Experian still reports a past due balance

[Anonymous]

From Minnesota. I have a Capital One Auto Finance account that was included in my Chapter 13 in 2008.  They are still reporting each and every month as "petitioned for Chapter 13"  with a past due amount each month.  The amount they are reporting does not match what the courts says is past due.  I have spoke with Experian and they state that because the Chapter 13 isn't discharged they have the right to report it the way it is.  FYI, I am current with my Ch 13 payments and the Trustee does not indicate any past due amount. 

This seems wrong to me.  Any idea.   How can they report a incorrect past due amount.

[Anonymous]

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kklblue1 wrote:

Hi kk!  Welcome - Glad you're here and that you're posting.

From Minnesota. I have a Capital One Auto Finance account that was included in my Chapter 13 in 2008.  They are still reporting each and every month as "petitioned for Chapter 13"  with a past due amount each month.  The amount they are reporting does not match what the courts says is past due.  I have spoke with Experian and they state that because the Chapter 13 isn't discharged they have the right to report it the way it is. 

This is probably true.  Bookkeeping during a CH 13 is a bit of a bear.  There's the timing issue, for one.  When the trustee receives your funds, he typically holds them for some period of time (days, sometimes weeks, even longer).  By the time the trustee has distributed the funds, interest has accrued.  We had some accounts that were truly off.  When the BK was discharged, things lined up.  And because you're not able to check your finance account online (at least we couldn't during BK-nor did we receive paper statements from our auto loan account) it becomes even harder to keep track of.  We also had a hard time getting a straight answer from CSR's - in fact I can't think of a single instance where we got accurate BK reporting info from a CSR. 

FYI, I am current with my Ch 13 payments and the Trustee does not indicate any past due amount. You're referring to not having a past due account on your BK, correct?  That will not align with your creditors due dates and/or payments received by the creditors.

This seems wrong to me.  Any idea.   How can they report a incorrect past due amount.

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It looks like you're in the third year of your BK.  How much longer before you're discharged?  (I was counting down the days, that's for sure!)

[Anonymous]

I believe in the Spring of 2013 is my end date.  Yes I am looking forward to that.  Fortunately my credit scores have come up with work, but this one item from Capital One is the only thing hurting me so far.  Of course with the exception of the bankruptcy.

[Anonymous]

Unless you're trying to refinance a mortgage - or some such thing that requires trustee approval - during the BK, I'm not sure that I would worry about it.

If you're really uncomfortable about it, you could dispute the reported balance with the CRA's.  I still tend to think it's likely to be more of a trustee payment timing issue, though.  Is it outrageously off?

[kjm79]

If I recall, even under a Chapter 13 (we filed ch 13 in 2004 under the old bk laws, may be different now), that date of filing of the bk creates an automatic stay against ALL creditors and prohibits further collection activity.  Reporting a balance, past due, or even lates POST bk filing is prohibited.  You can't be punished because the trustee doesn't disburse immediately.  

In our particular situation, we were behind 8 months in our mortgage payments and included those arrears in our bk.  We continued making our reg monthly mortgage (without reaffirming) to the mortgage company once we filed bk.  Filed 11/04.  So we paid our mortgage payment to the bank and made our plan payment to the trustee.  Trustee did not make a disbursement until May 2005.  Mortgage co tried to list late payments from 4/04 through 4/05.  Discussed with our atty who advised we contact the bank and remind them we filed bk and reporting derogatory info POST filing violated the automatic stay.  Bank tried to say that the payments we were making directly to them wouldn't be applied until the arrears were paid.  And that they would continue reporting late payments until we were current.  It took a call from our atty to the bank to stop the derog reporting after the date of filing.  Once the atty made the call, the account changed to show the current balance on the loan and status was "debt included in wage earner plan".  Lates past 11/04 were removed and even updated to say, paid/paying as agreed.  Some of our accounts stated "included in bankruptcy", "included in wage earner plan", "closed/paid/paying as agreed" with a note that debt was discharged through bankruptcy.  Check with your atty, the laws MAY have changed, but unlikey in regards to the automatic stay provisions. 

[Anonymous]

Thanks for the response, that is was I thought too.  My attorney totally gave me the brush off.  I think I am going to contact the creditor and see what they say.

[Anonymous]

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@Anonymous wrote:

Thanks for the response, that is was I thought too.  My attorney totally gave me the brush off.  I think I am going to contact the creditor and see what they say.

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Whoa!  Slow down and measure twice before cutting once.   In our Ch 13 BK, we were expressly told not to contact the creditors directly.  Double check with your attorney.

I know you are frustrated with this, but in our experience - creditors can list the balances due them.  They are not 0 until the BK is discharged.  We went the rounds on this during our BK when we applied for a refi, and our mortgage lender made several calls to the CRA's regarding how several accounts were reporting.  Much to her and our surprise (and dismay) they were reporting correctly until the BK was discharged.  When our BK was discharged, they reported a zero balance due them.  Remember, most folks do not complete their BK's - and any amount you owe your creditors after trustee payments are made, is considered paid in full only when the BK is discharged.

It looks like the devil may be in the details.  But when you're involved in a BK, my (unsolicited) advice is to always work with your attorney. 

And to concentrate your efforts where they can do the most effective good.

Best wishes to you as you continue through BK and beyond!

[kjm79]

Absolutely agree with beamMEup, ALWAYS work with your and through your attorney.  Our atty is the one who advised us to call the bank first and discuss how they were reporting.  Our atty was the one who had to end up calling the creditor to get them to report correctly.  If you feel your atty is brushing you off, call a few other local attys and ask if what CapOne is doing is permitted.  Most will offer a free consult. 

[Anonymous]

I decided to let this one go.  I do not want to talk to the credit for fear they will report to the other 2 CRAs.  My attorney is no help whatsoever.  I will just wait. I have the court records proving my point.  I only have 23 payments left so its not THAT long.

Thanks for the help.

[kascls]

I would like to chime in on this even though it is an older thread.  I am also in the repayment plan.  I disagree with many on board who advise to ignore your credit report until you are discharged.  JThe simple fact that you are in a chapter 13 plan does not give creditors the right to report anything they want to.  You are still protected by FCRA and the bk automatic stay.  There is a lot of case law that has established the reporting of late payments after filing and past due balance is considered an act of attempting to collect on a debt.  This violates the automaic stay.  The reported balance due is certainly disbutable.  Essentially, the agreement you have with a creditor has been re-written by a Federal BK judge.  Payments and balance due, if reported, should reflect the revised (via bankruptcy) amounts.  The rationale that creditors can report the original payment and balance info since if the BK is dismissed this would be the amount owed is ridiculous.  If the BK is dismissed, then the creditor can report what is owed.  Until then, they are required by federal law to report accurate information

Just because you are within the plan does not create a creditor freeforall with regards to your credit report