This only applies to charge-off reported AFTER the date of filing bankruptcy.
If a creditor reports an item as a charge-off (or as lates) when the account was current as of the date of filing it could be considered a violation of the bankrutpcy code's automatic stay and you can file an adversary preceeding against the creditor (normally at no cost) in your bankruptcy case.
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 and can also be held liable.
The bankruptcy code itself prevents even the "administrative assessment" of an account when it is an directed and taken 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
If a creditor reports an item as a charge-off (or as lates) when the account was current as of the date of filing it could be considered a violation of the bankrutpcy code's automatic stay and you can file an adversary preceeding against the creditor (normally at no cost) in your bankruptcy case.
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 and can also be held liable.
The bankruptcy code itself prevents even the "administrative assessment" of an account when it is an directed and taken 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
