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UCC Financial debt type question

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Dunno if anyone here can answer this but:

I've been reading up some on the UCC laws and forms lately. I came across a template letter on the net from someone regarding debts that said something along the lines of:


Dear (whomever),

This letter is to verify that (YOUR NAME in capital letters) is bankrupt. Please close the account, and make the closing entries.


(YOUR NAME HERE in capital letters).


Now, while legalspeak/money isn't my thing, I did take some accounting classes in college, and I know that any mid level accounting book will say that when you do the books at the end of the month, all closing entries HAVE to be 0. That's just how they have to be marked.

My question is this: I know the *basics* of the UCC and the premise of YOUR NAME in capital letters is a different entity than Your Name in regular letters. I've never really understood the reasons for this or the legality, which I guess is what I'm confused on.

I've only ever filed a UCC once--a UCC 1 or UCC 5 I believe.. something that was supposed to have the effect of never having to pay a speeding ticket again, though I've never tested this--

Doh, getting off track. OK Question: If I'm right, and the closing entries by making a request like this come out to be 0, wouldn't that essentially erase any debt I've acquired somehow or another? And if the debt was 0, wouldn't that make things a lot easier to have removed off my report?

Is any of my thinking on this right? The only other references I could find with regard to UCC and debt had to do with YOUR NAME(capital letters) becoming indebted to Your Name(regular letters), who becomes the primary creditor for all debt ever incurred by you.. but that seemed kind of shady to me, and not really something I wanted to read up any more on..

Any guidance here would be greatly appreciated.

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Doh forgot to add one thing to it. This thing said you don't actually DECLARE bankruptcy, you just state that YOUR NAME(capital letters) is bankrupt, as.. well, I don't know why, but apparently you can just say your capital letters self is bankrupt and it makes it so.

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When a creditor chargesoff an account {marks it to zero for your ex.} all it means is they are notifying shareholders and regulators that the chances of collecting are not realistic. For banks and cc companies, the FDIC requires the chargeoff to be a the 180 day mark {with some limited wiggle room}.

This does not cancel your obligation. Colection activity may still proceed either with the OC or it can be sold/assigned to 3rd party collectors.

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