Charge off, never late, inagine that.

[jktrading]

We filed on Nov 18. Been planning it out so we have 7 months since the last charge. We have been paying the minimums as well for insurance against possible objections, and to preserve our credit rating as best we can from chargeoffs and late payment notations all over them. BK on a credit report is bad enough afterall. We were lucky enough to see the BK coming and planned ahead.

I just checked our Experian report, and noticed the BK notation, which was expected. I also noticed Citi entered the BK info, as well as a "chargeoff, never late" notation.

I'm going to wait 6 months or so after discharge before tackling any credit reports, but isn't this wrong somehow? Don't they need to wait until the account is late before charging it off?

[justbroke]

I have about 10 of my 40 creditors which were always on-time, never late, perfect payment history. When I filed, they immeidately "charged-off" the accounts.

That's the technical aspect of Bankruptcy. The lenders will have their accounts (your debt) discharged, so they charge it off (on their books).

Overall, it doesn't matter. The BK (Included in Bankruptcy-IIB) is what hurts the most. It will fall off in 7 years.

[PaKettle]

I have about 10 of my 40 creditors which were always on-time, never late, perfect payment history. When I filed, they immeidately "charged-off" the accounts.

That's the technical aspect of Bankruptcy. The lenders will have their accounts (your debt) discharged, so they charge it off (on their books).

Overall, it doesn't matter. The BK (Included in Bankruptcy-IIB) is what hurts the most. It will fall off in 7 years.

I think I disagree. If you want to rebuild credit, it should not say "Charge Off" on your credit report and legally should not say that unless they did indeed charge it off, like when you don't pay for several months and then finally they charge it off. It should not say "Charge off" simply because you filed against an account. I was told that in order for them to include "charge off" on your credit report they have to prove that they did indeed charge it off BEFORE you filed bankruptcy.

In any case, the thing to do is to DISPUTE all such entries other than "Discharged in Ch. 7 Bankruptcy" after about a month after your Ch. 7 goes through. If in any doubt, Dispute, because sometimes stuff completely falls off your credit report just because after a Dispute they don't respond, so you can get some bad stuff off of it by disputing.

[justbroke]

I think I disagree.

We'll agree to disagree. WIth a Included in Bankruptcy... it doesn't matter what the status of the account was prior to the IIB indication. That's what I was writing.

I went and "fixed" my credit report for some things like that, and it didn't make any difference.

An incorrect balance should be corrected as that will affect your score.

I don't see anything in the Bankruptcy Code of the FDCPA which states that a company can't "charge-off" a debt after the debtor has filed for Bankruptcy. What is the creditor to do with money they are never going to get back? On the books, they charge it off.

I think it's all moot anyhow. The Bankruptcy has more weight. The goal should be to make sure all items are IIB and that they read a $0 balance. Not to argue over whether it was "charged-off", "closed by consumer", "closed by credit granter", "sold to third party", or any of those other surplursage indicators.

[ThreadsSnapping]

Several of my accounts went to the charged off notation shortly after I filed and then they slowly started converting over to IIB. They are all now reading IIB. Just give it some time and the issue should correct itself.

I believe the charged off notation is more of an accounting procedure than anything else. Whether through BK, a charge off or they sell it off they have to write it off somehow and they just lump it all under charged off.

TS

[anime-chicka]

This thread made me want to take a peek at my credit report. I have 11 accounts that will be part of the Chapter 7. I'm still paying the 1st and 2nd mortgage as my husband and I want to keep our house.

Six say discharged, even though my 341 is in a couple of weeks. One says petitioned and the other two say charged off. The other two aren't even listed at all because Amex tossed me to the curb right after I stopped paying them. NCO has the debt right now, but they aren't even listed on my reports yet.

I am curious though why Amex and Bank of America are still pulling my report.

[jktrading]

Several of my accounts went to the charged off notation shortly after I filed and then they slowly started converting over to IIB. They are all now reading IIB. Just give it some time and the issue should correct itself.

I believe the charged off notation is more of an accounting procedure than anything else. Whether through BK, a charge off or they sell it off they have to write it off somehow and they just lump it all under charged off.

TS

Yes, agreed that I shouldn't be getting into all this so fast. I don't even have my 341 until late December. I was only interested, and getting a report is so easy and free online.

[jktrading]

We'll agree to disagree. WIth a Included in Bankruptcy... it doesn't matter what the status of the account was prior to the IIB indication. That's what I was writing.

I went and "fixed" my credit report for some things like that, and it didn't make any difference.

An incorrect balance should be corrected as that will affect your score.

I don't see anything in the Bankruptcy Code of the FDCPA which states that a company can't "charge-off" a debt after the debtor has filed for Bankruptcy. What is the creditor to do with money they are never going to get back? On the books, they charge it off.

I think it's all moot anyhow. The Bankruptcy has more weight. The goal should be to make sure all items are IIB and that they read a $0 balance. Not to argue over whether it was "charged-off", "closed by consumer", "closed by credit granter", "sold to third party", or any of those other surplursage indicators.

When June '09 comes around, I'll be disputing every little thing, that's for sure. These things may be deleted, you never know. I think I'll do a couple disputes here and a couple disputes there every couple of months or so and keep at it. Nothing to lose disputing every little negative detail.

[justbroke]

When June '09 comes around, I'll be disputing every little thing, that's for sure. These things may be deleted, you never know. I think I'll do a couple disputes here and a couple disputes there every couple of months or so and keep at it. Nothing to lose disputing every little negative detail.

Absolutely! And, good luck with your deletions!

[Flamingo]

We filed on Nov 18. Been planning it out so we have 7 months since the last charge. We have been paying the minimums as well for insurance against possible objections, and to preserve our credit rating as best we can from chargeoffs and late payment notations all over them. BK on a credit report is bad enough afterall. We were lucky enough to see the BK coming and planned ahead.

I just checked our Experian report, and noticed the BK notation, which was expected. I also noticed Citi entered the BK info, as well as a "chargeoff, never late" notation.

I'm going to wait 6 months or so after discharge before tackling any credit reports, but isn't this wrong somehow? Don't they need to wait until the account is late before charging it off?

JKTrading...I think everyone goes through this. That is why it is best not to do anything to your credit reports at the time of filing because things will get changed as time marches on. Chill during this time and 3 or so months after discharge, get all your reports again and then tackle. You will see some of the information may have remained the same and some changed. It may take some time to get it all straightened out but waiting until after discharge makes the most sense for anyone.

[AngelinaCatHub]

I had two accounts I used after my bk was filed. I intended to pay them as they were very small balances. I went to Lowes to make a 50 buck payment and they found my account zero balance zero credit. I went to Radio Shack to pay 50 bucks and they could not find my account at all. It seems both accounts were tied to Citi and I had an AT&T Universal card of 33K. Owned by Citi. So I suppose they cut off their nose to spite their face as it was a pleasent present to me. I care less about a credit score. I'm going cash. 'Hub