Posted by Curmudgeon on 11/16/05

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Kinda curious how many of you thought of the consequences
of a typical technique. Its common practice to list all
possible debts of the debtor--makes the bankruptcy look
better because of the large amount of debt. But if the
debt has been paid in full--even to a collection agency--
it's no longer a legal liability. But by listing it on the
bankrupcty, the creditor (collection agency) is notified
of the filing and notes the file accordingly. That
includes showing the debt as having been included in and
discharged in the bankruptcy. The malpractice---you've
converted a paid account (which scores well on the credit
score) into a bankruptcy-discharge account (a serious
negative on the credit score). It may not make a nickel's
worth of difference in the long run, but did you think of
it?

A minor incident of malpractice, 11/16/05, by Curmudgeon.

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