{"id":413910,"date":"2026-09-23T10:18:21","date_gmt":"2026-09-23T15:18:21","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/?page_id=413910"},"modified":"2026-09-23T11:03:31","modified_gmt":"2026-09-23T16:03:31","slug":"what-to-do-when-creditors-keep-reporting-discharged-debt","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/after-bankruptcy\/what-to-do-when-creditors-keep-reporting-discharged-debt.html","title":{"rendered":"What To Do When Creditors Keep Reporting Discharged Debt"},"content":{"rendered":"\n
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What To Do When Creditors Keep Reporting Discharged Debt<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

When creditors fail to update credit reports<\/span> post-bankruptcy<\/span>, they violate the Fair <\/span>Credit Reporting<\/span> Act<\/span> by reporting inaccurate information<\/span>. Consumers can file a formal dispute with credit bureaus<\/span> to force corrections, such as updating account balances to zero and marking them closed. Persistent violations may allow affected individuals to sue for actual and statutory damages.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Filing for bankruptcy allows you to either get rid of your debt or reorganize it so that it\u2019s more manageable. If you file a Chapter 7 <\/span>bankruptcy<\/span> case<\/span><\/a>, the trustee will sell any non-exempt assets to pay your creditors. Once this is done, the court will discharge any remaining debt.<\/p>\n

With a Chapter 13 <\/span>bankruptcy<\/span> case<\/span><\/a>, the court doesn\u2019t liquidate your debt. Instead, the trustee negotiates a repayment plan for what you owe. This plan will last anywhere from three to five years, depending on how much debt you have and what you can afford to pay each month. After successfully completing your repayment plan, non-priority unsecured debts are discharged.<\/p>\n

Creditors must update your debts. If you completed a Chapter 7 filing, your creditors must report your debt as discharged<\/a>. If you filed Chapter 13 and are in the middle of your repayment plan, creditors must update your credit report<\/span> to reflect this fact.<\/p>\n

Not all creditors report accounts the way they\u2019re supposed to. If your creditors continue to report your debts as late or charged off<\/span>, they are violating several laws.<\/p>\n

This article examines and explains what creditors are required to do once your bankruptcy is complete. It also discusses your legal options when creditors fail to update your credit report<\/span><\/a> to reflect a discharged status.<\/p>\n

If you believe your creditors are misreporting your post-bankruptcy<\/span> accounts, contact a local bankruptcy attorney<\/span><\/a>. They\u2019ll review your case and explain your options.<\/p>\n

Impact of Negative Credit Reporting<\/span><\/h2>\n

It\u2019s not unusual for creditors to continue to report discharged accounts as negative entries on a debtor\u2019s credit report<\/span><\/a>. It may not be intentional. This often results from the company\u2019s failure to update its records, especially after a bankruptcy filing<\/span>.<\/p>\n

Credit reporting<\/span> agencies<\/span> rely on first-party creditors and debt collectors<\/span><\/a> to report the status of a debtor\u2019s account accurately. For example, if a borrower falls behind on\u00a0student loan<\/span> payments, the\u00a0lender<\/span>\u00a0should notify the\u00a0credit reporting<\/span> agencies<\/span>\u00a0that the account is in default.<\/p>\n

When the bankruptcy court<\/span> discharges a person\u2019s debt, the creditor must update the credit reporting<\/span> agencies<\/span><\/a> with this information. If they don\u2019t, it can significantly impact the debtor. Some of the impacts of having negative marks on your credit bureau<\/span> report include:<\/p>\n