The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

My Credit Report Still Shows Debt Written Off in Bankruptcy!

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Bankruptcy
Reading Time: 3 mins read
bankruptcy rejected AskTheMoneyCoach.com
28
SHARES
462
VIEWS
Share on FacebookShare on Twitter

Q: I filed for Chapter 13 bankruptcy in January 2008. I just paid it off and should be receiving my discharge soon, but I checked my credit report and there are two credit card accounts on my report that I included in my bankruptcy and that now say “transferred to another lender or claim purchased.” What does this mean?

It also says “included in or discharged through Chapter 13 bankruptcy.” Am I going to be responsible for paying it now that it was sold? I don’t get it.”

A: This is understandably a confusing issue. But let me explain some of what’s going on here.

First of all, the short answer is that no, you’re not going to be responsible for paying it if the debt was sold either during or after your filing of your Chapter 13 bankruptcy.

Any debts that were included in your bankruptcy and that you’ve legitimately been paying off via your Chapter 13, you will not be financially responsible for subsequent to your discharge.

Read 5 Questions You Must Ask Before Filing Chapter 7 or Chapter 13

Let’s remember, your Chapter 13 bankruptcy is a reorganization plan. Unlike a Chapter 7 where you liquidate and where you basically completely wipe out those unsecured personal debts – such as your credit card bills or medical bills – with a Chapter 13 you’ve had to actually pay off some or all of your debts over a three‑to-five- year period.

Since a Chapter 13 can last as long as five years, that’s why they call it a “wage earner’s plan.” You’ve got to have some kind of income in order to show the court that you actually can repay part of your debts.

So I’m assuming since you said you’re just about done with your Chapter 13 bankruptcy that in your case you’ve paid what you rightfully owe through the system and that in or around the next few months you’ll actually be getting a notice that your bankruptcy has been completely done.

You bankruptcy repayment plan appears to have taken four years since it’s just about the end of 2011 and you stated that you started in January 2008.

So here is what’s going to happen.

Regarding those two credit card accounts that say “transferred to another lender or claim purchased,” essentially what that means is that your original credit card company sold the debt to someone else.

When that’s the case, on your credit report they have to show one of two things. They have to say that the account has been sold or they have to show your account reported with a zero balance on it.

Realize that different credit bureaus will report transferred or sold accounts in different ways. I’m going to assume that this is an Equifax credit report because usually with Equifax they’re the ones that’ll say “transferred to another lender or claim purchased.”

Your other credit reports might show it slightly differently. With Experian, for example, the account might be noted as “account transferred to another office.”

With TransUnion, the same account might be indicated by language such as “account transferred or sold, purchased by another lender.”

All of these basically mean the same thing — that the original creditor, the original credit card company that you owed, sold the account because after their own internal collection mechanisms failed they essentially wrote off the debt and assumed that they were not going to be able to collect any further from you.

Bottom line, though, is that once you finish up with your bankruptcy you will not have to pay any additional debt for this matter if those two credit card accounts were included in your bankruptcy.

If you find that those two accounts are not deleted from your credit report after the time frame that they’re supposed to be removed, or that they appear on your credit reports as duplicate accounts (i.e. not shown as included in your bankruptcy), then you can dispute them.

In that case, you would just write the credit bureaus – Equifax, Experian, and TransUnion – dispute the information, and indicate that those accounts were included in your bankruptcy.

That way, the credit bureaus can remove any erroneous or duplicate information about those old credit card accounts.

Tags: Chapter 13Chapter 7
Previous Post

Layaway Shopper Beware

Next Post

Is Your Mortgage Lender Ripping You Off?

Related Articles

50 cent
Bankruptcy

Rapper 50 Cent and Bankruptcy: Myth Vs. Fact in This Money & Media Mirage

by Lynnette Khalfani-Cox, The Money Coach
Obama Gives Student Loan Relief to Millions with College Debt
Bankruptcy

Video: How Your Bankruptcy Will Impact Your Future Spouse’s Credit

by Lynnette Khalfani-Cox, The Money Coach
5 Things to Do Before You Go Into Foreclosure
Bankruptcy

5 Things to Do Before You Go Into Foreclosure

by Lynnette Khalfani-Cox, The Money Coach
AskTheMoneyCoach.com bankruptcy
Bankruptcy

Can I Change My Mind After Paying for a Bankruptcy Filing?

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy
Bankruptcy

5 Reasons People File for Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach
cost to file for bankruptcy AskTheMoneyCoach.com
Bankruptcy

How Much Does it Cost to File for Bankruptcy Protection?

by Lynnette Khalfani-Cox, The Money Coach
truth bankruptcy AskTheMoneyCoach.com
Bankruptcy

The Truth About Bankruptcy: It’s All Here – The Good and Bad

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy rejected AskTheMoneyCoach.com
Bankruptcy

Avoid These Common Mistakes Or Your Bankruptcy Filing Will Be Rejected

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy fresh start AskTheMoneyCoach.com
Bankruptcy

Best Ways to Rebuild Your Life After Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach
Next Post
refinance

Is Your Mortgage Lender Ripping You Off?

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist