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Bad debt/Collection showing on my report after bankruptcy

Regular Contributor

Bad debt/Collection showing on my report after bankruptcy

It's been over a year since my bankruptcy has cleared. I thought everything was taken care of and cleaned up. I just noticed a Bad debt/collection on my report. It is from best buy and it was included in my bankruptcy. Are they allowed to report it as that? Or what should I do? I've already sent them a letter and had no response.
BK 7 Filed: 08/07/15
BK 7 Discharged: 11/04/15
Discharge Scores: Equifax (572) - TransUnion (586) - Experian (511)
Goal: 700+
Credit Cards: NFCU nRewards ($500) - CapOne Platinum ($300) - CapOne QuicksilverOne Rewards ($300) - Victoria's Secret ($250) - Firestone ($1200)
Auto Loan: NFCU ($34.6K @ 7.7%)
Message 1 of 6
5 REPLIES
Senior Contributor

Re: Bad debt/Collection showing on my report after bankruptcy

It's my understanding that no, they cannot. Anything included in the bankruptcy is NOT to be reported.
 
Send a dispute letter to the CRA. Tell them the account was included in your bankruptcy and therefore should be removed.
 
Message 2 of 6
Member

Re: Bad debt/Collection showing on my report after bankruptcy

If a student loan shows included in a bk, can that be deleted from your file? It was actually taken over by another bank so what should I do about it reporting in bk?
Message 3 of 6
Senior Contributor

Re: Bad debt/Collection showing on my report after bankruptcy

Did some more digging. Accounts included in a BK can be listed, but anything other than a 0 balance and "Included in BK" is incorrect reporting. Can't list it as a charge off or collection. Creditors have to charge off the debt, but they cannot report it as such unless it was charged off BEFORE the BK was filed.
Message 4 of 6
Moderator Emeritus

Re: Bad debt/Collection showing on my report after bankruptcy



Noah_Bodie wrote:
Did some more digging. Accounts included in a BK can be listed, but anything other than a 0 balance and "Included in BK" is incorrect reporting. Can't list it as a charge off or collection. Creditors have to charge off the debt, but they cannot report it as such unless it was charged off BEFORE the BK was filed.


 
This is true but I no I have a nightmare with one medical collecvtin.  My BK was filed in 11/2000 and this creditor keeps updating the account to show a blance due.  They initially updated it to show the wrong date of BK .  I cannot tell you how many times I disoputed this with EQ each time they would correct it and then within 30 days the balance would be back.  Finally told them to correct it or delete it, which you can demand deletion if the creditor fails to report correctly, lets see what happens.  I think this is somewhere between the 7th and tenth time this has happened with this creditor.

Message 5 of 6
Senior Contributor

Re: Bad debt/Collection showing on my report after bankruptcy

There is caselaw for this. Goodfellow vs. Discover Financial Services
http://207.41.19.195/scripts/show_matches.pl?file=decisions/20030903-pk-TERRI_J._GOODFELLOW.html&str...

 

Another is:
Discover Bank v. Owens (2004), 129 Ohio Misc.2d 50, 2004-Ohio-7333

 

There is also an FTC staff opinion letter, Brinkerhoff-Lovern, on the subject. Still searching for it online.

Message 6 of 6