Hello: I'm new here, so excuse my ignorance. My husband was previously married. Prior to his divorce, he filed for bankruptcy, Chapter 13. He had a car loan with a credit union. For some reason, the $24,000 loan was reduced to $10,000 after getting a report showing the blue book value was actually $10,000. I'm not sure who got the report, but it appears the credit union agreed to lower the amount. He made all payments and the Chapter 13 account was closed. Now, 9 years later, the Credit union is showing the $14,000 write off on his credit report. Is there anything we can do to remove that $14,000 write off from his credit report? We tried calling the credit union and disputing it, but they refuse to remove it, saying he still owes them money. He received the pink slip and has since sold the car, so I'm not sure why or how he still owes them money. Help!
It sounds like the car loan was included in the CH13 Bk. As is usually the case he was "upside down" on this loan, meaning that he owed far more than the car was worth. From what you say in your post it appears that the BK court was aware of this and required him to pay only the fair market value of the car at the time. The credit union must have been aware of this since he got a clear title and sold the car. That is probably what happened...after 9 years this debt is probably beyond the SOL to collect even if it was valid Perhaps the his BK Attorney at the time can explain this, or the BK papers filed in court can clear this up from what you wrote it appears the credit union is trying to collect on an account that was included in the bankruptcy, a definate violation!
