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 is that the debt has a $0 balance and has been 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. Or you’ll go for a new job. Or you may want to rent an apartment. You may need to get new insurance. Whatever the reason, you will need to rely on your credit report.
And when you do, the lender or employer or landlord or insurance agent 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 that money - not gladly, but you’ll do it just to get what you need.
Creditors make billions of dollars each year from people who have been through bankruptcy. They count on it, and know they don’t need to do anything but sit back and wait for the cash to roll in.
But the good news is this - creditors who continue to report discharged debts as due and outstanding after bankruptcy may be in violation of not only the U.S. Bankruptcy Code, but also the Fair Credit Reporting Act. If so, you may be able to sue for not only a correction of the credit report but also for money damages.
Worried about legal fees? If you hire me for a case like this, I will never take an up-front fee from you. I make the creditors and debt collectors pay! So contact me immediately for a free, no-obligation consultation to discuss your rights and how I can help.