What does the BK law provide?

[juliedealer]

What is the name of your state? IN

Are the bankruptcy laws just to protect a person against collection of a debt? or does it erase the debt?

The reason I ask is: is my IIB accounts are shown as "delinquent" (meaning the payment is overdue or late, but there is reasonable expectation of re- payment) on my CR's.

If the debt has been discharged (absolved, erased) how can there be reasonable expectation of payment, therefore allowing the use of the term "delinquent".

Am I missing some basic definitions here?

 

[anadude]

bankruptcy discharges (erases your obligation) dischargable debts.

cr's aren't incredibily accurate, so you just have fill out the little correction form for the cr to let them know the debt was discharged.

 

[juliedealer]

Thank you Anadude

But I was hoping for an informed legal opinion, since it will be the basis for beginning a legal action.

What I'd like to see is where in Title II it says it is erased. Unfortunately being before a judge and saying "well anadude said it is erased" does not have the gravity of siting where in Title II this is stated.

And what I think what you meant was the CRA's are incredibly inaccurate right?

 

[kwalla]

This link should be of use to you. You did not reference what type of bankruptcy you filed. The reference below explains how a Chapter 7 bankruptcy works.

http://www.nolo.com/lawcenter/ency/...F8F/catID/283B9600-ECC3-49ED-9D9A20A3E13F42E0

If your debts have been discharged, they should be presented on your credit report with a zero balance and included in bankruptcy.

Post-bankruptcy it is important to pull your credit report from the three major bureaus (Experian, Trans-Union, Equifax). Errors on your credit report are fairly common and can be corrected by contacting the reporting bureau via CRRR mail. There are sample letters available on www.creditboards.com. You can use those letters to dispute information being reported and have it corrected.

 

[juliedealer]

kwalla

I've been in contact with the CRA's for 5 months, they don't do squat, and it is CMRRR, not CRRR.

Cut and dried, unlesss you sue they do what they want, there is nothing to stop them unless you take them to court.

 

[Ladynred]

Julie,

Try reading this:

http://www4.law.cornell.edu/uscode/11/524.notes.html

Section 524 - Effect of the Discharge. These are Senate notes and it does say:

"In effect, the discharge extinguishes the debt, and creditors may not attempt to avoid that. The language ''whether or not discharge of such debt is waived'' is intended to prevent waiver of discharge of a particular debt from defeating the purposes of this section."

Hopefully that will give you a little fuel. You may need to research a bit further. Are you following the "FUSA" thread on creditboards and Christine Bakers' sites ??

 

[cyana]

Julie,

Try reading this:

http://www4.law.cornell.edu/uscode/11/524.notes.html

Section 524 - Effect of the Discharge. These are Senate notes and it does say:

"In effect, the discharge extinguishes the debt, and creditors may not attempt to avoid that. The language ''whether or not discharge of such debt is waived'' is intended to prevent waiver of discharge of a particular debt from defeating the purposes of this section."

Hopefully that will give you a little fuel. You may need to research a bit further. Are you following the "FUSA" thread on creditboards and Christine Bakers' sites ??

I think that Julie and me and you and all the other folk who also post on www.creditboards.com are looking for is specific verbage that states "all discharged debts must be reported as $0 owed/$0 past due PERIOD and fall off your credit reports at either seven years after filing C7 or seven years from the date of first deliquency whichever event occurs first like other bad debt". What a mouthful! No deliquency, no reporting of balances, no reporting of past due balances. To use Julie's expression, SQUAT. The Bk 7 is the only thing showing and all the tradelines involved say $0 owed/$past due.

Yet even the Senate notes use vague language.

Does "extinguish" just mean "uncollectable or "make zero"? And what the heck does "creditors may not attempt to avoid that" mean - in English, not legalese? Or does it simply mean that creditors must report discharged debt as $0 owed/$0 past due? Rhetorical questions, of course. I read everything too, including the ABI report (paraphrasing) on the risks to buyers of discharged debt. You know I have posted my "stuff" on Christine's site. Go to creditboards.com and see what Julie has done recently.

It's just a shame that sending your bk paperwork to OC's like BankOne/FUSA, B of A and now possibly MBNA does so little good.

<END OF RANT>

 

[Ladynred]

I would agree, 100%. Those creditors are being deliberately vengeful in their refusal to accurately report an account as IIB. I'm going to have to fight these same demons next year.. so I'm with ya.

The only thing I've seen, and you probably have too, is that the history of an IIB account can stay.. much to our chagrin. However, the crap these creditors are pulling goes WAY beyond that.. and is deliberately harming the 'fresh start' by poisoning credit files.

I'll be visiting Christine's site to see what's transpired since I was there last.

 

[juliedealer]

cyana

Thank you for pointing out the senate notes, this is the kind of stuff I am looking for.

Just out of curiosity, how do you define delinquency? I always thought delinquent (in terms of bills) meant "past due", and the prerequisite for claiming the bill was "past due" is that there is a viable debt to begin with. Since BK says in effect there is no longer a viable debt, how can they say it is past due (delinquent)? Is there some other definition I am unaware of?

Ladynred,

I'd be happier than a pig in mud if the OC's reported my history prior to filing for BK, I know that I am probably a rare case but I never paid any of the accounts included in BK late, not even once! But the OC's won't report my past history, instead folks like BOFA think that accurate reporting is that they "sold to another lender" 1 1/2 years after the BK and the account as unrated. Clearly using the reporting agencys to assinate those of us who used federal law to protect us.

I think these types of actions are what is meant by:
"creditors may not attempt to avoid that"

by posting my account as delinquent they are attempting to avoid the fact that there is no debt. By posting that the account has been sold to another lender they are attempting to lead potential lenders there is a viable debt.

Again thank both of you for the notes you pointed out in the Title II law.

<steps up on soap box>

Just an after thought, we live in a society that decided that debtors prison was unacceptable they even went to the extent to create law that said in effect , in certain circumstances, you must allow people to carry on their lives even tho they may have owed you a debt, the quality of the life of the debtor takes precedence over the debt. Are we back at the same point we were when the English came to America? Aren't these the kinds of rights we fought for?


<getting off my soap box>

 

[cyana]

Nodding (snagged from Sassy)

"Just out of curiosity, how do you define delinquency? I always thought delinquent (in terms of bills) meant "past due", and the prerequisite for claiming the bill was "past due" is that there is a viable debt to begin with. Since BK says in effect there is no longer a viable debt, how can they say it is past due (delinquent)? Is there some other definition I am unaware of?"

==========================================
That's certainly what it should mean. Reading the rest of your message, your bk itself caused your deliquencies, but if bk "extinguishes" the debt then there should be no deliquency. I think it's outrageous what BOA has done to you and what FUSA is doing to me and a whole lotta other folks on CB and CN. I'm just waiting for my discharged account to be sold to a CA! Laws protecting consumers who have filed for bk protection have to be enforced.

I can't remember if you used a lawyer for your bk. My lawyer retired a few weeks after I received my discharge. If you did, what does s/he say? I wish Dorene (Indiana bk lawyer) would post more often.

 

[juliedealer]

Cyanna

I did have a lawyer, but he's absolutely useless, seems once he got my money that was the end of service.


I am working with my states attorney generals office, and it appears they do get attention from the bank and the CRA's.


Julie

 

[cyana]

If I don't get an action from FUSA regarding my complaint to the OCC my next action will be to write my state AG too.