The Fair Credit Report Act (FCRA) controls what the creditors report to credit bureaus. They are required to report the information accurately. After getting your bankruptcy discharge, the creditors should report the discharged debts as discharged during bankruptcy and have zero balance. Dallas based bankruptcy law firm Recovery Law Group says that the best way to check that your creditors have reported the information accurately is to check your credit report after 30-60 days of receiving a discharge. You need to check all three credit bureau reports for any discrepancy in accounts included in bankruptcy and that they are showing zero balance after a bankruptcy discharge.
In case any creditor reports the status of your accounts incorrectly, you should dispute through FCRA. It is mandatory for the creditor to mention any debts included and discharged in bankruptcy with zero balance. Incorrectly representing them as having balance, late, being active, charged-off or as new debt should be reported to FCRA. In case you file for Chapter 13 bankruptcy, your debts don’t appear as included in bankruptcy with zero balance till the time you get your bankruptcy discharge. This takes place after the end of the repayment plan (5 years). However, as per the credit agreement, after you file for bankruptcy, the creditors stop reporting the debt to credit bureaus. In case they continue reporting, it should be as per the confirmed chapter 13 plan. This results in a slow and steady improvement of your credit report before even you get a discharge. Any dispute can be brought up through FCRA.
There are rules as to how creditors should report any debt that has been included in chapter 13 bankruptcy. In case you are contemplating bankruptcy, a lawyer will help you decide whether Chapter 7 or chapter 13 would suit you better. You can consult with experienced bankruptcy lawyers at 888-297-6023to discuss your case.