Credit Report Dispute - Did I open a can of worms?

[kmjatl]

After my Ch 13 discharge, I reviewed my credit reports and disputed all items that were showing balances and not IIB. A few of them were updated and two CCs were removed from TU.

Experian has updated, however one of the CCs is listed as "Remains". This particular credit union did not file a claim in my case, and it appears is now not acknowledging the debt has been discharged.

So today I took the next step and wrote directly to the creditor, explaining the debt was discharged in my chapter 13. I included a copy of my credit report, petition, notice of confirmed plan and notice of discharge (all with certificate of mailing by the BNC which shows the creditor was notified).

Now I'm wondering if they'll try to pull anything. The last activity on the account is 6/2008.

Any ideas?

[df04527]

I don't see why you would open a can of worms. The creditor either will agree with you and make the appropriate change to the credit report entry or they won't. Expect to not get a response however, check your report in a couple weeks. It may be updated or it they may decide to just delete it. Give them at least 30 days and then possibly call them if you see no change and explain it should be reported as IIB with a zero balance and no late payments after the filing date.

[justbroke]

Chapter 13s are asset cases. If you did not schedule the creditor in your Chapter 13, then the debt would not be discharged. If you did schedule the creditor, but they either did not file a claim or did not update their system to show that you were in bankruptcy, then they are out of luck. If they have not bothered you over the term of your Chapter 13, then it is highly likely that they had constructive or actual notice.

Constructive notice or the bankruptcy, even if they were not scheduled, would probably make that unsecheduled debt dischargeable in the Chapter 13.

Having wrote that, a notice from the BNC (Bankruptcy Noticing Center) is considered "actual" notice of the bankruptcy. Even if the debt was unscheduled, the debt would be discharged because the creditor knew of the bankruptcy. In your particular case, the debt is in fact discharged unless it was secured. Since you mention that it was a credit union, there may have been cross-collaterialization issues. Nonetheless, you should be able to assert that the unsecured debt was dischargeble and in fact discharged.

You should (must) send a certified letter, return receipt requested, asserting that they received actual notice and that the debt was discharged. Make sure you write, in that letter, that any collection activity or reporting as anything other than included in bankruptcy (with a $0 balance) or the removal of the tradeline, is a violation of the discharge injunction against collection. You should include a copy of the Discharge Order and the BNC "service" notice (for either or both the notice of bankruptcy or the discharge).

I would not give them 30 days. This is not a dispute. I would give them 7 days if I'm being mean, and 14 days if I'm being nice. They have the ability to use eOscar to have credit entries immediately removed.

Best wishes.

[kmjatl]

Chapter 13s are asset cases. If you did not schedule the creditor in your Chapter 13, then the debt would not be discharged. If you did schedule the creditor, but they either did not file a claim or did not update their system to show that you were in bankruptcy, then they are out of luck. If they have not bothered you over the term of your Chapter 13, then it is highly likely that they had constructive or actual notice.

Constructive notice or the bankruptcy, even if they were not scheduled, would probably make that unsecheduled debt dischargeable in the Chapter 13.

Having wrote that, a notice from the BNC (Bankruptcy Noticing Center) is considered "actual" notice of the bankruptcy. Even if the debt was unscheduled, the debt would be discharged because the creditor knew of the bankruptcy. In your particular case, the debt is in fact discharged unless it was secured. Since you mention that it was a credit union, there may have been cross-collaterialization issues. Nonetheless, you should be able to assert that the unsecured debt was dischargeble and in fact discharged.

You should (must) send a certified letter, return receipt requested, asserting that they received actual notice and that the debt was discharged. Make sure you write, in that letter, that any collection activity or reporting as anything other than included in bankruptcy (with a $0 balance) or the removal of the tradeline, is a violation of the discharge injunction against collection. You should include a copy of the Discharge Order and the BNC "service" notice (for either or both the notice of bankruptcy or the discharge).

I would not give them 30 days. This is not a dispute. I would give them 7 days if I'm being mean, and 14 days if I'm being nice. They have the ability to use eOscar to have credit entries immediately removed.

Best wishes.

Thanks for your reply. I will follow up with them in 7 days.

They were on the schedule (I sent them a copy with their name highlighted), they were notified of the Confirmed Plan (I sent them a copy of the BNC notice with their name highlighted) and the Discharge (I sent them a copy...you get the idea )

The certified letter I sent stated the debt was discharged and the copies show they received notice.

Cross-collateralization? OK, so they got the $20 in my account for the $10K debt.

[justbroke]

You need to be prepared to bring this to the next level. If they do not remove the entry in the 7-14 days, I would reach out to several BK attorneys to see if they'll take a stay violation on contingency.