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Posted in Bankruptcy
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Question By
wtfcredit

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Collection Agency Still Reporting as "Open" after Chapter 7 Bankruptcy?
I filed chapter 7 bankruptcy so obviously the debts were discharged. However, a few collection agencies continue to report the accounts as "open" even though they were discharged.

How can I get them to stop as it must be hurting my credit score?

Thank You

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Most Helpful Response

Stop the abuse

Helpful to 187 out of 206 people

Yes, unfortunately, that's a common issue with collection companies who I've experienced breaking the law on numerous occasions.  Providing a copy of the bankruptcy information showing the creditors in question to the bureaus should get that straightened out.  If that fails to resolve the issue, legal action against the creditors may be necessary.

Most reputable credit improvement experts provide a complimentary evaluation (such as ours) I'd be happy to assist you further if you need professional guidance.  

PS.  yes, you are correct also that it is hurting your credit which in turn is grounds for demonstrating financial harm and legal grounds for suit but you must show that you've provided reasonable opportunity for correction and establish a good paper trail in that effort.

1 Contribution
16 People Helped
Helpful to 16 out of 24 people

So how does one go about getting the copy of the bankruptcy to the creditors?  Do we fax it, email or what?  I filed 6 years ago and still have 1 showing on my report that has a zero balance and is still open! I am working hard at getting my score back up and now this is keeping it low.  Can you please be a little more specific in how to take care of this?  Thank you

Reply by
frodgers01

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8 People Helped
Helpful to 8 out of 14 people

Going through the same problem with a rental company. The account was discharged 5 years ago in chapter 7 bankruptcy but appears on equivax as open account collection in remarks tjat says bankruptcy.  I disputed it with Equivax and they refused to remove it. I did another dispute and submitted them a copy of my discharge papers today. So, I may be contacting you if they refused to remove it again.

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51 People Helped

Bankruptcy 7

Helpful to 51 out of 64 people

I filed in  2010 and debt including mortgage was discharged.  The loan was sold numerous times.  I was never late on original mortgage.  The company they sold it to shows missing payments for about 36 mos after discharge.  Almost five years since filing and just got lis pen des .  How do I get these late payments off as debt was discharged?  Thanks for your expert guidance.  Sarah.

2 Contributions
73 People Helped

Helpful to 48 out of 60 people

I filed bankruptcy in Oct. 2005.  It's still showing on my credit report.  Are they going to wait until Oct. 2015 to take it off?

Reply by
llowejack2

2 Contributions
20 People Helped
Helpful to 15 out of 24 people

If u filed a chapter 7 it takes 10 years to come off. If it's still show on your credit report after that you can write they will check it a remove it from your credit. Good luck.

Reply by
Karenag51

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21 People Helped
Helpful to 13 out of 24 people

It takes about 7 - 10 years before it is completely taken off your credit history and you start to see an improvement in your credit score - Be Patient!

Reply by
VIOLA111

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4 People Helped
Helpful to 2 out of 8 people

They will wait until Oct 2015 to remove it.

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33 People Helped

shopping for a new car

Helpful to 33 out of 44 people

It's been 2 years since my chapter 7 discharge date.  Do I have any leverage when going into a dealership to purchase a new vehicle.

Also my pymt. history is 100%  meaning to that my history for paying my debts are good.  Any advice.......?

Please respond.  Thank you in advance  and kind regards.

Counselorcg@yahoo.com

Reply by
llowejack2

2 Contributions
20 People Helped
Helpful to 5 out of 8 people

You will need a good down payment the more the better.

1 Contribution
24 People Helped

Discharge of Bankruptcy

Helpful to 24 out of 32 people

 My bankruptcy was discharged ( Chap 7) over a 1 1/2 ago , why is my credit score being reported as very poor?

Reply by
Karenag51

2 Contributions
21 People Helped
Helpful to 8 out of 13 people

It takes about 7 years before it is completely taken off your credit history and you start to see an improvement in your credit score - Be Patient!

Top Contributor

Reply by
sarasf

40 Contributions
39 People Helped
Helpful to 27 out of 33 people

The public record of your Chap 7 will be removed 10 years after the date the petition was filed.  But, individual accounts that listed the account as included in BK will drop off after 7 years.

