what is a charge off?

[beachymama]

I think you are talking about secured credit. If so the debit is still secured by the asset.

Well, the HELOC is on a home, but the value, thus the security is no longer there. They are in the second position, behind the first mortgage holder. The reason they charged off the account was because there was no equity to foreclose on.

So, I was wondering if bankruptcy or ONLY FORECLOSURE? is the only way to get this lien off the home so that I can sell it in a short sale? or move back into it and try to reaffirm the first mortgage, but remove any future judgements by the HELOC company including the lien.

Thank you!

[TEW]

Will a bankruptcy make the lien holder who charged off the loan also RELEASE THE LIEN since the debt will never be paid, just discharged in the bankruptcy???

I think you are talking about secured credit. If so the debit is still secured by the asset.

[beachymama]

Will a bankruptcy make the lien holder who charged off the loan also RELEASE THE LIEN since the debt will never be paid, just discharged in the bankruptcy???

[Cali]

All debts included in your BK, should say IIBK and zero balance. If you were late before filing, they can still report as being late up until you file. If they charged it off before you filed, it can still report as a Chargeoff.

[debtor36K]

Thanks. I started filing a dispute with experian but then decided to wait a bit before doing it.

[ThreadsSnapping]

I had a few listed like that shortly after we filed. They are slowly converting over to the IIB notation. Since you just filed I would wait a bit and see what happens. It seems most have gone to IIB after our 341 and some may be waiting until after the discharge. I'm planning on waiting until after our discharge to start disputing any wrong info. I wouldn't worry about it yet.

TS

[No Gravy]

I'm still confused! One person says they shouldn't have listed it as a charge off and another says yeah, it's ok they can do that. Which one is correct?

Go online to each of the credit bureaus and dispute it. They have a place to check for "included in bankruptcy." Normally that's all you need to do and it will be corrected.

[debtor36K]

I'm still confused! One person says they shouldn't have listed it as a charge off and another says yeah, it's ok they can do that. Which one is correct?

[debtor36K]

but as a charge off the debt is still oweing and due. They will still attempt to collect, correct?

[AngelinaCat]

Since it was included in the BK, when the creditor was notified, then they automatically wrote it off. We actually had a small Radio Shack account that we opened AFTER we filed, but the parent company owns another account that we included in our BK, and the parent company charged both of them off.

[debtor36K]

well, I was completely current! The next payment was aug 04 and I filed july 22

[JRScott]

Included in Bankruptcy.

A charge off is required at 180 days past due by regulation. It is where they sell it to an outside creditor generally.

[debtor36K]

what is IIB?

[JRScott]

It should read IIB. It should not show as being late.

Dispute it with the reporting agency.

[debtor36K]

I just looked into my last statement and the payment was not due until 08/04/08 and I filed bankruptcy on 07/22 so can they claim the payment is late and report a charge off?? I don't get it