According to the Fair Credit Reporting Act, (FCRA), a discharged debt in bankruptcy should be shown as having zero balance and the consumer should not be any more liable for it. (See FTC OSC section 607, item 6)
Some of the common mistakes are listed below-
- Forgetting to report the payment history of all of the debts that you reaffirmed.
- Continuing to report a balance due.
- Reporting a discharged debt during bankruptcy case as “charged off”.
- Reporting a wrong date for your bankruptcy filing.
- Mistaken identity- when a family member or your spouse shows bankruptcy when they did not apply for one.
- Wrong DLA (date of last activity) or delinquency date after the filing of your bankruptcy case.
- The date of bankruptcy is wrong or wrong chapter was filed or date reported, or the wrong payment plan amount
- The debt that is sold to a debt collector or debt buyer is still using the debt as a derogatory account instead of it being discharged under bankruptcy.
To sum it all up, filing for bankruptcy protects you from the collection of debts that were discharged, it also protects your credit report from degrading by wrongful reporting. If you find any mistakes in your credit report after filing for bankruptcy, contact an FCRA attorney immediately and seek help.
If you want to file for bankruptcy do not hesitate. It is all right to file for bankruptcy and start a new financial life. If you live in or near Los Angeles & Dallas, TX, contact Recovery law group-(888-297-6203).