LadynRed

Negative reporting on discharged debts - UPDATED

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Can anyone please point me to a dispute letter for this problem???

 

What problem?  You gave no details.  It would be better if you started your own thread rather than hijack someone else's.

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What problem?  You gave no details.  It would be better if you started your own thread rather than hijack someone else's.

I was not trying to high jack anything.  Since this thread is about 

Negative reporting on discharged debts

This is what I would like to have a sample dispute letter for.

So sorry I confused you.

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Hello Everyone,

Looking for help.  I have my first mortgage creditor reporting a short sale and 120 late instead of "Included in Bankruptcy" with no payment history.  I want to know if this is correct.  I filed chapter 13 on 6/30/2009 and my 1st and 2nd mortgage were in good standing at the time of filing. I also got stuck with a 5 year payment plan. My original plan was to keep my house and strip my 2nd mortgage. However in 2012, while still in my chapter 13 payment plan, I decided I no longer wanted the house and was going to surrender the house back to the lender.  I stopped paying my mortgage on June 2012.  My attorney submitted a motion to sell which was approved on 3/6/2013 by the BK court.  Short sold my house in May 2013.  My chapter 13 discharged in October 2013 after my last payment.  Below is what they are reporting on my report.  Most of my accts included in the BK and at least 1 CRA have deleted that negative info and the other 2 CRA's will be deleting them in June 2016 except for this 1st mortgage acct because the way it is reported. 

Can they report this account as late and/or legally paid less than the full balance?  Or should this be reported with no late payments reflected and a status of "Included in Bankruptcy"?

Date Opened : 05/01/2005
Account StatusClosed
Payment StatusLate
Payment Status DetailsLegally paid in full for less than the full balance / 120 days past due

TIMELINE OF EVENTS

  • 6/2009 - Filed Chapter 13 (schedule D of my paperwork lists 1st and 2nd mortgage lenders)
  • 6/2012 - Stopped paying mortgage until short sale happened
  • 3/6/2013 - Motion to sell approved by bankruptcy
  • 5/24/2013 - Short Sale of house completed
  • 10/2013 - Received Chapter 13 discharge
  • 2/2014 - BK case closed.

 

Thanks in advance for your help.

 

 

 

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On 12/18/2008 at 11:16 PM, OMGWhatHaveIdone said:

So then the tradelines should show a zero amount too correct? What about if a CA does a hard pull on your CR after a bk has been filed? Is that illegal as well? They know you're trying to clean up your credit and get out of debt, so wouldn't the inquiries do damage to the credit score?

What if my bank recently changed the reporting and took the wage earner plan off.

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They can but then you file form 982 with your return where you include the debt that was reported that was discharged in BK and that excludes it from your income. Note that the instructions say Title 11 Bankruptcy but that is the entire Bankruptcy code that includes all the chapters (7,9,11,13). In practice, most creditors do not send a 1099C on discharged debts because it is an act of futility.

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