I got a copy of my Experian report yesterday, and it showed several of my debts being charged off about six months after they were discharged in bankrupty. A couple list in the details that they were included in BK, but others don't even mention the Chapter 7. (Luckily, most of my discharged debts list right up top that they were included in BK.) One debt that lists as included in bankrupty on TransUnion lists as charged off (seven months after discharge) on Experian. Another lists as charged off for almost four times what I owed. Can creditors charge off debts after they have been discharged? Isn't this a bad way for discharged debts to be listed on my credit report?
RE: can discharged debts be ch No. They should be reported as discharged in the BK. Having them appear as a charge-off makes it appear that the debt is still owed. I'd contact the CRAs and make them aware that the debt was discharged.
RE: can discharged debts be ch You may want to leave well enough alone ... My understanding of how the ammended FCRA works is that ... A notation that a debt was included in BK (chap 7) will stay for 10 years FROM THE DATE OF DISCHARGE (this notation is considered a piece of the BK filing, effectively linking the account to the public record) and effectively adding 3+ years to the length that a debt can otherwise be reported A notation that the debt was charged off will force the entry to fall off 7 years from date of first delinquency.
Not so sure about that.. I filed chapter 7 in 1996. Two of the credit included in my bk were reporting as "included in bankruptcy" and had last dates of activity as 10/93 and 12/93. The one from 10/93 is no longer being reported on my Equifax and Experian reports (I haven't rec'd TU yet). It's also my understand that debts marked "included in bk" are somewhat less damaging than a charge off because it shows potential creditors that you no longer owe the debt.
RE: can discharged debts be ch No, charged off won't do. I hope to buy a house in a couple of years, and chargeoffs kill you. Mortgage bankers hate chargeoffs but will live with a Chapter 7 if you've been good since then. Heck, I've already been denied a secured card because debts were listed as past due instead of included in BK.
RE: can discharged debts be ch You're absolutely correct - unpaid (unsettled) chargeoffs are instant death for mortgages - you have to pay them off, vs. BK which they will consider the debt as settled. I poked around and wasn't able to get a definitive on the 10 years for debts with BK notation ... any BK lawyers out there who can verify it? Good luck- MJ
RE: can discharged debts be ch According to what's listed at the top of one of my credit reports, it appears only the BK is listed for 10 years. It seems the discharged accounts drop after seven.
RE: can discharged debts be ch That's happening with my credit reports, too. One of the two credit cards included in my BK dropped off last month.
