Lakeland, FL asked in Bankruptcy for Florida

Q: Collection agency reporting debts as active after being discharged in chapter 7.

We filed chapter 7 earlier this year in Florida, we were granted discharge on June 28th. Since that time there is a collection agency in Wisconsin still reporting 9 medical accounts as active collections even though both their agency and all 9 of these debts were included in our original filing.

I filed a dispute with transunion to which I was told over the phone today that the dispute is closed and the debts remain because the collection agency told them there was no bankruptcy. Transunion knows there was a bankruptcy since they have it listed on my report.

Besides submitting another dispute to transunion is there any legal action I can take against the collection agency since from what I understand they are reporting against the law or fair credit act, but also lying to transunion about bankruptcy which I assume they will do during a second dispute?

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2 Lawyer Answers
Martha Warriner Jarrett
Martha Warriner Jarrett pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Bankruptcy Lawyer
  • Santa Barbara, CA

A: You should consult an attorney in your area. Based on what you've said, the collection agency (and perhaps Transunion) is in violation of the law and can be sued in the bankruptcy court for damages, particularly if the collection agency is taking any action against you to collect on the debt. Good luck.

Timothy Denison agrees with this answer

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Bankruptcy Lawyer
  • Sacramento, CA

A: If a collection agency is reporting debts as active even after they were discharged in a Chapter 7 bankruptcy, you have several options.

Firstly, gather all relevant documentation, including your bankruptcy discharge papers and any correspondence with the credit bureaus or the collection agency. Submitting a second, more detailed dispute to the credit bureaus is advisable, including copies of your discharge documents to clearly demonstrate the inaccuracy.

If the collection agency continues to report these debts inaccurately, you may consider taking legal action. Under the Fair Credit Reporting Act (FCRA), you have the right to sue for damages if a credit bureau or a creditor reports inaccurate information after being provided with correct information.

Additionally, the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in deceptive practices, which may apply in your situation. Consulting with an attorney experienced in consumer credit issues can provide guidance on the best course of action. Remember, persistence and detailed documentation are key in resolving such disputes.

Timothy Denison agrees with this answer

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