credit score goes UP after Chase charge off?

[Moneypenny]

More wierdness around my chase account.

last week they called me up about my bankruptcy filing (about 2 weeks ago) and wanted to know the date of the 341.

then I got a notice from FICO this week that my credit score shot up, from around 520 to 620, because Chase reported my account balance as 0, and sent the account to collections.

FICO might have a long lag in the data, but this seems strange if Chase sold my debt off when they knew I was filing ch7.

Or maybe it was just a mistake to report my balance at 0, or some new tactic, or maybe they wanted to stiff the CA and keep me silent, or maybe they were just being nice.

My credit score was a bit over 700 when I stopped paying over six months ago, gradually went down and then further down after filing ch7 to 520. Now my credit score is already going up, to a not terribly bad 620?

This is wacky.

MMP

[catleg]

My guess is that the balance went to 0 because Chase sold the debt once it was included in BK. You might check the details on your credit report, or the claims register of your BK case on Pacer. It'll probably show the account transferred to a JDB (Portfolio Recovery, BLine, or ECast being the most likely).
All of my Chase accounts have been sold to one of those three.

[Moneypenny]

Yes, like I said, the FICO report says the debt has been sold to a CA. And for some reason that makes my credit score go up?

How can they sell the debt once it goes to bankruptcy? It is worth nothing. Are there companies that really buy these things?

Maybe they buy it for a penny on the dollar in the hopes that some of them come through as 13s? Just curios

[catleg]

Yes, you could win the lottery or get a big inheritance and suddenly be capable of paying on that debt.

In my experience the debt buyers have never come back and filed their own tradeline on my credit report, so when the OC debt balance is reported as 0 then it's the same as if I paid off the debt. It makes me "look better".

The debt is never extinguished unless paid or bankrupted, but you have a defense of SOL once that time expires in your state. Other than that these clowns can sell and resell it indefinitely.

The banks are required to charge off after 6 months of non-payment because, as you can tell from the real estate situation, if they weren't forced to recognize the loss they would simply avoid taking the hit indefinitely.

[Moneypenny]

Thanks. My credit score has been rising, almost back to where it was before filing, and I havent even had the 341 meeting yet.

But I am confused. You say "the debt is never extinguished unless paid or bankrupted," but I have filed bankruptcy, so I dont see how my debt is worth anything. Also, I thought by filing bankruptcy I would be "extinguishing" my debts. Is this just a miscommunication or am I missing something?

Thanks so much!

MMP