Wooohoooo!!! I found an 1997 opinion letter (Lovern) stating: "In our view, it is not a reasonable procedure to label an account that has been discharged in bankruptcy as "charged off as bad debt" if the account was open and not charged off when the consumer filed bankruptcy". There is a later opinion letter of 1999 which somewhat contradicts this...but only in the sense that the account MUST in fact actually BE charged off either prior to or after the bk before it can be reported as such. Does anyone know why a company would or wouldn't charge off a debt that had been discharged in bankruptcy previously? I don't know much about how charge offs work, except I thought it had to do with accounting procedures for tax purposes. Thanks! L
I have at least 5 items that show Bad debt charged off/included in bk. they were not charged off prior to the bk. i am disputing this now because the CRA are reporting this incorrectly it should be like my other items that just say included in bk...
My husband's EQ and EX reports are the same way. My question is... how do you know if the account was charged off after the bankrutcy was filed? The McCorkel opinion letter ( http://www.ftc.gov/os/statutes/fcra/mccorkel.htm )seems to support the idea that it is possible for a company to charge off a debt AFTER or even during a bankruptcy proceeding and then subsequently report it as Discharged in BK/Charged off as bad debt even if the account was never late until the bk petition was filed granting the stay. BTW.. I incorrectly stated above that the Lovern opinion letter was from 1997...it was actually 4-24-98. L
Well on mine the bk was in 10/97 and the items on my report say charged off 2/98... Maybe someone else can chime in. At first the CRA reported my items as charged off. when i disputed that they were in fact in my bk they just added the in bk line. so who knows
question here, i was discharged in oct 2001 of my bk 7 so how would look at this account? do i challenge the CRA? should it be listed as included in BK? i did include this in my bk. i was told that this was a secured loan (for a spa). Citifinancial told me that if i filed that they would come and get it. well i still have it should i call them to come and get it? Citifinancial XXXX9543654XXXX INDIVIDUAL ACCOUNT 07/1996 01/2001 Installment CHARGE-OFF $2218 48 $2209 Prior Paying History CHARGED OFF ACCOUNT
Keep it...if they want it they will let you know...lol. If it was included in your bankruptcy, you can dispute it with the CRA. You could send them a copy of your petition and discharge marking out all of the accounts that don't pertain to this account to prove that it was included. I am not sure this is a good idea, but maybe someone else will know if there are reasons not to do this. L
well its been awhile since my discharge. if they wanted it they would of came and got it. wonder how long they have to come and get it if they are.
