what is a charge off?

[debtor36K]

After I filed bankruptcy most of my credit cards reported on my credit as included or discharged in chap 7 bankruptcy. Well there is one card, citi, that reported like this :

Account Type Credit Card - Revolving Terms
Balance $5,292.00
Date Opened 5/1/2007

Account Status Closed
Mo. Payment
Close Account Details Past Due $177.00
Payment Status Charge-off
High Balance
Limit $5,700.00
Terms Revolving
Comments Credit line closed-grantor request-reported by subscriber

I was current on all my cards when I filed so how can they claim an amount past due?? What exactly is a charge off?

[debtor36K]

What ever it is it has lowered my score from 690 to 629!

[debtor36K]

I just looked into my last statement and the payment was not due until 08/04/08 and I filed bankruptcy on 07/22 so can they claim the payment is late and report a charge off?? I don't get it

[JRScott]

It should read IIB. It should not show as being late.

Dispute it with the reporting agency.

[debtor36K]

what is IIB?

[JRScott]

Included in Bankruptcy.

A charge off is required at 180 days past due by regulation. It is where they sell it to an outside creditor generally.

[debtor36K]

well, I was completely current! The next payment was aug 04 and I filed july 22

[AngelinaCat]

Since it was included in the BK, when the creditor was notified, then they automatically wrote it off. We actually had a small Radio Shack account that we opened AFTER we filed, but the parent company owns another account that we included in our BK, and the parent company charged both of them off.

[debtor36K]

but as a charge off the debt is still oweing and due. They will still attempt to collect, correct?

[debtor36K]

I'm still confused! One person says they shouldn't have listed it as a charge off and another says yeah, it's ok they can do that. Which one is correct?

[No Gravy]

I'm still confused! One person says they shouldn't have listed it as a charge off and another says yeah, it's ok they can do that. Which one is correct?

Go online to each of the credit bureaus and dispute it. They have a place to check for "included in bankruptcy." Normally that's all you need to do and it will be corrected.

[ThreadsSnapping]

I had a few listed like that shortly after we filed. They are slowly converting over to the IIB notation. Since you just filed I would wait a bit and see what happens. It seems most have gone to IIB after our 341 and some may be waiting until after the discharge. I'm planning on waiting until after our discharge to start disputing any wrong info. I wouldn't worry about it yet.

TS

[debtor36K]

Thanks. I started filing a dispute with experian but then decided to wait a bit before doing it.

[Cali]

All debts included in your BK, should say IIBK and zero balance. If you were late before filing, they can still report as being late up until you file. If they charged it off before you filed, it can still report as a Chargeoff.

[beachymama]

Will a bankruptcy make the lien holder who charged off the loan also RELEASE THE LIEN since the debt will never be paid, just discharged in the bankruptcy???