As time passes, the negative effect of the BK will decrease.  You will probably see an improvement at the 2 year mark.  But, to really improve your score, you need to actually use credit responsibly.  Get a couple of credit cards with no annual fees, make a small charge on each (do not exceed 10% of the available credit) every month and pay them off in full.  If you do that,, you should see improvement.

1 Contribution
17 People Helped

Collections After BK Clarification

Helpful to 17 out of 25 people

I have collection accounts that were discharged in bankruptcy.  Some are reported as open collections with a zero balance and Chapter 7 notated in the remarks, and some are similarly reported except as closed collections.  Since the underlying debt was discharged in bankruptcy, shouldn't thet all be reported now as closed collections?  I am not clear why some are now reported with a zero balance but still show as being open.

Reply by
boog9565

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

did you figure out why it does this? Mine is doing same thing.

Reply by
jules1267

5 Contributions
5 People Helped
Helpful to 2 out of 3 people

Can anybody answer this question, I don't see any answer for it and I am going through the same thing.  My chapter 7 bankruptcy was discharged in 2010 and I have 3 accounts that show "included in bankruptcy", but still have a status as Opened, they are obviously closed, and they are showing last reported in 2012 which doesn't seem correct either since they were discharged in 2010.

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Reply by
twosmartboys

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14 People Helped
Helpful to 3 out of 5 people

I am also having this issue. Does anyone know why an account still shows open but it shows it was included in your bankruptcy. Any ideas or suggestions. I did a dispute with it believe TU which came back with nothing changed. Creditor states it's still open. When I called the creditor they said they show it being reported as closed?? Suggestions?

1 Contribution
2 People Helped

Deragatory Remarks after BK

Helpful to 2 out of 3 people

I had a bankruptcy discharged in June 2009. I had a car loan, which was included in the filing, however I chose to jeep the car and made payments on it up until I traded it in in 2010.  I had no late payments on that loan, ever. Now it is showing on my credit as "Account Closed-Deragatory" and under remarks, they noted a had a Bankruptcy in 2009.  

The loan company, Wells Fargo, says it is the credit bureau making the "deragatory" comment.  Either way, since I paid on time, and paid it off instead of discharging the loan through bankruptcy, shouldn't my credit report reflect this?  Why would they still be able to report this as deragatory? 

Reply by
angelnpeyton10

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1 Person Helped
Helpful to 1 out of 2 people

I would dispute that and show proof of payments, either they need to remove the negative remarks or remove the account completly. 

1 Contribution
0 People Helped

same problem!!

I'm having this exact same issue...3 different items, included in my bankruptcy from 2014, showing "Open, Included in Bankruptcy". They should be reading as closed. My score is 681 which I've worked hard to get and I know this is keeping it from getting higher!

2 Contributions
7 People Helped

shortyjls67@yahoo.com

Helpful to 1 out of 3 people

I have a bankruptcy ch 7 that was discharged in 08 and I have one creditor still showing as open (ATT). What can I do to get that off my credit? Or how do I go about getting this corrected?  For this is hurting me in getting an apartment.

Top Contributor

Reply by
Halle123

11 Contributions
327 People Helped
Helpful to 1 out of 4 people

I recall finding an at&t account on 1 of my credit reports when I'd 1st discovered my identity had been stolen. But, the at&t deal wasn't part of the theft... What it was, was an oooold landline account from way back in 1997!! Ha!! I believe it was for $20.-something dollars, and so when I had to dispute the identy theft accounts, (totalling over $20,000.!!) I went ahead and "questioned" the bureau reporting it, who agreed it was long-past due of expiring. The thing about it was I can't recall ever having any at&t account in my name.

If the amount they're stating that you owe them isn't correct you need to A.- Dispute it. and B.- Phone the Federal Trade Commission and have them make a report that they'll send to you in pdf form. Complete any section they left opened, and go have it notarized. Now you have an affidavit from the FTC to help your dispute, in case they want to continue to claim that you really are indebted to them in that large of an amount.

A landlord wouldn't normally flat-out refuse to rent to a prospective tenant due to one collections account, although the city I live in may be worlds different from most others. A co-signer, or paying a deposit that matches one-months rent, seems like a reasonable option you might like to begin considering if you're really in a big big hurry to move.

Cheers! And, all the best!!

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