Charged off home equity loan not reporting correctly

[FredWilson]

Hi all, first post here. I've been reading, reading, and reading over the past few weeks. I have two issues here but I'll just post one here and start a new thread for the other.

I had to file bankruptcy in late 2006 due to a failed business. Since my discharge earlier this year I have been working at cleaning up my credit reports and included in that bankruptcy was a home equity loan. This creditor apparently charged off the loan one month before my filing. I know that there isn't much I can do about the charge off since there is no way to prove that they did that before my filing. However, they will not report the account as included in bankruptcy AND they have reported it as a charge off for the past 2 months. Keep in mind that my bankruptcy has been discharged for over 6 months. This recent charge off has my credit score going in the toilet as it shows as a 'recent late payment'. I've disputed with the CRA's two or three times now and the account keeps coming back as verified.

My question is, where do I go/what do I do now to get them to report correctly and to stop continually reporting the charge off. I understand they can report the original charge off but not month to month as it is view as attempting to collect a bankruptcy discharge debt.

Thoughts and advice are greatly appreciated.

Fred

[Amerikaner83]

Moved this thread form Credit Repair to Bankruptcy

I think if it was IIB, then you have action against them, it should be reported as such.

[FredWilson]

Sorry for the incorrect forum posting.

How do I go about getting all my ducks in a row to file suit? I want to make sure I do this right so there is no question later.

Thanks!

[Amerikaner83]

No worries.

Bankruptcy is not one of my strong points - So I'm a bit hesitant to answer your question - don't want to give out bad info you know?

That being said - the BK creditor (I think that's what they're called...the guy who facilitates things btwn you and your creditors....) should have informed these guys that the account is IIB.

[FredWilson]

Hmmmm.... ok. Anyone else? I know they received notification of my BK and they are included on my discharge papers. I wonder if it's time to start building a paper trail with them.

[Amerikaner83]

I know the answer to that one: YES! Paper trails can save your @ss!

[sgip2000]

I'm going through the same thing, I just sent a bunch of ITS letters. It's a violation of the discharge order and the court can fine them.

[FredWilson]

I'm going through the same thing, I just sent a bunch of ITS letters. It's a violation of the discharge order and the court can fine them.

Ok, so this makes me wonder... should I pursue this by following the "dispute with original creditor" instructions or should I do it through the BK court? If it's the latter, how do I do that?

[LadynRed]

You've disputed with the CRA's, now you must follow thru and dispute directly with the creditor. They MUST note the account as IIB with the proper date of your BK filing, and it must be reported with a zero balance.

They CAN report the STATUS of the account, but that status date MUST be the date of the charge-off - NOT a current date.

Send them a letter and tell them that if they do not correct their illegal reporting immediately, you will file a motion for contempt and request for sanctions against them in bankruptcy court and then they can explain to a Federal BK judge as to why they are violating the permanent injunction of your discharge. If you file such a motion, and you win (as you likely would) then THEY will also have to pay all your attorney's fees and court costs.. in addition to any sanctions the court levies against them.

IF they don't rectify their reporting, re-open your case and file the motion for contempt.

[FredWilson]

You've disputed with the CRA's, now you must follow thru and dispute directly with the creditor. They MUST note the account as IIB with the proper date of your BK filing, and it must be reported with a zero balance.

They CAN report the STATUS of the account, but that status date MUST be the date of the charge-off - NOT a current date.

Send them a letter and tell them that if they do not correct their illegal reporting immediately, you will file a motion for contempt and request for sanctions against them in bankruptcy court and then they can explain to a Federal BK judge as to why they are violating the permanent injunction of your discharge. If you file such a motion, and you win (as you likely would) then THEY will also have to pay all your attorney's fees and court costs.. in addition to any sanctions the court levies against them.

IF they don't rectify their reporting, re-open your case and file the motion for contempt.

So would I want to use the "dispute w/original creditor" process or would I need something different since it's an account IIB? Thinking out loud here... the FCRA still applies here but since it was an IIB I need to follow through with the bankruptcy court right? Is it better to go that route instead of through local, small claims court?

BTW, thanks for the advice.

[LadynRed]

Your next step is the dispute with the creditor directly, but I would include what I posted previously as a reminder that you are not fooling around.

If they refuse to correct, follow thru in bankruptcy court, they wield a LOT more power and pack a bigger punch than any small claims court ever could for FCRA violations.