Bankruptcy and Collection

RUSTY101 · ‎11-21-2011

My question is: If you have an account that was included in bankruptcy, can it also show up seperate as a collection?

I have one like that. My score seems to be getting hit once for bankr. and again as a collection, is this right?

If it is not suppose to be 2 different ways, how do I fix it?

Thank You

StartingOver10 · ‎11-27-2011

I had the exact situation, I had filed BK in Sept 08 and was discharged Jan 09. March 09 one of the creditors from the BK sold the debt to a CA and they added a collections to my credit report.

Here's what I did: First I called the CA (I know, you are supposed to write, but I was PO'ed!). Spoke to the front line phone jockey who did nothing but try to make me angry. However, I made sure to specify in the call that 1) the debt was discharged in the BK - gave file number and discharge date and notice that the creditor was in the petition and 2) told him they were violating the discharge injunction and 3) told him I was headed back to my BK attorney to bring the issue up as a violation. Now, the phone jockey was rude and uncooperative with me, but they must have been recording the call because within an hour I got a call from a "supervisor" of his. They verified all the info (BK discharge date etc) and removed the collection from my account within 24 hrs. The CA faxed me a copy of the e-oscar order to the CRA's for proof and I got a copy of the credit reports to show it was deleted. I think the "supervisor" must have been a real one this time.LOL Its been almost 3 yrs and the collection has never returned.

You want to make sure that no negatives hit your report after you have a BK. Once they see you are diligent about checking and correcting, they will leave you alone IME.

RUSTY101 · ‎11-27-2011

Well, in the one I have showing as collection, in the status part it says" included in bankru". Is this still taking a hit as a collection also?

Anonymous · ‎12-13-2011

I just had my BK discharged in November of this year. My atty told me if any creditor sells my information and tries to re-collect to contact them right away and they will sue them and share the money with us. It has happened yet. I just ordered my credit report from TU and noticed that all accounts that were included in BK say that but also have a fall off date so my question is the same...am I being penalized twice? By having the BK judgement AND the negatively listed account? Anyone with any insight would be greatly appreciated.

Anonymous · ‎12-13-2011

@Anonymous wrote:
I just ordered my credit report from TU and noticed that all accounts that were included in BK say that but also have a fall off date so my question is the same...am I being penalized twice? By having the BK judgement AND the negatively listed account? Anyone with any insight would be greatly appreciated.

If an account is included in BK, it is correctly noted as IIB. It should also note a zero balance once the BK is discharged.

If you have a BK on your report, every account included would correctly report as iIB.

Hope that helps - I know it can be frustrating the first time you see your report after a BK. The best way to build your score is to build your credit with some positively reporting accounts And if anything is reporting incorrectly, make the effort to get it corrected. I always like to remind folks that, with time, your FICO score can get up to the mid 700's with the BK still reporting - so don't despair.