Our mortgage was included in our CH7 which was discharged in March 2013-we did not reaffirm. We're having some issues currently and are pursuing a modification-in talking with one of the folks from the bank today they explained to me that if we go late (we're current right now) it will "hit our credit." I asked how that could be since the mortgage was discharged. The representative from the bank then went into some convoluted explanation of how as long as we have the mortgage, late payments will still affect our credit. I should also mention that the bank is still reporting our on-time payments as of the last time I pulled our credit reports (two weeks ago)-isn't this technically a violation since they're reporting on a debt we don't actually owe? Right now it's helping us, so I figure, let sleeping dogs lie, but if we do go late eventually and they report it, can we sue them?
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Mortgage was included in CH7-bank still reporting to credit bureaus?
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No, they cannot legally report a late now. If they do, you can send them a copy of your discharge order along with a nastygram telling them they are in violation of the judge's order. You cannot personally sue the creditor for the violation but you can inform the court and the court can handle the case. It's contempt of court. The creditor would be likely fined and be required to pay your attorney fees. You would not get the fine. The court would.
I'm not 100% sure on the legality of reporting positive information on a discharged debt. I think it's a gray area. Both my mortgage and auto loan are reporting positive every month and I did not reaffirm either.Chapter 7, above median, no asset. Discharged with no UST involvement.
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