Can You Dispute a Credit Report After Filing Chapter 7?

A consumer's credit report should change considerably after a chapter 7 bankruptcy. If the changes do not show, or are reported incorrectly, then the consumer may dispute the errors.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is commonly referred to as a liquidation. Under a chapter 7 bankruptcy, the debtor is able to discharge most of her debts and start with a fresh credit rating. Once the discharge has been entered by the court, the debtor is no longer legally responsible for debts included in the discharge order.

Credit Report

After discharge of a chapter 7 bankruptcy, the debtor's credit report should reflect the discharge of the debts accordingly. For any debt that was included and discharged in the bankruptcy, the debtor's credit report should reflect a zero balance. The credit report is still allowed to reflect the debtor's payment history, but the amount due must show as zero. Certain debts that cannot be discharged in a bankruptcy, such as federal student loans, taxes or child support, will be unchanged on the debtor's credit report after bankruptcy.

Post Bankruptcy Disputes

If a debtor finds that balances continue to show on her credit report after a discharge in a chapter 7 bankruptcy, she should dispute the debt with the credit reporting agency. Each agency has its own procedure for disputing a debt shown on the report, but the consumer can locate the procedures or dispute the debt directly from the credit reporting agency's website.

References

• Moran Law: Credit Reports
• Federal Trade Cmmission: How to Dispute Credit Report Errors
• United States Courts: Chapter 7 Bankruptcy