Collections reporting after Chapter 7

[joetogo90]

Hello,

My name is Joe and I'm a new member here. I filed Chapter 7 Bk with my ex spouse back in 2017. A few of my collection debts on Credit Karma show being an active "open" account with a $0 balance, with the remarks of "Chapter 7 Bankruptcy". I was wondering though should the account say closed since it was discharged in my BK? I've tried disputing this with CK with no luck and even called the Collection Agency to ask why my account still shows being open on my credit report. But I have not had any luck by contacting either place. Are accounts supposed to be reporting as closed if they were charged off in the BK?

I feel like my credit report has been weird ever since my BK. My ex spouse was able to apply for a Capital One card a month after the discharge and was approved for $1000. I haven't been able to get any credit offers nor am I even able to get a bank to even let me open a checking/savings account. I've been using a prepaid bank account since my BK in 2017. Even local credit unions are iffy on opening an account with me. The few times I have applied for something, I get the typical rejection stating I have too much in collections/have a BK on my record. I can't even get approved for a secured credit card 3 years after my BK.

Thanks for the help!

[justbroke]

Welcome to BKForum.

Your issue with iopening bank accounts is likely that there is something derogatory in the ChexSystems system. That system is ran by LexisNexis. You can easily dispute that by going to ChexSystems' web site and filing a dispute. List bankruptcy as the reason and that should clear up any banking-related issues.

As for disputes, I would do them directly with the individual credit bureaus (Experian, Equifax, Transunion). I would call since you already did this through Credit Karma (which I never recommend unless you go directly to the bureau itself). These accounts should in fact be closed, so dealing directly with a human on the phone at those bureaus, will probably work better.

Alas, don't be surprised if your scores go down! A collection account on your report could actually be helping something known as your "average age of accounts" or AAOA. Disputing it, and then having it removed could cause your score to drop, so don't be surprised. Your score will eventually rebound as your report ages.'

Additionally, you should be able to get a secured from a credit union (CU) as they don't even use a credit score as a factor. They use your Share Savings account as partial collateral (up to the amount of the card), and will likely "graduate" the card after some time. If you can get into Navy Federal CU (NFCU), then try to get an account there.

Good luck!