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I filed chapter 7 and it was settled in 4/10. My house was not included. In 4/11 I paid the mortgage off and received a

Boca Raton, FL |

release of lien from Wells Fargo. They continue to report my mortgage as discharged in bankruptcy and debt included in chapter 7 bankruptcy. No mention that I paid it off. 2 years of letters and calls (many) to reporting agency and bank. I just got a rejection letter for a credit card from Wells Fargo because my Wells Fargo account was not paid as agreed, reported by Experian. It's comical. What can I do?? Can I sue now?

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Attorney answers 4

Posted

Sue who, and for what? If you filed Chapter 7 and got a discharge, and did not reaffirm the mortgage, then the credit report is correct. There is no debt that is "not included" in a Chapter 7, and "settled" is not an actual event in the Chapter 7 case, so your post is not clear on the important details of your Chapter 7 case.

Asker

Posted

Sorry, I meant discharged. I realise the bank can report my bankruptcy but shouldn't they also report that the loan was paid in full/no late payments? My credit report looks like I lost the house.

Matthew Scott Berkus

Matthew Scott Berkus

Posted

No. You discharged your personal obligation. What you did was pay off the lien. Your credit report is a history of your personal obligations to pay a loan. Not history of security instruments against the house. I know that is a fine line, but that is the law.

Posted

IF you held the mortgage loan when you filed your chapter 7, then technically your debt was discharged in bankruptcy. The mortgage lender could never have pursued you for any remaining balance. However, the lien, mortgage or deed of trust, survived the bankruptcy. In order to get clear title you paid off the lien voluntarily. The credit bureau can report the bankruptcy discharge. Sorry.

Posted

It's apparently my minority position night amongst my colleagues...

IMHO, an account can be paid as agreed (timely payments, in full, etc.) even if the obligation was discharged in bankruptcy.

Asker

Posted

yes, it was being reported as current/no late payments for the year after the discharge. After I paid it off - the bank reported the debt included in bankruptcy. It just seems wrong.

Gary D. Bollinger

Gary D. Bollinger

Posted

Request a history of the payments on the account: it might put the lie to their claim that the account was not "paid as agreed."

Posted

Wells Fargo has the legal right to pick and chose their customers based on a lot of factors. If you want to challenge something on your credit report, before you have the right to sue, you must comply with the provisions of the Fair Credit Reporting Act. The link to this law is below. Hope this perspective helps!

Asker

Posted

Thank you Dorothy for the information, appreciate your time! Lots to read but very helpful.