Charged-off by OC prior to filing BK..."IIB"?

ScoreBooster · ‎02-14-2011

Hi,

Can anybody tell me how accounts from original creditors that were either charged-off or sold to somebody else prior to filing BK are supposed to be reported once discharged?

I already know that they can still be reported as "charge-off" but shouldn't they say "IIB" as well? I have at least a dozen of old accounts that were either charged-off and/or sold to somebody else that don't mention "IIB" although their debt was indeed "IIB" - just not the OC.

Thanks for any input!

IOBA · ‎02-14-2011

Maybe this should be moved to the BK forum.

From what I understand, the OC charged off the debt before you filed BK. The OC would be correct and accurate in reporting the debt on your CR as charged off.

If the OC sold the debt to collections prior to you filing BK, then again, they are correct in how they are reporting. The CA should have been specifically mentioned/listed/included in your BK. If they were not, then you still owe the debt to the CA.

Some people have had success in going back to the attny/BK judge, reopening the BK, and including the CA's.

I hope this helps. Someone else will chime in soon.

ScoreBooster · ‎02-14-2011

Thanks.

I know that the OC is allowed to report as "charge-off" - the question, however, is if they ALSO have to report that the debt was IIB IN ADDITION to that.

The CAs were included and report "IIB". Nobody is currently trying to collect from me. The only question is the correct reporting-status of the OCs.

Problem is that under a manual credit-review, a creditor could have the impression that the account and debt of the OC is still unpaid because they show no indication of my BK - just like any other charge-off of somebody who still ows money and didn't file BK. As you might know, a "charge-ff" and $0 as account-balance doesn't mean that debt is paid.

IOBA · ‎02-14-2011

Since the debt was reported as a charge off PRIOR to your filing for BK, I don't think they are obligated to IIB notation.

At the time you filed BK, in the eyes of the OC, the debt had already been written off as uncollectable. They may have sold it or transferred it to another company.

I think under manual review, a person who understands credit, would logically know that a charged off debt would have to go somewhere. Logically, to a CA. The CA were included in the BK and are noted as such. If you have any concern, write a letter explaining that the debt was charged off prior to filing for BK. The balance reports as zero from the OC, so no one will think you owe money to the OC. The CA's who bought the debt would also have to show a zero balance, as well as the IIB notation.

Looking at the big picture of your CR, it will show zero owed on the debt across the board. I wouldn't worry about it.

Is there something coming up that you think will be affected by this? Maybe we can help you with that?

ScoreBooster · ‎02-14-2011

@IOBA wrote:

I think under manual review, a person who understands credit, would logically know that a charged off debt would have to go somewhere. Logically, to a CA. The CA were included in the BK and are noted as such. If you have any concern, write a letter explaining that the debt was charged off prior to filing for BK. The balance reports as zero from the OC, so no one will think you owe money to the OC. The CA's who bought the debt would also have to show a zero balance, as well as the IIB notation.

Is there something coming up that you think will be affected by this? Maybe we can help you with that?

Right now, I'm just trying to clean up my credit after BK and in order to do so most effectively, I'm trying to get as much info about the "rules" as possible.

The issue is that "charge-off, $0 Balance" without IIB-notation doesn't mean you don't owe said creditor any money. Even when transferred to a CA, nobody knows that said CA is dealing with that account - and in addition, not every CA reports in the first place. Even if the debt was transferred and says so on the report...if the CA isn't reporting at all, nobody can tell if I'm still liable for said account or not.

scrubs · ‎02-15-2011

i file for bk two yrs ago. i had a car payment that show the same notation and it did not hurt my chances of getting credit or hurting my credit score that much. my credit score is mostly in the low 700s.

imo dont too mch into this tradeline because i made a big deal about it in the early stage of my post bk and after three time of disbute they slap me with an update of my credit report and that hurt my scores. now that tl is going by-by between june and aug 2011.