Sunday, April 09, 2006

Discharged Debt Still On Credit Report

Question: I filed for Chapter 7 bankruptcy two years ago and received a discharge of all my credit card debt. One credit card company still reports me as being past due every month. If it was discharged, can they still report me each month as late?

Answer: Assuming that you properly listed the debt in your bankruptcy, the credit card company should report the balance owed as zero and it should also correct your credit report to show that the debt was discharged in bankruptcy. You should send a certified, return receipt letter (keep a copy) to the credit card company and enclose a copy of your discharge. Demand that they correct this entry on your credit report. If they fail to do so, contact a local bankruptcy attorney for further assistance. Failing to correct a credit report can be a violation of the discharge order and the bankruptcy court could order the credit card company to pay you damages if they fail to correct the error.

You should also write a dispute to the three credit reporters: Experian, TransUnion and Equifax, and have them insert it in your report, i.e. "This debt was discharged in bankruptcy on _____ (date)." For further information on how to get a free copy of your credit report and further assistance, please click here to read our previous article on disputed inaccurate information on your credit report.

This publication is NOT INTENDED TO SERVE AS A SUBSTITUTE FOR LEGAL ADVICE. Please consult with a licensed attorney if you require legal advice.

About the Author: Carl H. Starrett II, has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

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