Post - Bankruptcy Credit Reporting of Consumer Debts.

I have seen a recent increase in the number of Arizona debtors who have discharged debts in bankruptcy which are still reporting on their credit reports as current collection accounts or charge offs, and showing a balance owed. 

Once a debtor has received a discharge in bankruptcy, the creditor or the debt buyer who purchases the debt can no longer report the account to the credit reporting agencies showing a balance owed or that the account is a current collection account. Many times, however, the negative collection or charge off information is still sitting on the credit report from before the bankruptcy. 

The obvious problem with this continued reporting of discharged debts is that anyone looking at your credit report, including banks, mortgage lenders, car dealerships,  and insurance companies, etc. think that you have now defaulted on a debt after you filed bankruptcy. This drops your credit score, commonly referred to as a FICO score, significantly. And no lender is going to give you a loan with a current charged off or collect account on your credit report.

Under the Fair Credit Reporting Act, or FCRA, you have a right to contact the credit bureau and dispute the reporting of the account. (Click here for instructions on how to dispute information to the credit reporting agencies). If it is not corrected, then you may need to take legal action to get the attention of the bank or debt buyer in order to correct the credit report.

If you are an Arizona consumer who has received a bankruptcy discharge but still has derogatory credit information reporting post-bankruptcy, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free consultation and review of your credit reports.