How Do I Fix False Credit Reporting After A Bankruptcy Discharge?
This is a problem that was very common several years ago and then it improved but now seems to be coming back with a vengance: companies who have their debts discharged are refusing to properly report those debts on consumers’ credit reports.
If you have received a discharge from a chapter seven or chapter thirteen bankruptcy, then your credit report should list all of the discharged accounts as having a zero balance. Now, if you reaffirm the debt then this is a different matter.
But assuming you did not reaffirm the debt, then you don’t owe it anymore. And the creditor or any collector can’t try and collect it from you.
This means the collector or the creditor can’t put a balance on your credit report to pressure you into paying the debt.
This is called “parking” an account on your credit reports. The idea is eventually you will need a higher credit score for a loan, an apartment, a job, etc and you will be forced to pay the creditor or collector to “fix” your credit reports.
See, that’s why this is illegal. That is why the creditors and collectors love to put false balances on your credit reports. It brings all of this pressure to bear on you and it brings all sorts of profits to the creditors and collectors.
If you are facing this, you should get with a consumer attorney in your area. Normally, but not always, the best way to handle this is to dispute the false balance with the credit reporting agencies (Equifax, Experian, Innovis, and Trans Union) and copy the creditor or the collector (known as the “furnisher”). Explain when you received your discharge and ask the credit reporting agencies to fix this false entry on your reports.
If it is not fixed, you may have the right to sue the furnisher (creditor or collector) and the credit reporting agencies who kept this on your reports. Get with a consumer attorney to advise you of your rights.
You will be helping yourself and doing your part to help encourage these big companies to stop breaking the law….
If you live in Alabama and have had problems with credit reporting errors and have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.
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