cancel
Showing results for 
Search instead for 
Did you mean: 

Card reporting IIB when it wasn't. Should I dispute it?

FireMedic1
Super Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?

@DaveInAZ If you don't owe a balance on your credit card, you must still list it in your bankruptcy papers. A revolving credit card account is a type of contract, and your contracts are automatically canceled by bankruptcy, including credit cards, leases, and secured auto loans, to name a few. As a result, once your credit card company finds out about the bankruptcy and realizes that it no longer has a contract, it will cancel your card because it won't be able to enforce any ongoing obligations. Simply put, without a valid agreement in place, the credit card company will not be able to make you pay for your purchases.





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 11 of 17
DaveInAZ
Senior Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@FireMedic1 wrote:

@DaveInAZ If you don't owe a balance on your credit card, you must still list it in your bankruptcy papers. A revolving credit card account is a type of contract, and your contracts are automatically canceled by bankruptcy, including credit cards, leases, and secured auto loans, to name a few. As a result, once your credit card company finds out about the bankruptcy and realizes that it no longer has a contract, it will cancel your card because it won't be able to enforce any ongoing obligations. Simply put, without a valid agreement in place, the credit card company will not be able to make you pay for your purchases.


@FireMedic1  You & I are both not lawyers, but I believe you are  . . . over stating some things. According to uscourts.gov,  . . . 

the debtor must provide the following information:

1: A list of all creditors and the amount and nature of their claims;
2: The source, amount, and frequency of the debtor's income;
3: A list of all of the debtor's property; and
4: A detailed list of the debtor's monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.

 

- A credit account with $0 balance is not a creditor and they have no claim. The Oxford Dictionary definition of "creditor" is: "a person or company to whom money is owed". You must list all debts, but if there is no debt it does not have to be listed, because they are not a creditor and they have no claim.

No contracts are "automatically canceled" by bankruptcy, just any attempts to collect any debt are suspended and prohibited. If you lease an apartment or house that is a contract and is not "automatically canceled", as long as you are current on your rent your landlord is not listed and not notified of your filing - because there no debt and no claim. It's just listed under Item 4, living expenses, "shelter". 

 

DCU was not likely notified by the Bankruptcy Court of masscredit's BK filing because he/she correctly did not list it as there was no debt and they had no claim. But financial institutions have services that report BK filings to them. Once DCU was notified by a service of masscredit's filing, or they saw it SP'ing their CR they took the appropriate & responsible action of closing account. There is a risk to them to continue to extend credit to anyone during a bankruptcy proceeding. But in my firm opinion they incorrectly reported it as "included in BK", because it was not - no debt, no claim. The correct & accurate action was to report it as "closed by credit granter", as Lowes responsibly did on my $0 balance account. 

 

Whether DCU decides to correct their error is up to them, and masscredit's art of persuasion. 

Message 12 of 17
FireMedic1
Super Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?

@DaveInAZI researched the topic on the subject matter on 6-7 BK law sites for a half hour. After gathering info just like a project for a college course. This is what I turned in or my post to the professor. Same goes with others who come to a different interpretation of their thesis of a subject matter. Though I didnt label nor judge you. You posted your conclusion as I did mine. No we aren't lawyers just the public with opinions. The OP should seek in depth answers from possibly Legal Aid or discuss it with their lawyer who specializes in BK laws.





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 13 of 17
masscredit
Valued Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?

I appreciate the research and in-depth replies!  Taking it back to a more basic level, a lot of lenders will extend credit to someone if they weren't burned in a BK while others will never let a person back in unless they pay what they owe. And then there are the lenders that will give a person another chance after some time has past. When it comes to DCU, my concern is they will look at my reports that show they were burned then I'll be marked with them. While in reality, I've had a number of car loans that were paid off including the one for the car that I sold the end of last year. Plus, when I had a feeling things were starting to go south, I made sure I didn't use their card incase it got to a point where I was unable to pay them. 

 

I don't know if this is something the manager of the branch would get involved in but I guess it wouldn't hurt to ask for him/her. Or maybe someone higher up in the credit department? I need a person who will make an effort to fix this if it's going to happen.

 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 519 / TU - 495 / EX - 548

Current Scores - EQ - 647 / TU - 580 / EX - 592

SDFCU Secured - $6500 / TD Bank Secured - $5000 / Andrews FCU Secured - $3000 / OpenSky Secured - $3000

Andrews FCU SSL $1500
Message 14 of 17
DaveInAZ
Senior Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@FireMedic1 wrote:

@DaveInAZI researched the topic on the subject matter on 6-7 BK law sites for a half hour. After gathering info just like a project for a college course. This is what I turned in or my post to the professor. Same goes with others who come to a different interpretation of their thesis of a subject matter. Though I didnt label nor judge you. You posted your conclusion as I did mine. No we aren't lawyers just the public with opinions. The OP should seek in depth answers from possibly Legal Aid or discuss it with their lawyer who specializes in BK laws.


@FireMedic1  I would like to thank you for your frequent posts, particularly here iin the BK forum trying to help folks through what is often a frustrating & confusing time. 

Let's just agree to disagree on this one. 

Message 15 of 17
FireMedic1
Super Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?


@DaveInAZ wrote:

@FireMedic1 wrote:

@DaveInAZI researched the topic on the subject matter on 6-7 BK law sites for a half hour. After gathering info just like a project for a college course. This is what I turned in or my post to the professor. Same goes with others who come to a different interpretation of their thesis of a subject matter. Though I didnt label nor judge you. You posted your conclusion as I did mine. No we aren't lawyers just the public with opinions. The OP should seek in depth answers from possibly Legal Aid or discuss it with their lawyer who specializes in BK laws.


@FireMedic1  I would like to thank you for your frequent posts, particularly here iin the BK forum trying to help folks through what is often a frustrating & confusing time. 

Let's just agree to disagree on this one. 

 @DaveInAZ Its all good man. Thats why its a forum with different points of views on all types of subjects that come up on this place. Team effort to accomplish the goal. The its up to the OP what best fits thier needs. Peace out! Smiley Happy





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 16 of 17
masscredit
Valued Contributor

Re: Card reporting IIB when it wasn't. Should I dispute it?

I stopped into a local DCU to speak with someone in the loan department. She had to call someone higher up to get the info. I was told the following -

 

 They can't change how the account is reporting because I went in to ask. I'd have to file a dispute to see if it can be changed that way. 

 

I am in good standing with them. I've never had any late payments. The credit card was good and I've paid off a number of auto loans but...

 

They can't approve me for any new credit until 2 years after my discharge.

 

Not that it will matter but I'll probably dispute how the account is reporting to see if it will be changed. It won't be the end of the world if it doesn't happen. The important part is they see that I'm in good standing when they do a review of my history with them.

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 519 / TU - 495 / EX - 548

Current Scores - EQ - 647 / TU - 580 / EX - 592

SDFCU Secured - $6500 / TD Bank Secured - $5000 / Andrews FCU Secured - $3000 / OpenSky Secured - $3000

Andrews FCU SSL $1500
Message 17 of 17
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.