Who do i have to contact if i have to accounts in collection i was not aware of?
If you have accounts in collection that you were not aware of, you need to contact the collection company. You can also contact the credit bureaus for more information.
The accounts that you discharged in bankruptcy should no longer show on your credit report after 1 year?
The accounts can remain up to seven years after the last payment was made, but will show a zero balance due to a bankruptcy filing.
How long does it take for the accounts to come off your credit report after being discharged from bankruptcy chapter seven?
Never
Will your credit report only show a discharged bankruptcy or will it also show all the accounts included in the bankruptcy?
Your credit report will show both the accounts (which were listed first) and the legal entry of the bankruptcy in the public records portion of your credit report. Once a bankruptcy is discharged, credit grantors should update the account listing (called a trade line) and make sure that no derogatory information is showing (like past due balance or collection account notations) EXCEPT for the "included in bankruptcy" statement. This is what SHOULD happen. It's up to you to follow up and make sure that your credit report looks like it is supposed to after a bankruptcy.
How do collection accounts affect your credit score?
== == Collection account are 20% of the total credit score module.
Who do i have to contact if i have to accounts in collection i was not aware of?
If you have accounts in collection that you were not aware of, you need to contact the collection company. You can also contact the credit bureaus for more information.
Do you have to pay collection accounts dropped off credit reports?
no you do not
If you file bankruptcy but still have some credit cards with a zero balance on them will you still be able to keep them or will they automatically be closed?
If you have credit accounts in good standing then do not include them in your bankruptcy.
How long do medical collections that has a status of Chapter 7 stay on credit report?
Included in bankruptcy accounts and collection items both stay on your report for seven years maximun per the fair credit reporting act. The answer is 7 years.
If you get married how will your credit reports and bankruptcy affect your future spouse's perfect credit?
Your credit follows you individually. If you have joint accounts then they appear on both of your credit reports.
Do you still owe your debt if the credit card company went bankrupt?
Yes. Unpaid accounts with a company that has filed for bankruptcy are still collectible. Outstanding accounts become part of the bankruptcy proceedings.
Where do you pay collection accounts that are reported on your credit report when the company is out of business or no longer handles the account that was reported for collection?
You pay the collection agency.
The accounts that you discharged in bankruptcy should no longer show on your credit report after 1 year?
The accounts can remain up to seven years after the last payment was made, but will show a zero balance due to a bankruptcy filing.
Which hurts your credit worse bankruptcy or late payments?
Late payment will drive your credit score into the ground rapidly. Many people question filing a Bankruptcy even though their credit is shot through late payments on mortgages and other bills. Filing Bankruptcy put all collection activity on hold and your accounts show current and up to date as long as you make your payments on time. Most people are surprised tofine their credit in much better shape after a BK than before with a much higher credit score Late payments can always be corrected, and this will be reflected on your credit file. Bankruptcy, however, will stay on your credit file for six years.
Does filing bankruptcy remove bad marks from your credit report?
No. What will happen is all the defaulted accounts listed in the bankruptcy will be marked as such.."included in bankruptcy". The credit history, late payments, judgments, etc. will remain the same. In addition to the scenario in the above answer: The bankruptcy filing itself will be listed in the "public records" portion of your credit report. The disposition needs to be listed also (the discharge). The "bad marks" (i.e., the accounts) will show on your credit for 7 years. The bankruptcy listing will show for 7 years for a completed and discharged Chapter 13 bankruptcy and 10 years for a discharged Chapter 7.
