IBroke always has such wonderful information that I am turning this response into a blog, as I believe it will be helpful to many. Thanks IBroke for your great advise!


Originally posted by IBroke View Post
That might be quite possible.



It might not be inaccurate - but it's simply not allowed. Any kind of credit reporting on loans that were IIB and not reaffirmed must be stopped when the borrower files. Balance must be set to $0 and the account must read "included in bankruptcy". The lender's actions (required or not) after the BK filing-date mustn't have any influence on credit reporting. Let's say the borrower was always current prior to filing. How are they going to report that account? No missed payments, $0 balance, IIB AND foreclosure?

Let's say you have a car-loan and the lender argues that they have to "book" the surrendering during BK as "charge-off" or any other transaction, I highly doubt they could list that as well although it would be "accurate". And what about the CCs and personal loans?