Dec
7
Can credit reporting agencies report a consumer late if they are making Chapter 13 payments on time?
Filed Under Credit
Kaybee asked:
Our mortgage company has reported our payments as late even though the payments were made on time to the State Bankruptcy Court. These payments to the court included our monthIy mortgage. Is this legal?
ELIAS
Our mortgage company has reported our payments as late even though the payments were made on time to the State Bankruptcy Court. These payments to the court included our monthIy mortgage. Is this legal?
ELIAS
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2 Responses to “Can credit reporting agencies report a consumer late if they are making Chapter 13 payments on time?”
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No it is not, you need to get in touch with your trustee/ bankruptcy aty- if the pmts are not late, and they are included in your bankruptcy, they legally cannot be reported to you credit.
email me w/ questions
Yes. There are a number of reasons they may still be showing you late. It’s possible that you owned arrearages that have been added onto the balance of your loan. OR They may have agreed to accept lower payments than required by the Deed and Note you signed. OR The BK Trustee may not be forwarding your payments in a timely manner. The Trustee must also wait until there is sufficient funds in your BK account to forward a pmt.
My suggestion is to keep copies of all cancelled checks you make to the BK Trustee. You can then provide that documentation to a prospective lender as proof you are in compliance. My last suggestion is DON’T BE LATE on your payments to the BK Trustee as a new lender will see that payment history as the beginning of re-established credit.
(i.e…a lender may also request a payment history directly from the BK Trustee. In my experience that is easier for a lender to properly assess your progress. Hope some of this helps).