Charge-Off Notation

[Cronin]

I have a question regarding an account that was included in my Chapter 7 petition. My credit union credit card was included in the March 30th bankruptcy filing but I just noticed that on April 24th they changed the status to “charge-off” on the account. Is this anything I should be concerned about? I‘m worried the debt might be transferred to a collection agency after discharge.

[shipo]

I believe there was an almost identical post here within the last week or two; if I recall correctly, the answer is, "It's normal."

I know in the case of my Chapter 13, well over half my creditors charged off the debt at some point between when I filed and when the discharge was finalized; they are all prohibited from coming after me for the money, and said prohibition carries some teeth in that if they try it, the law provides for them to be sued and when the lose they will need to pay damages.

Long story short, unless your creditors can show proof of fraud on your part, you're good to go.

[justbroke]

Yes, this is normal especially if you had a balance when you filed. The creditor must stop any collection on the account and will usually follow their normal "bookkeeping" (accounting) practice for charging off an account. The account may also be sold to a so-called junk debt buyer (JDB). JDBs buy these accounts for several cents on the dollar, hoping that some of these bankruptcies turn into asset cases, converted to a Chapter 13, and/or dismissed.

Nothing to worry about.

[Cronin]

Sorry my mistake. I should have searched the forums before posting. Thank you both for your quick responses!