Q: Do I need a bankruptcy lawyer or are the banks just allowed to keep kicking you while your down for the entire 7 years?
I filed a chapter 13 bankruptcy in Wyoming in 2009 I had a 5 year plan to repay 81K which I was able to pay this off in 3 years and was granted a discharge.
My problem is that I had 2 secured loans and one unsecured with my Credit Union and I had them and the 3 loans listed on my creditors list but they never even applied to the courts to receive any part of the money I paid back and I don't see where they filed anything with the courts and in my final paperwork from the trustee it shows "amount of unsecured claims discharged without full payment". Would that include the unsecured note listed for the Credit Union as discharged?
They continue reporting to all 3 agencies that 2 of the 3 notes as still derogatory, late every month,a monthly payment due, a balance still owed on them and the one secured note which I had voluntarily returned the collateral to them they are now showing it as an unsecured note. Can they report on me this way?
A:
If the debts were properly listed, the creditors failed to file a proof of claim and you received your discharge, the obligation to pay the debts were discharged. However, the liens on the collateral are still there as bankruptcy discharges debts but does not avoid liens unless you take certain actions during the chapter 13 case to have the lien avoided or set aside.
Once the discharge was granted, the debts should then be listed on your credit reports as included in bankruptcy with a $0.00 balance. You need to dispute the debt with the credit bureaus and retain proof that the dispute was made. Once the dispute is filed, the credit bureau contacts the creditor. If the creditor does not respond within 30 days or responds acknowledging your assertions in the dispute are accurate, then the information in the credit report is changed. If the creditor responds and asserts that the information on the report is accurate, then the bureau will keep the information on your report and you have a claim against the creditor under the Fair Credit Reporting Act (FCRA), provided the information in the report is not accurate. It is also possible that you have a claim against the bureau. If the information in your report is changed after the dispute, then your problem is resolved and in most cases, you have no claim.
Many attorneys that handle FCRA claims will handle the case on a contingency fee arrangement and/or with the agreement that the attorney will accept the fees that the creditor and/or the credit bureau is ordered to pay in the FCRA suit against the creditor. Also, most attorneys prefer that a client contact them before the dispute is made so that everything can be done properly.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
