[chrisf2573]

Ok this is a long story:

My ex-wife and I divorced in 1998. The divorce decree states that all property has been seperated between both parties and each party retains ownership of those items and that neither party will be responsible for the other persons actions. I made sure that this was in the divorce decree because my ex-wife had a gambling problem and I didn't want to be responsible for any of her debts. I did make a mistake though. When we split up our vehicles I didn't think that both of them where in my name.

The debt created by my ex caused me to file for Bankruptcy in fall of 1999, and was discharged in January of 2000. At some point in fall of 1998 and spring of 1999 my ex sold the car she had [in my name] and purchased a new car. I know the name of the dealer as well, because I had to sign release forms for the sale of the vehicle, because it was in my name.

I just recently found out that the bank that held the auto loan, also held a personal loan on my bankruptcy. In 2000 they put the car loan on my credit report as a repossession, sent to collections, and charge off. with a balance due of the original loan amount. I made two years of payments so I don't understand why there is so much on the balance, unless they always put the original loan amount on the credit report.

My problem is that they claim it was delinquent in 1999, which was the year the ex sold the car to the car dealer. How could a car sold to a dealer be in repossession? How do I get this off my credit report? This all happened after my divorce, but the banks say that a divorce decree does not mean anything because the loan was in my name. What is worse is that I have no proof that she was given that car in the divorce, except my canceled checks and pay off of my other vehicle.

Oh and I must add that when I filed for bankruptcy I was no longer in contact with my ex, and have no knowledge of her location. I heard she lives in Vegas but do not know for sure. I don't know where this vehicle is either, because as I mentioned it was suppose to be sold to a dealer.

[Mr. Knowitall]

The car loan should have been paid off when the vehicle was traded in or sold to the dealer. That doesn't clear away any prior default or repossession effort. It isn't yet apparent from what you have written that the information on your credit report is incorrect. (Whether correct or not, an entry from January, 2000 should be dropping off of your credit report next year due to its age.)

[chrisf2573]

Yes the vehicle should have been paid off with the trade in, and if there was any prior delinquencies I would not have been aware of them because my ex would have received them.

As for the 2000 entry, a credit lender reported that it will stay on my credit indefinately until the account is settled. A chargeoff does not get removed unless the account is settled. That is what they told me, actually two lenders told me that.

I am currently trying to get a mortgage for a new home, and I was rejected by two lenders. They would not lend to me because I was high risk. Previous BK, and this charge off [that I had no idea was on my credit]. They told me that my credit score is in the low to mid 700's, but still said that I was too high risk. Also told me I had to resolve this charge off. My current wife of almost 4 years is upset that we might have to pay financially for my ex. I don't blame her for being upset, I am pissed. I dropped that evil woman almost 8 years ago and I am still living the nightmare.

So is that true that it will be dropped from my credit in one more year? I also have a problem with Equifax. They do not report my BK as being discharged. I filed a dispute and they replied saying, "A change was not made, it was determined that this entry does belong to you." No kidding! I know it belongs to me, they just didn't put the discharge date in. They also said, "If you disagree with this decision you may respond in writing... No more than 100 words... Any written response will be permanently attached to your credit report and will be displayed to anyone that checks your credit."

[Mr. Knowitall]

How could title have been transfered if they didn't release their lien, and why would they release their lien if the account weren't satisfied?

But take a look at this letter by the FTC:

1. What reporting limits does the FCRA provide with respect to chargeoffs, and how long have they been in effect?

Section 605(a)(4), which has been in effect since the FCRA became effective in April 1971, has always prohibited CRAs from reporting chargeoffs that are more than seven years old. Section 623(a)(5), which became law in September 1997, requires a creditor that reports a chargeoff to a CRA to notify the agency (within 90 days of reporting the account) of "the month and year of the commencement of the delinquency that immediately preceded" the chargeoff. Section 605(c)(1) provides that the seven year period begins 180 days from that date. Both provisions were part of the major revision to the FCRA that were enacted in 1996.

The creditor would be right if the charge-off occurred before that Act took effect in September, 1997; but you say that it didn't.