[Bear_Slayer]

The original creditor/lender filed bankruptcy and informed credit bureaus that the loan was zeroed out. Subsequent communications /w the creditor indicate that they closed the account.

[mnehring]

The original creditor/lender filed bankruptcy and informed credit bureaus that the loan was zeroed out. Subsequent communications /w the creditor indicate that they closed the account.

A zero out statement on XX companies books doesn't mean the obligation is closed out or zeroed out. That just means that specific company doesn't own the obligation any longer. The debtor still is obligated to the loan, they will just have to determine who is the creditor to pay.