Removing a collection notice from AFTER discharge?

[Hopeful09]

Hello -

I've posted on here some time ago and need some more advice if possible.

We surrendered a vehicle to our local credit union in our Chapter 7 last year. We filed in April and were discharged in July - the vehicle was surrendered in July but we had been current on it until then.

AFTER our discharge - I believe in September 09, we received a collection notice from a local company for the balance of the car loan minus the amount they got for it at auction. I immediately called them and explained the situation, I contacted our attorney also and got copies of all the bankruptcy documents and brought them to the collection agency. This was within a week of finding out the about the collection - when I got to the collection agency they told me they had already taken care of it.

I noticed in November that it was still reporting on my credit reports as an open collection for about $4k! I contacted my attorney again who told me that since they were no longer trying to collect from me, it wasn't a problem - BUT it is! I'm not buying anything so I don't really care about that, but my husband works in a field where that could hurt him if he needs to apply for a new job and we are wanting to move out of state, so he will be doing this.

I disputed it through the credit reporting agencies and it came back VERIFIED - how the heck can they do this? I understand that collections will still be reported if they happened before the bk filing, but I know they shouldn't happen for discharged debts afterwards.

Aside from reopening our bk case - which would entail likely hiring a new attorney since the other one thinks it's no problem - what can I do? Should I try to dispute again to the original creditor or should i dispute in writing rather than online? Or hire an attorney?

I'm so frusterated!

[justbroke]

I would go back to your attorney or ask him to write a demand letter to the CA to remove the entry from the credit report. If the CA refused, then have your attorney to help you or recommend an attorney who will represent you on contingency for a Motion for Sanctions.

Leaving that on your credit report is a willful attempt to collect on the debt -- at least the majority of courts believe so.

[aces67]

Call your BK attorney. He should be able to take care of it for little or no money.

[StartingOver08]

If your BK attorney will not take care of it, do this:

1) You have a written record of your dispute to the CRA's right? Letter sent CMRRR and a copy of the green card.
2) Send a written dispute to the CA, again CMRRR, telling them to remove it from your credit reports as it is a violation of the discharge injunction (the BK courts consider it a form of collecting after the debt is discharged)
3) If the CA will not remove it from your reports, bring a suit. There is $$ in it for you and sanctions against the CA. BTW, if your attorney won't do it, find another one.

If you ignore it, it will stay on your reports. Go here to look up property BK reporting and the relevant case law: http://www.myfaircredit.com/forum/viewforum.php?f=6