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does re-affirm essentially mean charge off

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does re-affirm essentially mean charge off

After our BK I pulled all 3 reports. We re-affirmed our auto loan, but not without a catch. our original balance was 11,500 dollars. The bank dropped 3,500 off, and lowered the interest rate by %.25. On only one credit report it showed (after BK) 180 days past due. I contacted the lender, and they were in full agreement that was not correct. So I disputed it, the bank callled me back, and stated they were going to show it as a charge off. i stated it might be written off by your company, but that debt was reffirfmed. So, is it really a charge off that can be reported like that. They made the offer to drop that balance down. Also, during our "stay" one ca had been reporting our current debt as past due, but not the other ca's. my score is currentlly at a 607, I am trying to get an USDA direct loan, but I heaqrd I need a 640. Before the bankruptcy we were never EVER late on our payments. Any thoughts or ideas, please share them I need to understand some of this, and the attorney we used will not give us any help now that our BK is over.
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New Contributor

Re: does re-affirm essentially mean charge off

I'm new to all this bankruptcy talk as I am just learning it is one of my options. Can you explain exactly what reaffirmation of an auto loan is? I'm looking into it as a possible option but it seems my ability to google that info and find it are to no avail.

My Scores
2009 Below 500 on all scores
April 2011 585 EX 542 TU 516 EQ
Current Score
Aug 2011 630 EX 574 TU 551 EQ
Oct 2011 644 EX 602 TU 560 EQ
Dec 2011 654 EX 605 TU 590 EQ
Goal Score:
720 mid score by September 2012
60 point jump in 6 months!! Praise GOD
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Valued Contributor

Re: does re-affirm essentially mean charge off

No a reaffirmation of debt does not mean charge off. The offer of lowering the balance and interest rate after you and bank signed the reaffirmation of debt or before? The payment history should continue with no reference to the BK.
08/2018 Cap 1 FICO 813 TUC FICO 8 804 as of 08/29/2018
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