Ensure your post-bankruptcy credit report is accurate. Protect your score and avoid wrongful collections after Chapter 7.

Chapter 7 bankruptcy offers a valuable opportunity to reset your financial situation by eliminating overwhelming debt and allowing for a fresh start. If you are thinking about going through this process, read our blog on Chapter 7 bankruptcy preparation. However, many individuals may overlook a crucial step in the process—ensuring that their post-bankruptcy credit report accurately reflects the discharged debts. Inaccurate or outdated information on a credit report can create unnecessary obstacles, making it harder to obtain new credit, or even secure housing.

Why Checking Your Credit Report After Bankruptcy Matters

1. Ensuring Discharged Debts Are Properly Reported

• Creditors and credit bureaus are required under the Fair Credit Reporting Act (FCRA) to update your credit report to show that debts included in the bankruptcy discharge have been properly marked. This is a critical part of discharged debts reporting.
• Errors such as accounts still marked as active or delinquent can hurt your credit score and financial opportunities.

1. Protecting Your Credit Score from Unnecessary Damage

• If a discharged debt is reported incorrectly, it can continue to lower your credit score unfairly, especially if the credit report accuracy after bankruptcy is not reviewed.
• Addressing inaccuracies early can help you rebuild your credit more effectively.

1. Preventing Collection Agencies from Pursuing Discharged Debts

• Some collection agencies may attempt to collect debts that have already been discharged, violating the FCRA.
• If your credit report is incorrect, you may still receive collection calls or legal threats that should not occur— a risk that increases without checking credit after bankruptcy.

1. Correcting Violations of the Fair Credit Reporting Act (FCRA)

• The FCRA protects consumers by ensuring credit reports are accurate, fair, and up to date.
• If errors are found, credit bureaus are legally required to investigate and correct them within 30 days. In cases of non-compliance, consumers may be entitled to financial compensation under the FCRA, especially in cases involving an inaccurate credit report.

How to Check Your Credit Report Post-Bankruptcy

• Obtain your credit report from the three major credit bureaus: Experian, Equifax, and TransUnion (you are entitled to a free report once a year from each at AnnualCreditReport.com).
• Look for accounts that should be marked as “discharged in bankruptcy”, or let us handle the review for you at no cost..
• Check for incorrect balances, open accounts that should be closed, or debts that were mistakenly not included — or have us do it for you at no charge.
• If you find errors, file disputes directly with the credit bureaus, or let our experienced team manage the dispute process for you. and follow up to ensure they are corrected. Knowing how to fix credit after bankruptcy is essential to protect your financial future.

Rebuilding Your Credit After Bankruptcy

• Apply for a Secured Credit Card: This helps establish positive credit history when used responsibly.
• Make On-Time Payments: Paying bills on time is crucial to improving your credit score.
• Monitor Your Credit Regularly: Keeping track of your report can help you catch and address issues quickly.

Conclusion

A post-bankruptcy credit report review is essential for securing the financial fresh start you deserve. By ensuring your discharged debts are correctly reported and taking proactive steps to rebuild credit, you can move forward confidently toward a stronger financial future. If discrepancies arise, knowing your rights under the FCRA and addressing errors promptly can protect your credit and prevent unnecessary setbacks.

At Pagan Lopez Law, we focus on reviewing post-bankruptcy credit reports to ensure accuracy and compliance, at no cost to consumers. In some cases, correcting errors may result in financial compensation under statutory provisions in the FCRA designed to protect consumers from credit reporting violations. Click here to contact us.