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New Member
Posts: 10
Registered: ‎01-24-2013
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Discharged debt showing on credit report

I filed chapter 13 in 2004.  one creditor did not file for the entire amount of the loan.  when I was discharged in 2008, that creditor reported the unclaimed amount as a charge off.  Equifax refuses to remove it because the creditor says its valid.  i even sent equifax copies of the bankruptcy showing the account included....  is what the creditor did legal?  not claim full amount and then charge it off?

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Valued Contributor
Posts: 2,400
Registered: ‎11-29-2012
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Re: Discharged debt showing on credit report

I would say no, but I'd check with an attorney to be sure.


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New Member
Posts: 10
Registered: ‎01-24-2013
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Re: Discharged debt showing on credit report

[ Edited ]

i called an attorney and he said that it didnt sound like it should be happening.  oh and when i sent equifax my bankruptcy docs to prove the bank was wrong, equifax add the bankruptcy back to my credit report with a filing date of the day i was discharged.....  it had already fallen off because it had been 7 years since i filed.... I learned that the consumer financial protection bureau regulates the CRA's.  I filed a complaint with them about what equifax is doing to me.  http://www.consumerfinance.gov/

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: Discharged debt showing on credit report

Yep it sounds illegal. You usually pay a % of the total debt owed to most debtors in Ch 13 BK unless it was an auto loan as they changed the rules to require full payment of the auto loan vs fair market value BUT you filed before the new law went into effect so even that would be illegal. If they didn't file the right amount with the courts, that is the creditor's fault, not yours. Look up your final payment letter from the trustee. If the balance paid equals the original amount to be paid by the trustee, then you need an attorney.

I should have asked this in the beginning. Did you finish all payments required to the trustee by the plan? I want to make sure you were discharged and not dismissed.
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New Member
Posts: 10
Registered: ‎01-24-2013
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Re: Discharged debt showing on credit report

yes i was discharged.  it looks to me buy the trstees final report that the credit was paid more than their oringinal claim amount.  Did i mention that it appears that the creditor is reporting the charge off under a different account number as well?

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Posts: 5,329
Registered: ‎03-06-2010
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Re: Discharged debt showing on credit report

Definately go back to your attorney so that he can get this in front of the BK court. Sounds like this creditor needs sanctions placed against them. I'm sure your attorney will want to send a letter to the creditor first and the creditor should back right off and remove the TL. If they don't - go after them.

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Registered: ‎12-19-2012
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Re: Discharged debt showing on credit report

+1
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Moderator
Posts: 22,406
Registered: ‎01-17-2008
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Re: Discharged debt showing on credit report

No, it is not legal.

 

Chapter 13 Bankruptcy is a repayment plan, but general unsecured creditors who are not paid in full lose the right to collect the balance of their debt upon the successful completion of a Chapter 13 Bankruptcy.

 

Most Chapter 13 bankruptcy cases pay out less that 100% to the general unsecured creditors. General unsecured creditors include, for example, credit cards, medical bills, personal loans, utilities, payday loans and personal signature loans. If these types of debts are not paid in full by the completion of the Chapter 13 Bankruptcy plan payments, the remaining balance is eliminated, or discharged.

 

 

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: Discharged debt showing on credit report

What we are saying is it is illegal for a creditor to try to get more money than what was repaid through the plan after a Chapter 13 is discharged.
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New Member
Posts: 10
Registered: ‎01-24-2013
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Re: Discharged debt showing on credit report

ok just to clarify.  This was a secured creditor and they are not trying to make me pay the money, they are just reporting a CO on my credit for an amount they say they didnt get through the court.  I did call my attorney and he didnt sound interested in pursuing it.  said he was not familiar with the credit reporting laws or something.  maybe i didnt explain it well enough to him.

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