Common Ways Creditors & Debt Collectors Mess Up a Credit Report After Someone Files Bankruptcy

Traditionally, Florida has been one of the best, if not the best state in which to file for bankruptcy.  The exemptions afforded to Florida residents are some of the best in the country.  Indeed, the Florida legislature created the state exemptions years ago to attract people to its remarkably beautiful state (as if having Disney World were not enough).

Here’s the problem.  Your Florida bankruptcy attorney has promised to get you a fresh start if you file Chapter 7 or 13.  But many of them don’t deliver on this promise.  Why? Because they do not bother to look at your credit report after you have filed for bankruptcy.  Many times, creditors and mortgage lenders cause needless and illegal damage to consumer’s credit reports after they file for bankruptcy.  Without a clean credit report, you are stuck at the “Fresh Start” line and you are not going anywhere until you get that report fixed.  Here are some of the most common ways that creditors and debt collectors screw up a credit report after someone files for bankruptcy.

Common Ways Creditors & Debt Collectors Mess Up a Credit Report After Someone Files Bankruptcy In Florida

1. Mortgage Lenders Refusing To Report a Balance Due, a Monthly Payment Due, & Sometimes, Deleting The Payment History

This is horrible and happens a lot even though the mortgage balance is typically not discharged in bankruptcy.  The biggest piece of your credit score is made up of timely made payments (35%).  Each time you timely make a payment to a creditor that reports to the credit bureaus, your score goes up.  If none of these timely payments is reported, then you do not get that benefit.  By reporting a zero balance due, your creditor is doing you no favors because they are also not reporting any payments that you have or will make against your debt.  Mortgage lenders do this a lot, especially the large banks.  Some of them just don’t seem to know how to credit report a tradeline when someone files for bankruptcy.

Worse yet, when you go to apply for a new mortgage one day after bankruptcy, the application process will be even worse than it is now because your credit report will not reflect your timely payments on your mortgage debt.  

2. Debt Collectors Report Items As “Open” When They Should Be Reported As “Discharged In Bankruptcy”

Many debt collectors are paid on a commission basis contingent on what they collect.  Sometimes, they fail or refuse to report a debt that they were pursuing a consumer for prior to the bankruptcy as having been discharged in bankruptcy.  This damages your credit score greatly.  

3. Creditors Reporting The Pre Plan Monthly Payment & Balance Due On Their Trade Lines

Almost as bad as reporting a zero balance due is failing to adjust the balance due and monthly payment to the new amount as reflected in  your confirmed bankruptcy plan.  Once you file a plan of reorganization in a Chapter 13 and that plan is confirmed, you have a new contract with your creditors.  Many times, this plan will reduce the balance that you owe to the creditor along with the monthly payment that is due.  Many times, creditors will fail to report the new monthly payment and balance due and opt to keep the old payment and balance due on your credit report.  This means that each time you make the new lower payment, your creditor is reporting you as late.

You Don’t Have To Tolerate Any Of This Or Risk Having Your Credit Score Kept Down

Allow us to review your credit reports for free and see if we can find something that we can fix on your credit report at no out of pocket charge. We only make money if we can find something that we cannot persuade a creditor or creditor to remove and we sue them successfully.  We only collect our fees from the money that we collect on your behalf.

Contact us today at Credit Repair Lawyers Of Florida for more information about how we can review your credit reports for errors and mistakes at no out of pocket charge to you.  Contact me, Attorney Carl Schwartz at [email protected] or call me at 877-293-2882 for a free, no obligation consultation.  Let us look at your credit reports and truly get you the fresh start that you deserve.


22142 W. 9 Mile Rd.
Phone: 877-293-2882
Email: [email protected]