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Disputing IIB if you stopped paying before filing.

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    Disputing IIB if you stopped paying before filing.

    One thing to look at if you stopped paying your credit cards before your filing of Chapter 7. Especially if you stopped paying them a while before filing.

    Most likely those accounts went to transfer/sold status before you filed. Now hopefully the OC sold the debt and didn't charge-off it.

    My friend had 4 out of his 7 cards that he dischaged go to transfer/sold statust before he filed.

    The credit card could not report the card has IIB with a derogatory, instead they have to report it has 'transfer/sold with 0 balance'. THere is no derogatory notation on the report. The credit card companies were originally reporting it has IIB.

    If you have a number of cards you stopped paying on 6-9 months before filing it would be worth a call to the OC to ask them when or if the debt sold. then inform them that it's a violation of sec. 524 of the automatic stay to report it has IIB if it was sold before the filing date.

    You may get some derogatories deleted.

    #2
    Thanks for the info. I have a couple cards to which this situation applies.
    09/12/07 - filed chapter 7 10/17/07 - 341 meeting
    12/27/07 - discharged!
    scores at filing TU 508 EX 517 EQ 518 [ouch]
    scores as of 8/08 - TU 567 EX 546 EQ 590

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      #3
      Interesting information. Can you cite any specific legal source that actually says that reporting transferred accounts as IIB is a violation of the Automatic Stay?

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        #4
        I'll have to remember this... almost all of my cards have been sold by now! Thanks!
        (X) - Filed Chap 7 - 11.14.2007
        (X) - Free and Clear - 2.22.2008
        PreBK Scores - 467/428/434 (11/22/2007)
        PostBK Scores - 571/604/583 (3/15/2008) - Rebuilding Begins!

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