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Can creditors classify an account as a charge-off because it was included in a chapter 7 bankruptcy?
Wiki User
∙ 18y ago
Yes and no. If an account was already charged-off before the bankruptcy, it can be reported as a charge-off. By law, the creditors must charge-off accounts included in bankruptcy, BUT they can not REPORT that charge-off if it happens AFTER the bankuptcy. Negative reporting on discharged debts is a violation of the permanent injunction of the discharge.
Wiki User
∙ 18y ago
Wiki User
∙ 11y agoOf course. A charge-off is a tax benefit and has nothing to do with your bankruptcy.
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If you have an account that is showing negative and it was included in a bankruptcy can you have the negative account removed or does it stay there and count as two negatives?
The term negative is rather confusing. If the account did not have a balance it would not have been included in the bankruptcy. Any account included in a bankruptcy will remain on the report for the requred length of time, open accounts would be seven years, they will be marked included in bankruptcy. The BK accounts listing will remain for 10.
How long should bankruptcy paperwork be kept?
== Forever ! That sounds extreme, but given the current boom in zombie debt collection, a 20 year old debt included in a bankruptcy could come back to haunt you down the road and you would have to produce proof that the debt WAS included in your bankruptcy to make the collection agencies back off and go away. Keep copies of your complete bankruptcy petition, all schedules, the list of creditors and your discharge letter in a safe deposit box (or similar) and never lose it. If storage is a problem, at the very least scan the entire petition and burn it to a CD and keep IT in a safe and fireproof location.
How can creditors size a tax refund check one year after filing chapter 7 bankruptcy?
The answer depends on who the creditor is and the status of the debt. If the debt was a student loan or other non-dischargable debt, then your tax refund can be taken. If the debt WAS discharged, ANY collection action of any kind on a discharged debt is a violation of the permanent injunction of the discharge and therefore illegal. If the creditor was not included on the creditor matrix, then informing them of the bankruptcy and discharge of the debt may be all that is necessary to have the refund returned to you. In other cases it may be necessary to file a Motion for Contempt against the creditor in bankruptcy court. This would require the re-opening of the bankruptcy.
Will your credit report only show a discharged bankruptcy or will it also show all the accounts included in the bankruptcy?
Your credit report will show both the accounts (which were listed first) and the legal entry of the bankruptcy in the public records portion of your credit report. Once a bankruptcy is discharged, credit grantors should update the account listing (called a trade line) and make sure that no derogatory information is showing (like past due balance or collection account notations) EXCEPT for the "included in bankruptcy" statement. This is what SHOULD happen. It's up to you to follow up and make sure that your credit report looks like it is supposed to after a bankruptcy.
If an account was included in bankruptcy can the creditor still show it as a charge off?
I think that your credit report would be updated to show that the account was "included in a Ch 7 bankruptcy." You should be able to get a free credit report from www.annualcreditreport.com if you want to check your credit report to be sure the account's status is listed correctly.
Can your creditors change credit report entries from Bankruptcy to Charged Off or Collection after discharge?
No. All entries have to be marked "included in bankruptcy". Obviously that only applies if they were actually included.
When a creditor is paid-off through a Chapter 13 Bankruptcy is the creditors information automatically removed from your credit history?
No. Sometimes it will be reported as "Included in Bankruptcy"
What happens to someone in a personal bankruptcy?
It depends on whether or not you qualify for Chapter 7 or Chapter 13. For Chapter 13, you will slowly have to pay your creditors back over time. For Chapter 7, you have to assign a value to everything that you own. The creditors will then determine whether or not these items will be included in the bankruptcy in a hearing.
Can creditors object to a bankruptcy filing or plan?
Yes. Each type of bankruptcy allows creditors to object to specific debts included in the plan or the manner in which the plan addresses the repayment or discharge. In Chapter 7 Bankruptcy, creditors generally have 60 days after the first creditors meeting to object to the discharge of a specific debt. If no objections are filed, the court will issue the discharge order and the trustee will proceed to collect and sell the assets, then distribute the proceeds to the creditors under a predetermined system. If there are objections, the bankruptcy itself, less the objected debts, continues through to discharge. It may be necessary to have a trial before a judge to resolve the items that creditors objected to. In a Chapter 13 case, creditors are given an opportunity to object to the plan for repayment. If there are no objections filed by creditors or the trustee, the plan may be confirmed as filed. After the plan is confirmed, the trustee will distribute the payments from the debtor to creditors until the
Should the balance of a creditor you filed chapter 7 on show zero on your credit report after it has been discharged?
No. Bankruptcy discharge does not mean the money isn't owed. It means that creditors cannot attempt to collect it. The money will always be owed. Accounts included in bankruptcy will stay on the cr marked included in bankruptcy, for the full seven years.
Can the bank seize assets in the bank during a bankruptcy?
If creditors believe the person is trying to remove funds from accounts to keep them from bankruptcy proceedings; creditors can petition the court to freeze all accounts/assets. A bank cannot arbitraily seize account funds unless the depositer has a loan with the bank which includes a set off provision. Even then the bankruptcy trustee can request the funds be returned and included as assets in the bankruptcy.
If you file bankruptcy does that mean that the payment history on your accounts is not supposed to show anymore?
This would be the best case scenario for your credit report, but it does not happen automatically. Hopefully, your bankruptcy attorney was diligent about informing all creditors included that their debts were discharged. If not, and you still have derogatory information showing that was included and discharged in a bankruptcy; then you need to send letters of dispute to the creditors and the credit bureaus. Follow up to make certain that nothing shows on your credit report except for the legal entry of bankruptcy, its disposition (the discharge) and all trade lines have no negative information except for the "included in..." or "discharged through..." notation.
Why did Anchor Blue declare bankruptcy?
Anchor Blue declared bankruptcy because it had more debt than assets and did not believe it could pay its creditors. The company had been loosing sales to its competition, which included American Eagle.
If someone filed bankruptcy back in 1999 and a creditor was not listed were they included in the bankruptcy?
No. And if you knew they were a creditor, you could be subject to fraud charges for having filed papers with the court swearing you were declaring your entire financial status and known creditors.
What if the debt is incurred after the bankruptcy filing but before the bankruptcy discharge?
When an individual files for bankruptcy, he/she must list down all the creditors and debts that they have. If the bankruptcy has already been filed and the individual has incurred new debt but has not yet been discharged by bankruptcy, that new debt is not included in the bankruptcy discharge. For an official opinion, it is advised you seek legal counsel. It is really important to seek legal advice from the expert about filing for bankruptcy.
If you are say a year into a 60 month chapter 13 bankruptcy and you receive a small inheritance not enough to pay debts what is your obligation?
Your obligation is to let your attorney and/or bankruptcy trustee know about this. They will decide if the asset needs to be divided among creditors or included in your payments.
Are accounts after bankruptcy included in bankruptcy?
Any debt that you accumulate before your bankruptcy filing and have listed on your petition will be eliminated when you receive your discharge as long as your creditors do not file an injunction against you. After you receive your discharge you are welcome and able to open new credit accounts but any debt you accumulate will not be considered a part of the bankruptcy you filed before opening the account.
