Chapter 7 BK and Charge-Offs

[Anonymous]

I had a Chapter 7 BK in early 2015, set to fall off in 2023 (according to my Transunion CR). When I pulled my credit report in 2015 it showed that my KeyBank Student Loan was discharged in my BK. When I pulled a new credit report in 2016 it showed that my Keybank loan was set to be removed from my credit report on 9/2019, but showing as a Charge-Off now.... What can I do about this? I want to apply for a mortgage but dont think it will be easy with it showing as a charge-off. Afraid to call KeyBank and discuss this because I do not want it to reset.

[medicgrrl]

Chapter 7 typically stays on your report for 10 years from filing date.  Hopefully TU will actually remove it early.

Was the student loan included and discharged thru the BK?  Most student loans are not included, but there  are exceptions the reporting date after the BK?  If it was included, dispute it with the credit bureau.  Are the other 2 reports showing it as IIB?

[Anonymous]

I included it in my Chapter 7, not sure if it would really come off. I just double checked my 2015 CR's for Experian and Transunion and they did say included in BK. On the 2016 CR's for both Experian and Transunion, it says Charge-Off. Will disbuting it with the Bureau's affect my credit scores?

[medicgrrl]

It's hard to say.  It depends on how they update it.  Was the account charged off prior to the BK?  Does it show a balance?

[Anonymous]

It's hard to say since updates change a coupld/few times during/after ch7.  If you hired someone, talk to them and see what they say.

[Anonymous]

I filed myself.

[Anonymous]

I honestly don't remember. I believe it was.

[Scupra]

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@Anonymous wrote:

I honestly don't remember. I believe it was.

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If the debt was charged off prior to the BK it will continue to report as charged off.. Unfortunately this is the correct way for it to report.

[pizza1]

Forgot to say "Welcome" to you! Don't be shy ever about posting, and glad you're here sharing your experience/dilemma with everyone. Welcome to the forums JoannaA!!

Side note...agree with @Scupra

[Anonymous]

Thank you pizza1. 

Do you think I should wait until my charge-off falls off my credit January 2019 to apply for a mortgage? It is a student loan for about $12,000. I am just unsure if it is a deal breaker if it is unpaid.