Creditor reported account as charged off after we filed for bankruptcy

[unearthed]

My debt was discharged through chapter 13 in the fall of 2011. I was checking my credit record to day (it's been too long) and discovered that a creditor began reporting my debt as charged off roughly three months after we'd begun our chapter 13 payments. In other words, we filed for bankruptcy in 10/08, began making payments to the trustee in November 11/08, but our plan was not confirmed until 3/09. The creditor (a local bank) was certainly notified well-before all this (even had phone calls asking us not to file as it would "ruin our credit"), but listed it as charged off in 2/09.

Can they do this?

[df04527]

Yes. Charged off is an accounting term and just means the creditor has charged the debt off their books.

[Floridagail]

If it was charged off b4 you filed bankruptcy, it will stay, If after they will have to fix that. I would dispute it. It will effect when it will fall off your credit report. I disputed lots of stuff on my report. It all got fixed.

I had been quite upset as I had reaffirmed my car due to being only the cosigner and they would go after my Hubby. It showed up as negative IIB. I always paid on time and never late. I paid it off. Then it died, it had electrical problems bad. Anyway, I disputed it with all 3 CRAs and they did remove it totally. I had wanted it changed to positive reporting.

[unearthed]

If it was charged off b4 you filed bankruptcy, it will stay, If after they will have to fix that. I would dispute it. It will effect when it will fall off your credit report. I disputed lots of stuff on my report. It all got fixed.

I had been quite upset as I had reaffirmed my car due to being only the cosigner and they would go after my Hubby. It showed up as negative IIB. I always paid on time and never late. I paid it off. Then it died, it had electrical problems bad. Anyway, I disputed it with all 3 CRAs and they did remove it totally. I had wanted it changed to positive reporting.

Thank you. It showed up as charged--off after we filed, but before it was confirmed, which was why I asked. I know the woman who oversees accounts at this bank (credit union) and I suspect she didn't know the difference between a charge-off used for book-keeping and a charge-off reported to credit bureaus.

I have disputed it and will be curious to see how it pans out.

[Floridagail]

I got everything I disputed fixed. Sometimes it took more than one dispute. I just keep disputing every few months.

[budgetgal]

Just realized this happened to me too on two accounts. I had been current and filed in June '11. They reported a 30 day late July and then charge off in both Aug and September. I was discharged in October of '11. All other accounts just reported closed and discharged. I love Macy's, they said discharged in Chapter 7/never late. I'll get to work disputing.

[budgetgal]

I already got 3 out of 4 fixed with just one dispute. One is still pending. Hopefully it will be fixed soon.