Charge offs during bankruptcy

Anonymous · ‎05-23-2007

Hi all,
I filed for BK in March 2005. I had two loans that were "charged off" in May 2005. My BK was discharged in June 2007. Can they charge off an account while I'm in the middle of my bankruptcy? In March 2005, it is only showing as 60 days late.

I disputed the informaiton and of course Experian said that they contacted the company and that the information was correct. I don't understand???

Also, would it really help my credit score at all to have it changed from CHARGED OFF to DISCHARGED with BK?

Thanks!

Anonymous · ‎05-24-2007

Anyone???

homewardbound · ‎05-24-2007

I'm just unclear that you filed for BK in March 2005 but it was not discharged until June 2007. Do you mean June of 2005? I'm not positive, but I don't really think it makes a difference what the report says on an account that was not paid for, as long as the balance says, $0. It's important that it is showing a $0 balance, obviously, because that assures you that the debt was discharged. I don't think your score will go up if the debt description is changed from "charged off" to included in BK. Any BK is going to have a terrible effect on your credit - I know because I am going through it myself.

Anonymous · ‎05-24-2007

I did mean that it was discharged in June of 2005. I'm so used to typing the current year, that I got it wrong!

homewardbound · ‎05-24-2007

Ok, so unfotunately I don't think it'll boost your credit to change the acct from Charge Off to BK. The biggest way to boost credit right now is to establish positive credit, open credit cards and use them responsibly and pay them off each month and to pay all bills on time and never be late. I'm just curious, how much has your credit scores gone up since the BK? I just filed in March and am curious to know your situation. Thanks.

Anonymous · ‎05-24-2007

When you filed, if an account was late, charge off, or in collections, then they can legally report that. However, if that didn't happen until AFTER you filed, then they cannot report it as late, charge off, or in collections.

In any event, anything included in a BK has to show a $0 balance.

Anonymous · ‎05-25-2007

I honestly don't know what my credit score did, because I had never pulled my score before filing. I took out an unsecured Orchard Bank CC right after filing, and although it has a $59 annual fee, it has been a good step in re-establishing. I also got a line of credit at my credit union. Then, in December I got a NORMAL credit card from my credit union with no annual fee with a $1000 limit. Finally, in March, I took out an auto loan. My scores currently range from 656-680 depending on who I've talked to.

I actually found that the score I received on this website was 10+ points higher than the score at the credit union when I got my car loan (both through the same credit reporting agency, though). This caused a higher interest rate which I was disappointed in.

Anyway, I"ve heard that BK can ruin you, but I honestly haven't felt that way. BUT, I have been VERY responsible since BK.......NO lates, and slowly increasing my credit.

Good luck!

Anonymous · ‎05-25-2007

If you filed in March of 05, and they are reporting lates after that time, then the TL is inaccurate. Dispute it with the CRAs as inaccurate.