ch7 discharged, one account shows as 'Charge Off' on my credit report,what should ido

[luckynucky]

What is the name of your state?
I was discharged of ch7 last month. I recently checked my credit report from one bureau and found one account being reported as charge off. How can I dispute this and what steps should I take? thanks

 

[ihatearizona]

You're very lucky to only have one account showing incorrect. My BK was discharged in Oct and about 9 of my accounts are not showing IIB!

Dispute the item with the credit reporting agency. You can either do this
on-line or through certified mail.

 

[Ladynred]

If the account was a charge-off BEFORE you filed for bankruptcy, then it can remain on your credit reports that way is it would be accurate as of your filing date. However, it must also say 'included in bankruptcy' and show a ZERO balance. If it was not a charge-off before you filed, then they are in violation of the FCRA for reporting inaccurate information and the FDCPA for misrepresenting the legal status of the debt.

Cleaning up your reports post-dishcarge is imperative, these creditors get it wrong all too often and you must hold their feet to the fire by disputing with the bureaus, it is your right to do so. If your discharge is recent, give it at least 90 days and then start the clean-up process, not all creditors report monthly so it can take a while for all of them to show up on your reports.

 

[luckynucky]

This account was current the till the day I filed ch7. The creditor has charged it off after I filed ch7. Should I wait 90 days to dispute this or its' better to start disputing any errors from now?

 

[ihatearizona]

It's a matter of personal preference. As LNR said some items are only updated by the creditors quarterly so they may not have had a chance to update your tradeline yet. But, this doesn't mean that they will ever get around to doing it or that if it is updated that it is reported correctly through the CRA.

I kind of took the stance that the creditors were notified of the BK when I filed and had opportunity to update my report anytime after that. Since generally 3-4 months pass from the file date to the discharge date they had an opportunity to include IIB on my report during that time. Some did, others did not. And, some reported correctly on my DH's reports while my reports did not show IIB (makes no sense).

It all depends on how fast you need your credit report to correctly reflect your status.

 

[Ladynred]

Reporting as a charge-off AFTER your BK filing on an account that was current before you filed is definitely a no-no per the FTC. Dispute it and be prepared to show that the account WAS current prior to filing BK.

 

[cyana24]

If your account was with First USA Bank/Bank One you can dispute until the cows come home because their policy is to report accounts included in bk 7 as "charge off" even if you were current at the time you filed.

 

[Ladynred]

Yep, and they are as wrong as they can be but no class-action to stop them has happened yet.

 

[cyana24]

Yep, and they are as wrong as they can be but no class-action to stop them has happened yet.

Agreed. Guess Brett Weiss fizzled.

 

[jwdantsr]

Do the same rules apply here?

How about an account that was current and even paid off and the creditor posts it as "Included in Bankruptcy?" Even an account from a creditor that had been closed for several years shows as "Included in Bankruptcy."

 

[ihatearizona]

How about an account that was current and even paid off and the creditor posts it as "Included in Bankruptcy?" Even an account from a creditor that had been closed for several years shows as "Included in Bankruptcy."

This account shouldn't be showing this way. Dispute it with the CRA's.