Modesto, CA asked in Bankruptcy for California

Q: Can a credit card company included in a chap 7 bankruptcy from 2016 still report as current account on your report?.

I filed for chap 7 bankruptcy in 2016 and it was discharged.

I’m checking my report and it shows that 3 of the accounts I filled for are reporting as current accounts that will be dropped by 2023.

The others are reporting as included in bankruptcy and will be dropped by 2023.

My main question is can they legally report as current accounts still?

And does that effect my credit for good or bad ?

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4 Lawyer Answers
Harlene Miller
Harlene Miller
Answered
  • Bankruptcy Lawyer
  • Irvine, CA
  • Licensed in California

A: The creditors should not be reporting on your credit report other than to indicate that the debt was included in a bankruptcy. You can file a dispute with the credit reporting agency. Although, if the accounts are being reported as current and not delinquent, I don't know that they are negatively impacting your report. Does the reporting identify a balance due or any other information?

Peter Maurice Lively agrees with this answer

David Luther Woodward
David Luther Woodward
Answered
  • Bankruptcy Lawyer
  • Pensacola, FL

A: Ms Miller is correct. What's your problem. Contact the credit bureau because this not a legal problem

Bahram Madaen
Bahram Madaen
Answered
  • Bankruptcy Lawyer
  • Sunland, CA
  • Licensed in California

A: The answer is no. The debt originated before filing bankruptcy should have been discharged by your bankruptcy discharge. You can send a letter to the creditors and include the bankruptcy discharge letter you received from the court, and ask them to clear the history. Or, you can dispute their charges with the credit reporting agencies. It should be an easy process.

Let me know if you need help. Thank you very much.

Aaron Michael Lloyd
Aaron Michael Lloyd
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Redlands, CA

A: Are balances being reported? If not, and the accounts say current is there a reason why you could not want that reported? Usually an account being reported as current is a good thing and helps your score.

Also, if at the time your filed bankruptcy those 3 accounts had zero balances then it is possible the credit card company did not close your account. You can always close your account directly with the credit card company, however, if no balance is being reported and your account status is current, this should help and not hurt you.

On the other hand, if they are reporting a balance owed from a pre-bankruptcy filing debt then you would want to contact the credit bureaus and dispute the balance being reported as being discharged in your chapter 7 bankruptcy case. Pre-petition credit card balances discharged in bankruptcy cannot be reported so you would need to dispute that.

I hope this helps.

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