Included in Bankruptcy

[hoosier64]

Can a credit card account be listed as included in bankruptcy on credit reports if that account was open when the bankruptcy was filed but was not included in the bankrtupcy? There was a small balance when the account was closed by the creditor and I paid in full a few months later because they would not accept payment initially.

I disputed with the creditor, but they say this account is reporting correctly as included in bankruptcy.

[FireMedic1]

Any creditor that recieves the filing notice will close out an account so it doesnt appear they are trying to collect on a debt. They wont accept payment until its all DC'ed. So yes its reporting correctly. All creditors on your reports are notified open or closed and even old accounts that are closed. Its the BK laws.

[hoosier64]

@FireMedic1 

In my case, the creditor did accept payment before my BK was discharged and that account was not included in the bankruptcy nor was it discharged in bankruptcy. Why do you think it is reporting correctly?

I dug into this a bit deeper. The Metro 2 guidelines (6-16) say that an account that was not discharged in bankruptcy should report Consumer Information Indicator Q (removing the bankruptcy indicators for the account) once a Chapter 13 plan is completed. Am I misunderstanding the reporting guidelines?

[FireMedic1]

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@hoosier64 wrote:

Can a credit card account be listed as included in bankruptcy on credit reports if that account was open when the bankruptcy was filed but was not included in the bankrtupcy? There was a small balance when the account was closed by the creditor and I paid in full a few months later because they would not accept payment initially.

I disputed with the creditor, but they say this account is reporting correctly as included in bankruptcy.

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Little confusing. Is it still open or closed due to BK?

[hoosier64]

The account is no longer open. It was closed by the creditor after I filed for bankruptcy. I did not include that account in the bankruptcy since I had been paying in full every month. This account was not included in my Chapter 13 payment plan.

[madmann26]

It's not going to matter. A creditor will close an account and list it as IIB, good standing or not.

You paid the account but didn't IIB which might get you a little buying power with them once the bankruptcy is over.

Creditors subscribe to services that alert them when someone files bankruptcy. 

[hoosier64]

The reason I care is because almost all of my derogatories fell off while I was in Chapter 13. If I still had a bunch of derogatories from pre-BK, I wouldn't care about one account since it wouldn't make a difference. If I can get this account to report as non-derogatory, there is only one derogatory account remaining. That account is also not reporting correctly. I disputed both, and they were re-aged.

[FireMedic1]

They werent re-aged. Just updated. Stop diputing hoping to get them removed. It was IIB and will stay that way. It wont go back to pays as agreed. Whats done is done.

[dryanaz80]

Slightly different take on this question. An account that I had paid as agreed and never missed a payment on and had a zero balance which - incidentally gave me a $3k CLI days after filing - shows as IIB which of course becomes a derog TL. 

I had a few other zero balance cards that I called to close on my own ahead of filing but as this was a store card, completely forgot about it.  I did not list it on my paperwork, but I know they still found out and closed it. Should this account be reporting as derog?  

For context, I had a secured loan with OneMain and although they were listed on the initial filing, they were paid in full just after my 341 meeting. They still reported the loan as derog IIB post discharge.  I disputed with EX and they came back and deleted the TL. Within two weeks both TU and EQ deleted it as well.

This leads me to my question above regarding a zero balance card that never was late now reporting as derog when my loan that was initially listed on petition and paid off prior to discharge is removed due to inaccurate reporting. 

Appreciate any feedback or insight. 

ps - I did send in the payoff and title release from OneMain dated 7/20 when my discharge was 9/29 to EX to support my dispute that I never benefited from bK filing with the lender nor did they lose anything on the loan.