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Collections law state of TX, negative credit report entries, worst thing for your credit report collections or bankruptcy

Asked over 3 years ago - Gainesville, TX

I had a bank who was reporting to Chexsystems that I had an outstanding balance that had not been included in my bankruptcy. When I offered to try and settle the account, and when the bank found out I had filed bankruptcy in the loss time frame, they said they could not legally settle the debt.

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Attorney answers (1)

Jay Stuart Fleischman

Reputation Level 9

Answered over 3 years ago. Bankruptcy Attorney in New York, NY.

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It is illegal for a creditor to continue to report a debt discharged in bankruptcy as due and owing. Continuing to report the debt as due and owing even after it has been discharged may be considered a violation of the discharge injunction in your bankruptcy case.

The Fair Credit Reporting Act gives you a mechanism for reinvestigating an inaccuracy on your credit report. In the event that the demand for renvestigation yields a creditor that has verified the debt as due and outstanding, you may also have a cause of action for violations of the Fair Credit Reporting Act, Bankruptcy Code, common law defamation and other state and federal laws.

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