?s: creditors reporting BK during proceedings

[boinga]

I'm in a Ch 7, about a week to go before 341.

In looking at my credit report, I've noticed that all but one creditor has reported that the account is part of Ch 7 bankruptcy, and the balance owed now says "$0".

Coupla questions:

1) Is there any significance to the zero balance? Does this mean they are writing it off (i.e., no objections) or is it just standard procedure while the BK is still in progress?

2) One creditor with an account of about $15K has not reported the BK and still shows the balance owed, plus a past due amount. This is the creditor that really has the only (minor) grounds for an objection, in my atty's opinion. Is there any significance to them not reporting the BK yet and/or zeroing the balance? Or are some just slow?

3) Some accounts that have been BK'd show a status of "Closed (paid)" with the BK in the notes section. Others show a status of "Derogatory". Again, any significance to the difference? Will one have a more negative effect on my credit rating than the other?

thanks!

[BassBoy]

I'm in a Ch 7, about a week to go before 341.

In looking at my credit report, I've noticed that all but one creditor has reported that the account is part of Ch 7 bankruptcy, and the balance owed now says "$0".

Coupla questions:

1) Is there any significance to the zero balance? Does this mean they are writing it off (i.e., no objections) or is it just standard procedure while the BK is still in progress?

The $0 balance is pretty much standard.

2) One creditor with an account of about $15K has not reported the BK and still shows the balance owed, plus a past due amount. This is the creditor that really has the only (minor) grounds for an objection, in my atty's opinion. Is there any significance to them not reporting the BK yet and/or zeroing the balance? Or are some just slow?

It can some creditors some time to report the BK and/or $0 balance. It couldn't hurt to dispute this on your credit report(s). No harm in doing the credit clean-up sooner than later.

3) Some accounts that have been BK'd show a status of "Closed (paid)" with the BK in the notes section. Others show a status of "Derogatory". Again, any significance to the difference? Will one have a more negative effect on my credit rating than the other?

Derogatories may still show on your credit report if the derogatories occured before the date of filing.

[chpxiii]

1) Is there any significance to the zero balance? Does this mean they are writing it off (i.e., no objections) or is it just standard procedure while the BK is still in progress?

Actually yes. To show a balance owed on a credit report is considered collection activity. Collection activity by a creditor while in bankruptcy is a violation of the automatic stay bankruptcy afords the debtor. Therefore, if there is an amount showing as owed in a credit report while a debtor is in bankruptcy is considered a violation of the automatic stay. To set the amount owed to $0 shows that collection activity has stopped.

2) One creditor with an account of about $15K has not reported the BK and still shows the balance owed, plus a past due amount. This is the creditor that really has the only (minor) grounds for an objection, in my atty's opinion. Is there any significance to them not reporting the BK yet and/or zeroing the balance? Or are some just slow?

Could be slow. But I would write them a stern letter, certified mail return receipt requested, informing them they need to correct their reporting as they are in violation of the automatic stay of bankruptcy. The amount owed should say $0, credit amount should say $0, and it show is "IIB" or "Included in Bankruptcy" or something to that affect. See my answer to #1.

3) Some accounts that have been BK'd show a status of "Closed (paid)" with the BK in the notes section. Others show a status of "Derogatory". Again, any significance to the difference? Will one have a more negative effect on my credit rating than the other?

thanks!

Status really should say "IIB" or "Included in Bankruptcy" or some such nomenclature to say that it is included in a bankruptcy filing.

[boinga]

Thanks for the info.

I had no late payments before filing, so there should be no "derogatories" hanging over from then.

Should I contact the reporting agencies about the "derogatory" status on a couple of the accounts? (they should be IIB) Or should I contact the creditors directly?

I will contact CitiB about the balance showing on their account. I was getting calls from an 866 number I didn't recognize, almost daily for about 3 weeks after filing. I do not answer my cell if I don't recognize the number, and they never left a message. I suspect it was CB. USAA was late to get theirs on record as well, but as soon as I talked to them it was done immediately. (They left messages.)

[LadynRed]

Always, always begin your disputes at the CRA's, that's the proper way to make sure you protect ALL of your rights under FACTA.

You need to give it at least 3 months from filing to see that creditors are reporting correctly, then check again after discharge. Some of them may be reporting correctly at first, and then they'll change later - they like to play dirty tricks and some creditors are just plain stooopid.

[BKcrazy]

Thanks for the info.

I had no late payments before filing, so there should be no "derogatories" hanging over from then.

Should I contact the reporting agencies about the "derogatory" status on a couple of the accounts? (they should be IIB) Or should I contact the creditors directly?

I will contact CitiB about the balance showing on their account. I was getting calls from an 866 number I didn't recognize, almost daily for about 3 weeks after filing. I do not answer my cell if I don't recognize the number, and they never left a message. I suspect it was CB. USAA was late to get theirs on record as well, but as soon as I talked to them it was done immediately. (They left messages.)

USAA left me alone once I told them over the phone that I filed. I haven't even checked a credit report. I think I'm scared.