What Happens To Charge Offs

[shortyg]

I'm looking at filing chapter 7 and have a appointment with a bankruptcy attorney on monday but I had a couple of questions I hope someone could answer.

I have a few charge off accounts on my credit report that are reporting a zero balance. (I never paid them but I heard they zero it out when they sell it to a collection agency- is that right?) Can I include them in bankruptcy- and if I can how does it appear on the report after? (Does is just say "included in bankruptcy" or does the charge off still appear)

[SMinGA]

Yes you can include them.

The original creditor normally puts a $0 balance when they sell it, because at that point you owe the debt buyer. List the original creditor and collection agencies/debt buyers - because its sometimes hard to know if you're dealing with a CA (working on behalf of the original creditor) or a debt buyer. Listing both helps to make sure all bases are covered.

Charged off accounts can still be included in bankruptcy. I think it is mostly just an accounting term for the original creditor.

[NoMoreCards]

All bad information on your credit report remain after filing BK. So if you are late on payments and this is reflected on your BK, it will still show you were late although the account will also show IIB.

Charge-offs I believe will work the same way. Although it should show a IIB, it will probably also show Charge off as well.

I would like to be wrong, but don't believe I am.

[OhioFiler]

You have to include those accounts. Just because the debt was written off does not mean it was forgiven.