Credit Reporting Errors After Bankruptcy

It’s hard enough to worry about re-building your good credit after bankruptcy without having to worry about old accounts still showing up as past due. That’s why the Official Commentary to the Fair Credit Reporting Act states that once a consumer discharges a debt in bankruptcy, the only thing that can be shown on the consumer’s credit report is that the debt has a $0 balance and has been discharged in bankruptcy.  Your credit score can be adversely affected by bankruptcy errors in your credit report. Credit bureaus (such as Equifax, Experian, and Trans Union) have an obligation to provide accurate reports, free from any known errors.  Some creditors or buyers of debt will not report your discharge to credit bureaus, and they will instead "park the debt" during the bankruptcy and then try to collect the debt after it has been legally discharged.

 So Why Do Creditors Keep Showing Discharged Debts As Past Due?

Simple. It’s all about the money.  Creditors know that you will eventually want to buy a home or new car. Maybe you’ll apply for a new job or maybe you’ll want to rent an apartment. Whatever the reason, you will need to rely on your credit report.  And when you do, the lender or employer is going to tell you that you can’t get what you need unless you clear up that old bill by paying it. And you’ll pay the money - not gladly, but just to get what you need.  Creditors make billions of dollars each year from people who have been through bankruptcy and still end up paying the debts. They count on it and know they don’t need to do anything but sit back and wait for the cash to roll in.

What Should I Do About Bankruptcy Credit Reporting Errors?

Let us help you with our Post-Bankruptcy Credit Report Checkup.  We will walk you through the process to correct any bankruptcy credit reporting errors.  Download and complete the Post-Bankruptcy Credit Report Checkup forms and follow the included instructions.  No office appointment is necessary.

The good news is this - creditors and/or credit bureaus who continue to report discharged debts as due and outstanding after bankruptcy may be in violation of the Fair Credit Reporting Act.  If so, you may have claims against the credit bureaus to fix your credit report and for money damages. Worried about legal fees?  Don’t.  Federal laws make the creditors and credit bureaus pay for our fees!   Contact the Valentine Legal Group today so we can get started on helping you achieve the fresh start after bankruptcy that you deserve.