I just spoke with a bankruptcy judge about the fact that creditors are reporting bankruptcy accounts as charge off and he said that it is a violation of bankruptcy laws Under legal statue 362 the debtor is given an automatic stay (court ordered injuction) which prevents a creditor from any form of collection or harassment as of the day of filing. The injuction becomes PERMENTANT on discharge. So they can only report you filed bk not that it is charged off. Under the code a person is allowed to sue the creditor if they violate the law.
-
-
charge off
Thats good to know I have a few of those I have been trying to get off my credit report.. Do you Know anything about them showing Derroitory by chance? -
If the lates are AFTER you filed bankruptcy it is a violation (collection effort, assessment of account, etc).
If the credit agency helps a creditor report an item as a charge off they assisting in the violation of the Bankruptcy code's automatic stay.
But the bankruptcy code itself prevents even the "administrative assessment" of an account which is directed toward and against the debtor which effectively means the "assessing" an account as a charge off and reporting it to the credit agency. Here is the exact code:
(1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title;
The FTC has a letter in their files that states that it is their opinon that a charge off is a violation- http://www.ftc.gov/os/statutes/fcra/lovern51.htm
Be careful, because they also slightly backtracK in
Comment
Comment