Chargeoff After Bankruptcy

A lot of issues can arise with your credit report after filing for bankruptcy. There are number of guidelines that furnishers and creditors are required to follow. Unfortunately, they don't always comply with these requirements.

A common violation is that creditors continue to report a debt as charged off after you have filed for bankruptcy. A debt becomes charged off when the creditor stops trying to collect the debt.  This typically happens after a significant time has passed and the creditor no longer thinks they will be paid.  The creditor then signifies the debt as charged off which means the debt has been removed from the creditors balance sheet. Even though that is the case you technically still owe the debt.  When a debt is discharged in bankruptcy you no longer owe that debt. If a creditor forgets to change the charge off designation it inaccurately signifies that you still owe the debt. Which can impact your credit score and ability to obtain a loan.

Another common violation is to report a debt as active or to report it as delinquent and active after your bankruptcy. This gives the inaccurate impression that you are still responsible for a debt that has been discharged. After a bankruptcy, the debt should show a zero balance. Like above, showing a balance or showing that a debt is active when the debt is discharged can negatively impact your credit score or your ability to obtain a loan. Please contact us if your credit report contains any items that you believe may be inaccurate. We offer free consultations and we may be able to help.