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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 17513
Experience:  B.A.; M.B.A.; J.D.
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i have filed bankruptcy and it has been discharged. one of

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i have filed bankruptcy and it has been discharged. one of the creditors was washington mutual. chase bought the customer list (so i am told by chase) after washington mutual went under.
Chase is reporting this account in chase bank name and saying they sold the debt, so it is still reporting a balance and is preventing me from getting my credit back on track.
only 1 reporting agency is allowing this to be reported this was. it would appear that the other 2 main reporting agencies have it right.
my understanding of the law is: only the original creditor can report to the bureau after bankruptcy, and if included in the bankruptcy (chapter 7) must report a zero balance. i have diputed the info with the cra and they say the info is being reported correctly.

The obvious question here is: just exactly what is the law pertaining to proper reporting of the above mentioned situation?

Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

 

Question: The obvious question here is: just exactly what is the law pertaining to proper reporting of the above mentioned situation?

 

Response: If the debt was listed in your bankruptcy and then you obtained a discharge of your debts, the debt should show zero balance with a notation that it has been discharged in bankruptcy. This is the requirement of Fair Credit Reporting Act.

Customer: replied 5 years ago.

not real clear with your answer. i am not sure you have understood the question as pertaining to the situation i described.

 

does chase have the right to continue to report the info they are reporting. again they are reporting this enrty under chase bank. the way they are reporting this was not included in bankruptcy. however the original creditor was(washington mutual). legally, how should chase report this.. if at all

not real clear with your answer. i am not sure you have understood the question as pertaining to the situation i described.

 

does chase have the right to continue to report the info they are reporting. again they are reporting this enrty under chase bank. the way they are reporting this was not included in bankruptcy. however the original creditor was(washington mutual). legally, how should chase report this.. if at all

 

Response: Chase should report it as the same account belonging to WAMU and should report it as being discharged in bankruptcy with zero balance showing on the account. It is irrelevant that Chase now owns the account. What is relevant is that the account was transferred to Chase from WAMU and that the same account was listed in your bankruptcy case and properly discharged. The original creditor should show WAMU on your credit report.

 

Customer: replied 5 years ago.
last clarification. chase says they sold the account to someone else before i filed bankruptcy. so chase bank and the cra are reporting the full balances that were sold with no reference to washington mutual or my bankruptcy. Is this legal reporting, since, as a reminder, the origianl creditor was washington mutual, which was included in bankruptcy and discharged. thank you very much for this help.

last clarification. chase says they sold the account to someone else before i filed bankruptcy. so chase bank and the cra are reporting the full balances that were sold with no reference to washington mutual or my bankruptcy. Is this legal reporting, since, as a reminder, the origianl creditor was washington mutual, which was included in bankruptcy and discharged. thank you very much for this help.

 

Response: No, this is not a legal reporting. The fact remains that the original creditor is WAMU. It does not matter how many times the debt is sold, the original creditor remains WAMU and you properly listed the account on your bankruptcy schedules based on the information that you have when you filed for bankruptcy protection, which is the only thing required of you. Whoever Chase sold it to must report the account as discharged in bankruptcy because the creditor can never collect the debt from you, which was properly discharged in your bankruptcy. You may have to sue Chase and the subsequent creditors for improperly reporting the account to the credit bureau.

 

You need to dispute the account once more and this time you would be asked to send a copy of your bankruptcy schedules showing where the account was listed on your Schedule D along with a copy of the Discharge Order.

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