Still reporting good

[smallchange]

Filed chap.7 on 9/13/05. Had 341 10/24/05 no asset. Just checked credit report and all unsecured is showing IIB orC.O. and IIB or some other wording indicating bankruptcy. Both secured loans(mortgage and auto) are reporting as good tradelines,no derogatory info or any reference to bk. The auto loan is with my credit union and i also have a credit card and an unsecured loan with them. They report the cc and unsecured loan as IIB but the auto loan is reported as it always has as if i never filed. My mortgage is with a different lender and they have not changed the way they have always reported. This is true for all 3 credit reports. I have not signed any reaffirmation agreements and no creditors showed up at 341 or contacted me. Is it possible these 2 secured debts will continue to be good tradelines since the unsecured have long since been changed to IIB? Has anyone else had this experience? Last day for objections- 12/23/05 TU= 546 EX= 634 EQ= 653

[StaciMM]

Anything is possible...

[AAAArt]

You will want to get rid of any that say "Charged Off" and have that changed to IIB. Two reasons. First IIB is less of a negative than CO, Second, you may be responsible for taxes due on amounts that are CO. You can dispute this w/ the IRS by sending them a copy of your bk petition, but why risk the hassle? Art

[StaciMM]

If it WAS charged off before you filed, then it is accurately reporting. And, it isn't 'charged off' accounts but settled accounts where you can owe taxes. Charged off is simply an accounting term for the creditor-they've moved it from their 'accounts receivable' category to 'bad debt' category.

You will want to get rid of any that say "Charged Off" and have that changed to IIB. Two reasons. First IIB is less of a negative than CO, Second, you may be responsible for taxes due on amounts that are CO. You can dispute this w/ the IRS by sending them a copy of your bk petition, but why risk the hassle? Art

[bkfiler]

i always heard, but never really knew for sure, that the charged off debt was tax collectable. makes sense what you are saying but...

im a guy and art is a guy. you are a girl. im thinking we are right.

[StaciMM]

Have you had charged off accounts before, and if so did you get a tax bill?

You still owe a charged off credit card. Most accounts in collections are 'charged off'. Alot of people think that when the creditor charges off an account, they no longer owe it. It really doesn't change anything for the person w/ the account-other than perhaps no more late fees. (Most CO's even continue charging interest now.)

i always heard, but never really knew for sure, that the charged off debt was tax collectable. makes sense what you are saying but...

im a guy and art is a guy. you are a girl. im thinking we are right.

[bkfiler]

well i understand that, but i settled a card before and didnt get a tax bill

see what i mean. im still thinking that charged off mean you actually owe the irs but i think most times they dont do anything. *shrugs*

i know the logic isnt there all the way cuz they can charge you off in 3 months but remember that when they do that they actually get tax credits on it for that year. this is the other important disquinshing fact of a charge off. maybe now you will see our confusion.

i just convinced my self back to our side.

[StaciMM]

W/ a settlement, it is up to the creditor to file it w/ the IRS. If its a larger amount, they are more likely to do so. If they were to file w/ the IRS on an account that you still owe, they would no longer be able to collect.

[bkfiler]

[StaciMM]

I'm not sure if we're still argueing. What you posted backs up what I've said.

[bkfiler]

hehe, blonde. let me speeeel it out for you. yes im back on your side...

but they do get tax benefits for puttin git into the charge off category. i knew that from before. thats what made me think we were supposed to pay taxes on it. but never got a bill for either method.