Can creditor keep reporting charged off?

[lostinmich]

I have a home equity loan that was included in my ch 7. They are reporting that it was charged off the month before I filed. Ok, I can accept that. However, they were also included in my BK and shouldn't that show that way on my credit reports? Also, for the past two months, they have reported a chargeoff to the CRA's. They hadn't been reporting since I filed in December. Are they able to report a charge off every month? Wouldn't that be a violation?

[lrprn]

I have a home equity loan that was included in my ch 7. They are reporting that it was charged off the month before I filed. Ok, I can accept that. However, they were also included in my BK and shouldn't that show that way on my credit reports? Also, for the past two months, they have reported a chargeoff to the CRA's. They hadn't been reporting since I filed in December. Are they able to report a charge off every month? Wouldn't that be a violation?

If the HEL lender did indeed charge the loan off BEFORE you filed, then they can report the loan as charged off.
Ask your lawyer if you can send the HEL lender a certified return receipt letter asking them to provide a copy of their archived loan record showing when they charged the loan off and if they sold the loan, who they sold it to and that date as well.

[lostinmich]

Good idea thanks! I'm going to follow up with my lawyer and find that out. However, I don't think I was clear about the reporting... I mean, when one looks at a "true credit" report they see a graphic of the previous two years. What I'm seeing they are reporting a monthly charge off. Maybe I'm not understanding this correctly but I wouldn't think they could report that monthly.... as an over, total action, yes, I can understand reporting the charge off. I'm going to attach a picture so you can see what I mean.

[lostinmich]

Ok folks, I need some more advice here. Irwin Home Equity has once again reported a charge off on my account. My monthly score is going down because it's showing "charge off" for the last 2 months. Is this right?? Can they do this? I thought it's one charge off and that's it. As I mentioned before, I understand they can report the charge off if that's what they did but can they keep re-aging the account by reporting it month after month, especially since it's been discharged??

Thanks

[SinkingFast]

It's a problem we're encountering too. Accts we know were not charged of and should report as IIB are being shown "Charged Off, Bad Debt".

We've disputed several times and the reports haven't changed. I think this is an intentional stumbling block Creditors are throwing in the way of people who filed BK and want to rebuild.

Just remember, time heals all wounds. PLUS, if you go to get another mortgage, you'll have your BK paperwork to show that Creditor was listed in BK and there's no 1099 income claimed on your taxes.

Maybe a third party being involved will help clarify the situation.

[hindsight2020]

Some of these guys will do this. Wells Fargo reported every month until the seven year mark with me (which just passed in July). Bank of America also carries the wound around. They and their affiliates will never extend me credit, presumably until the day I die.

Keep you credit reports and make notes on them so you know when these negative items will fall off the reports...and watch them. What I found in my reports was that there were certain months that I was making serious delinquencies. What I am doing (still today, almost 8 years after filing) is waiting for these negative reports to drop off. After confirming they are gone, then I can consider applying for big credit, like refi, etc.

Keep in mind that some of these creditors will follow you and effectivly banish you. Brfore you apply for any credit, check their affiliations because as I have found, it's not just MBNA, it's BofA too, etc., etc.

No sense waiting to get rejected. Do you homework first and save the hassle. Just my thoughts.

[lostinmich]

I have since found out that a creditor CANNOT report and additional chargeoff notation as I had described. Regardless whether or not the original creditor charged off the debt, they still cannot continually report month-to-month as such as it is considered to be trying to collect the debt. The original reporting of a chargeoff can be reported but NOTHING after my bankruptcy can be. I am in the process of disputing with the OC and the CRA's. This WILL be resolved or I will be suing them.

[rrockinggramma]

you need to read the post about the prisoners of debt, in the news section. I believe that this is what many creditors are trying to do so that they can eventually sell it to the scum bk debt collectors. That was an interesting article and a scary one too. I checked my credit report for free recently and to my surprise, many of my debts that were included in my chapter 7 are not reporting as IIB etc. However, because of that they are all scheduled to fall off my report in 08. So I am keeping mum and will pull another report next year just to see if they are indeed gone. But I think congress will have to act to get the credit bureau's and creditors to report correctly.