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After Bankruptcy Charge-Off Of Account


Judi
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Our bankruptcy was discharged in November of 2003. At the time we had an account with Home Depot with a zero balance. we didn't list them in the bankruptcy for obvious reasons, we didn't owe them anything. We were never notified that the account was being closed so we used the account to make a purchase with deferred payments and interest for 6 months. We paid that off within the alloted time and made a couple of more purchase with the deferred interest, no payments for 12 months after the initial purchase. Things were going along fine and we were paying the bill every month until I called them about updating the card. We were using an older card and even though it always worked for charging the merchandise they had to look the account number up at the store for some reason.

They updated the account by closing the old account and issuing a new card with a new account number. We received the new card and actually used it to make a purchase, once again deferred interest and payments. I guess that must have sent up a flag and they did a random check and discovered the BK. For some reason this month I didn't receive our bill and wanted to keep up with the payments so I called them about it. They told me there was a block on the account and that in fact, the account had been cancelled and the balance charged off. My question is this - am I supposed to still pay the bill? It wasn't included in the BK because the account was inactive at the time but STILL open. The girl I talked to on the phone couldn't answer the question but she did say the balance had been "charged off". My first thought was do I even continue making payments on a charged off account? I'm not sure what I am legally responsible for now. Can someone help?

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That is just ridiculous !! Charging off an account that is NOT deliquent just because they discovered your DISCHARGED bankruptcy - in which they were not included ???

I'd take them to task over that charge-off. You were paying on it and current, why charge it off ??

Its their practice to close accounts of people who file BK even if no money is owed, so closing the account makes sense, but the charge-off does NOT.

You need to go up the food chain at Home Depot accounting and find out WHY they charged-off when you were not behind ?? Closing it, ok, charge-off.. NOT ! You need to make sure they don't report that charge-off to the CRA's, it will seriously damage your post-bankruptcy credit rebuilding.

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Thank you for your reply, Lady but I hoped someone would comment on my question at the end of my post. Guess you were so upset that they charged-off a good account you missed what I asked.

"Do I even continue making payments on a charged off account? I'm not sure what I am legally responsible for now."

What exactly is a charged-off account anyway? I always assumed it was a debt reported to the Credit Bureau as no longer being collectable.

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To answer your question, YES you are STILL liable for making the payments. A 'charge-off' is nothing but an accounting function where they move non-performing accounts (not paying) to a different ledger and they write it off as a loss - and get a tax break for it. They can charge-off any time IF the account is unpaid or not paid enough to keep it current, but on an account that WAS current - that is, at best, questionable.

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