Charge-off versus Bankruptcy

Discussion in 'Credit Talk' started by heather, Jul 24, 2001.

  1. heather

    heather Well-Known Member

    I have several accounts that were included in bankruptcy that show on my credit report as a regular charge-off, no mention of banruptcy. Would there be any advantage in contacting the bureaus and having them updated as included? Would it raise my score any, or would it stay the same? I do not think there is any hope that any of these can be removed, they are valid debts. If a bankruptcy notation would improve my score a little, I would go for it.
  2. Mirage

    Mirage Well-Known Member

    Heather: here's my take on the situation. Having each account listed as incl. in your bk-13 is better than listed as charged-off.

    It shows that you have paid the creditor accordingly to your payment plan. I think someone here on this board reported that this will raise your score.

    Also by listing your account as incld in bk will prevent CAs from calling you on trying to collect as now you have been discharged from the debt.

    I had over 15 bad accounts on my TU and when I started to correct my TU report, the incl in bk ones started to drop off my report. So my report now shows only three bad accounts listed as charged-off plus my bk-13 listing.

    I am spending the rest of the summer in trying to get those reclassified correctly. It's been tough as TU keeps coming back as verfied. At this point I may have to file a lawsuit against them as my bk-13 papers clearly show that these were included in my bk-13 repayment plan.

    On a side note- TU has my bk-13 listed as dismissed, as oppose to being actually discharged. Again TU keeps coming back stating it is verfied as dismissed.

    Hope this helps.

    Best regards,
  3. tmitchell

    tmitchell Well-Known Member

    Getting these accounts reclassified as "incl in BK" is easy. You simply need to send a copy of your schedule and discharge to the CRA and ask to have them updated.

    As for having an account changed to incl in BK, it does raise your score because it no longer is classified as a charge-off.

  4. heather

    heather Well-Known Member

    I would think that one would be just as bad as the other, in regards to score. Mine was a Chapter 7. I was hoping to get several of these deleted because they had much incorrect info, but many are coming back as verified. Will get on it and start disputing as included in bankruptcy and see if this improves the score. I did have a car note that was showing as a repossession that I did manage to get updated to banruptcy, I can't say if and by how much it affected my score, I had several accounts and inquires deleted at the same time.

    The real test will be with the old Capital One charge-off. Equifax is my best report, two civil judgments, one collection, cap one charge off, and two good accounts. My score on there is about 580, with cap one agreeing to take payment on the charge-off and reopening the account to show as a current, maybe it will raise my score a whole bunch? I hope so, this is depressing. Although I cannot complain, I am up from a score of 495 in January.

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