How to Improve Your Credit Score After Bankruptcy-Part 3

Dispute All Reporting Errors Discovered

 It does no good to review your credit reports if you don’t dispute the errors you find.

1. Unsecured debts that were included in your bankruptcy should be reported as “included in bankruptcy,” “Chapter 7 or 13 Bankruptcy” or “Wage Earner Plan.” If the bankruptcy isn’t mentioned you should dispute the account.
2. Debts included in your bankruptcy that were discharged should have a -0- balance. If they show a balance owing then the account should be disputed.
3. Debts included and discharged in your bankruptcy should have no other derogatory statements in the “Status” line other than the bankruptcy notation. If the status line includes things like “collection account,” “past due,” or “Charge off” it should be disputed. You should argue that it can't be a collection account because the creditor can't try to collect it, it can't be past due because nothing is owed, and it can't be a charge off unless it was was reported as a charge off before the bankruptcy was filed. If it is reported as a charge off after the bankruptcy is filed, it would be a stay violation.
4. If you have forgotten to list a creditor in your bankruptcy you should immediately send them a copy of your discharge by certified mail. There is case law in some jurisdictions that says in a Chapter 7 no asset case the unlisted unsecured debt is still discharged. So, give the creditor 60 days after you send it a copy of the discharge and if the reporting is not corrected, dispute it. If the creditor doesn’t respond within 30 days the reporting will be removed. If the creditor responds and confirms the reporting then you should consult a consumer attorney to help you get it removed.
5. Debts you have incurred since the bankruptcy was filed won’t be discharged, but you can still dispute them if they are reported incorrectly. If you don’t recognize the account as your account, the amount is incorrect, or there is something else wrong with the way it is being reported you should dispute it.
6. If you are in Chapter 13 each credit line included in the bankruptcy should show a status of “Chapter 13" or “Wage Earner Plan” with the current balance due on the debt after any payments made by the Chapter 13 Trustee. When you file chapter 13 and a plan is confirmed all defaults on your debts are cured so there should be no other negative remarks in the status line such as “Collection Account,” Past Due” or “Charge off.” If there are dispute them.
7. In Chapter 13 cases review your credit reports again 3-6 months after your discharge to make sure the discharge is reported correctly

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