Creditors allowed to report to bureaus while in BK?

[ccsjoe]

Are creditors allowed to report derogatory information to the credit bureaus AFTER your filing of CH7 and them receiving notices (with me having proof they were received)? We have one creditor that was notified by the BK court via email, and has since then sent us two collection related letters plus, today, I just saw they posted a 30-day late on our credit report on 9/12, well after the receipt of the BK notice electronically on 9/1. I thought they were not supposed to report to the bureaus during the stay?

[IBroke]

Are creditors allowed to report derogatory information to the credit bureaus AFTER your filing of CH7 and them receiving notices (with me having proof they were received)? We have one creditor that was notified by the BK court via email, and has since then sent us two collection related letters plus, today, I just saw they posted a 30-day late on our credit report on 9/12, well after the receipt of the BK notice electronically on 9/1. I thought they were not supposed to report to the bureaus during the stay?

That is a "clean cut" violation of the Automatic Stay.

[ccsjoe]

So how do I proceed? I figure I can write to them with a copy of the BK Notice & delivery receipts from the court advising them of their violations and demanding immediate corrective action as well as an immediate cease to all collection activity?

[Katrina1978]

I like your question. My situation might not be the same, but I too have a similar situation. We filed for bankruptcy in July of this year and we are surrendering the vehicle that we currently have. I got an alert in my email saying that a negative report may have been reported on my credit report. I checked my credit report and of course the bankruptcy is listed but the finance company reported the debt as a chargeoff due to bad debt. Does that do anything different to the credit score? Is that normal reporting procedure? Just was curious.

[ccsjoe]

Hi Katrina, in your case what matters is: What date did you file and what date was the negative entry reported as of. Yes, it makes a difference in your post-bk credit score, and more work for you to clean up incorrect reportings later. Normal reporting procedure during an active BK is zip, zilch, nada, zero. Hence my question above in my original posting...these people had me almost confused.

[IBroke]

So how do I proceed? I figure I can write to them with a copy of the BK Notice & delivery receipts from the court advising them of their violations and demanding immediate corrective action as well as an immediate cease to all collection activity?

I'd say you send them a CMRRR, showing them proof of your BK-filing and telling them that they are currently in violation due to the automatic stay. You can also attach a copy of their credit-reporting, making your case. Tell them that they should correct the reporting accordingly and that any further wrong reporting and/or additional attempts to collect is going to have legal consequences (you reserve the right to sue).

[ccsjoe]

I'd say you send them a CMRRR

A what?? Sorry, my lingo is still rather infant regarding this.

Never mind, found it, got it...lightbulb went off. LOL

[IBroke]

A what?? Sorry, my lingo is still rather infant regarding this.

Never mind, found it, got it...lightbulb went off. LOL

Sorry, Joe...(:

I guess a was a bit too assumptious, thinking that a guy like you with more than 600 posts (and often giving great advice to others) knew that phrase. I'm just a lazy "typer"...LOL

[discouraged]

My lightbulb's off. What's a CMRRR? I'm a very new newbie. Sorry.

[discouraged]

OOOPS sorry - lightbulb's on. Certified Mail Return Receipt Requested.

[ccsjoe]

Sorry, Joe...(:

I guess a was a bit too assumptious, thinking that a guy like you with more than 600 posts (and often giving great advice to others) knew that phrase. I'm just a lazy "typer"...LOL

No problem my friend. Thanks for the compliment though, the bit where you refer to my delusional ramblings as advice. I may be a prolific researcher and poster, but I only found this board barely over a month ago, so effectively I am somewhat of a newbie.

[Katrina1978]

We filed July 21,2010 and we had our 341 August 20,2010. This negative report was reported on September 9th. While I went on there to double check the dates and I saw a new alert from Sallie Mae saying it was included in the bankruptcy. I didn't think student loans were allowed to be included. I took some new loans out this last year because I went back to school but I am not in repayment status yet and my old ones from years ago were already paid off. Any one have any idea what that means? So if they are reporting things on my credit report after the filing and before the discharge, is there anything we need to be doing?

[ccsjoe]

We filed July 21,2010 and we had our 341 August 20,2010. This negative report was reported on September 9th. While I went on there to double check the dates and I saw a new alert from Sallie Mae saying it was included in the bankruptcy. I didn't think student loans were allowed to be included. I took some new loans out this last year because I went back to school but I am not in repayment status yet and my old ones from years ago were already paid off. Any one have any idea what that means? So if they are reporting things on my credit report after the filing and before the discharge, is there anything we need to be doing?

OK, as far as the car is concerned I would send letters to the credit bureaus disputing the information and to the original creditor with a copy of your notice of filing where they are listed indicating that they are in violation of stay and demanding they correct their report immediately. Or else....(read around this post, there's references to the right section of 11USC that deals with penalties for stay violations, also under the collections tab.

No information on student loans, not my cup of coffee...anyone else here?

[Katrina1978]

Thanks for your help! I will definitely get started on a letter. I hate feeling like such a noob about stuff. ;)

[tcreegan]

several things

Hello cssjoe !!

You look like you have a nice batch of stay violations to take to court. I don't know if you file an AP or a motion for damages, that info is likely in your courts local bankruptcy rules and you can call the court clerk and ask what the procedure is. After making sure the company has been notified of the BK, record each communication. Record how much time you spend dealing with all of it. When you about a half dozen, get your attorney and go to court. Judges are very sympathetic to the debtors, awarding damages, some punitive, and paying for your legal costs. I say go for it! Get the big bucks !!

Hi Katrina1978,

We filed July 21,2010 and we had our 341 August 20,2010. This negative report was reported on September 9th. as a chargeoff due to bad debt. Does that do anything different to the credit score?

Yes, it lowers your score. Write letters to the big three: Experian, TransUnion, and Equifax and tell them to report the acct as 'included in BK' or IIB with a zero balance. There should be no "closed by issuer', 'debt sold' 'debt charged off' or other negative notation. Just IIB Keep writing until they do it. Persistence pays off here.


new alert from Sallie Mae saying it was included in the bankruptcy. I didn't think student loans were allowed to be included. They are not discharged in a BK, but are included as a priority unsecured creditor. They will likely keep reporting to the credit bureaus. You have one of two ways to go: You always paid on time, had no problems. Your loan might get an IIB notation. Write letters to Experian, Equifax, and TransUnion asking/telling them to remove the BK notation on the student loan. This will boost your score significantly. BUT....if you were always late, had other problems, you ask them to put the IIB notation on the account. All of this might take a lot of letters, the default answer you will get from them is "No" You keep insisting and after a while they do what you want b/c they are sick of you and want you to go away.

I took some new loans out this last year because I went back to school but I am not in repayment status yet and my old ones from years ago were already paid off. Any one have any idea what that means? So if they are reporting things on my credit report after the filing and before the discharge, is there anything we need to be doing?

Student loan outfits are not exactly on the same level when it comes to credit reporting. They basically do it b/c it helps students build credit, but it is not exactly on the top of their list. So check to see what they are doing, the old loans should show the payment history and notated "paid in full" or something similar. They should have no BK notation. The new loans might not have been reported (ask fin. aid. to have them reported) and they should show some clean credit to boost your score. If the credit reporting folks try to put a BK notation on it, tell them to remove it.

After a BK, go through your credit reports from teh Big 3 and make sure each acct discharged has a zero balance and is notated wiht IIB or included in BK. Make sure there is no 'closed by issuer' charged off' or other negative notation.

What a lot of blather, hope it helps somewhat,

Tom in Colo