Chapter 13 and the Credit Bureau Reporting of Late Payments

[Johnworker1]

Happy New Year!
My 100% Chapter 13 plan was discharged Oct of 2023 ((Yaah) and since then I have been working on cleaning and establishing credit.

I had a HELOC since 2009 and my last filing for Chapter 13 (multiple filings) was around 6/2017 that was discharged 10/23. This HELOC wasn't modified by the bankruptcy filings and I paid it separate from my bankruptcy payments from the beginning.
Looking at my 3 bureaus there are late payments on this HELOC posted on Equifax for Jan-Mar (3) of 2018. On Experian there were late payments posted from 2017 Nov to 2018 Mar (5). On TransUnion there were late payments posted from Dec 2017 to Apr 2018 (5).
In the past I have disputed these as inaccurate just to see if they would be removed and they weren't. I just realized today that these late payments were during my Bankruptcy Chapter 13 plan.

My questions is does Bankruptcy grant me protection from them posting late payments to the bureaus?

[justbroke]

The answer to the question is... it depends. The best thing to do is go on a letter writing campaign with the creditor. Ask them to either remove the entire tradeline or to fix the incorrect entries. It's a fine line in trying to show that they were "trying to collect on a dischargeable/discharged debt" when they reported the incorrect entries. The fact that they are "incorrect" should be enough to get them excluded, but you usually need to go to the source of the error (and not the bureau).

When I had these issues I made a demand that they entries were incorrect and in violation of the permanent discharge injunction. I demanded that they remove them IMMEDIATELY via eOscar (on-line instant access to the bureaus) and do so within 7 business days or I'd file a motion for sanctions (and I meant every word of it).

I would start with the creditor. Mail a simple letter asking for removal and include your discharge order along with information about the debt being discharged. The creditor may fix the entries or just remove the entire tradeline. I don't know what else to say.

[Johnworker1]

The answer to the question is... it depends. The best thing to do is go on a letter writing campaign with the creditor. Ask them to either remove the entire tradeline or to fix the incorrect entries. It's a fine line in trying to show that they were "trying to collect on a dischargeable/discharged debt" when they reported the incorrect entries. The fact that they are "incorrect" should be enough to get them excluded, but you usually need to go to the source of the error (and not the bureau).

When I had these issues I made a demand that they entries were incorrect and in violation of the permanent discharge injunction. I demanded that they remove them IMMEDIATELY via eOscar (on-line instant access to the bureaus) and do so within 7 business days or I'd file a motion for sanctions (and I meant every word of it).

I would start with the creditor. Mail a simple letter asking for removal and include your discharge order along with information about the debt being discharged. The creditor may fix the entries or just remove the entire tradeline. I don't know what else to say.

Thanks so much! I was also thinking this is something I should address the creditor.
Should I include a copy of my bureaus with the letter?

[justbroke]

No. Don't include any letter to the bureau. Usually a waste of time if you already disputed the tradeline.

[Johnworker1]

No. Don't include any letter to the bureau. Usually a waste of time if you already disputed the tradeline.

I meant a copy of the erroneous credit bureaus to the creditor so they can see the variable dates.

[justbroke]

You shouldn't need that. They should "know" what is in their own system and what is being reported.

[Snacks41]

I filed Ch.13 in Sep 2018. I made my final payment in Sep 2018. I was discharged in Jan 2024. I checked my scores in January. EQ and TU had me at 596. EX did not have any info. I checked in February and EQ and TU had me at 621 and indicated Ch.13 Discharge. EX still no info. I got a secure credit card. EQ and TU both have me at 662. EX now shows up at 593. EX CR also is showing 1 late payment, but it does not show me who reported it. The 3 listed creditors on my report indicate no late payments. Should they have to list where this info came from? I thought that late payments fall off after 7 years from the initial reporting. With this info not showing up on my EX CR how would I know. Any info or advice is welcome. Thanks!

[shipo]

It sounds like you are mixing apples and grapefruits; the EQ and TU scores you are getting most likely are Vantage 3.0 scores and are completely irrelevant as scores and are ignored for underwriting for new lines of credit. The EX score is most likely a true FICO score, and is the only one which is accurate.

Regarding old payment and other negative marks on your reports, they are also irrelevant as the Public Record of your bankruptcy trumps all other negative information. You are now in the land of rebuilding, take it slow and steady, get yourself three credit cards, keep them paid and in August of 2025 your scores will pop.

[Snacks41]

Thanks for the information. I have a secured card and will work on getting more. Thanks again.

[Johnworker1]

You shouldn't need that. They should "know" what is in their own system and what is being reported.

I submitted a packet to my credit union and received a call a few days later from the Compliance Dept and haven't heard anything or seen any changes since. Since these late payments are from Dec 2017 to Mar 2018 I believe their negative weight on my scores decreases with time so I will wait for them to fall off on the 7 year mark which will be within 12 months. They also don't report my original loan amount on one bureau so it skews my available balance calculation but I will try to work on things within my control (credit management) than dealing with them although I may look into complaining to the agencies that govern credit unions (NCUA) and the FTC and CFPB.

[Johnworker1]

Nothing has changed from my disputes to the bureaus and my credit union. My credit union is very stubborn and vindictive (they were in the Bankrupcy filing) so I decided to leave things alone at this time. It seems my credit scores have all improved and these reported late payments are 6+ years old and from my reading their negative influence on my scores dissipates with time. All of them should drop off my bureaus within 12 months.