What happens to a charged off account if I file bankruptcy?

Question

I have three accounts that have been "charged off". Two have been sent to collection agencies, and of those, one has been refered to a law office which is starting a lawsuit against me. But one of the three has just sort of disappeared. I got a charge off letter, but have heard nothing else - no collections on that one.

If I file bankruptcy, do the "charge off"s get reversed?

I have heard that charge off actually looks worse than bankruptcy on your credit report.

Answer 1

It really doesn't matter at this point which looks worse on your credit report. You need to seek a qualified bankruptcy attorney in your area to see what type of bk you qualify for. A charge off in a chapter 7 filing will discharge the debt if you qualify. A chapter 13 is run thru a payment plan paying the creditors either for 3 or 5 years, depending on your income. If a bankruptcy is not filed, the 3 charge off can be sued upon, garnishment of wages granted and/or bank accounts. Best Advice, get hold of an attorney asap and see what you qualify for first. You will need to provide pay stubs for the last six months, list of your debt, assets, and last 4 years of taxes. Once the attorney reviews all this information, they will be able to tell you what you qualify for. Trust me..the debt didn't just disappear, they will find you and sue. The reason they have "disappeared", probably in the process of sending it to an attorney as they have given up any hope in collecting the debt from you as you have not paid anything. Seek the legal counsel and see what they can do to help you. Good Luck!

Answer 2

Your charged off accounts should have been included in your bankruptcy proceedings....You need to advise the lawyer and collection agencies of your bankruptcy with the type and case number, where it was filed, etc. If you are in Chapter 7, that should be enough; Chapter 13, you may still have some sort of obligation...but you need to speak to your original attorney (who filed bankruptcy for you). Check your copies of the papers, hopefully it will list the three accounts in them; if they're not included, then you might have a problem.....Your credit report will be bad no matter what, so just try to stay out of debt, don't open any more credit cards, and live within your means...its difficult (I know, because that's what I'm doing) but doable! Good luck.