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cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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Can a secured creditor in a Ch 13 plan continue to report the

Resolved Question:

Can a secured creditor in a Ch 13 plan continue to report the account as Past Due to the credit bureaus even though all plan payments have been made on time as scheduled ?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.

cfortunato :


cfortunato :

It is a violation of the Bankruptcy Code for any creditors to submit any information to credit bureaus beyond the fact that the account was included in a Bankruptcy.

cfortunato :

If any creditor in your Bankruptcy - whether secured or unsecured - is reporting an account as past due, the credit bureau has to remove that designation if you bring this to their attention.

Customer: replied 4 years ago.
Is their action considered a violation of the stay and/or should it also be reported to the court ?
Expert:  cfortunato replied 4 years ago.
Reporting the account as past due is a violation of the automatic stay, but the Bankruptcy court will not do anything about the violation unless you file a motion asking the court to sanction the creditor.
It would be much easier to point out the violation to the credit bureau(s) that are showing the account as past due. In most cases, the credit bureau(s) will go ahead and remove the past due designation and add the fact that the account is in a Bankruptcy.
Customer: replied 4 years ago.
Is there a specific form with which to file such a motion ?

(At what point should I "accept" your answers if I have additional questions beyond the original one ?)
Expert:  cfortunato replied 4 years ago.

In the middle of the page - where the word COMPLAINT is - you would write, ''Complaint Seeking Damages for Violation of Automatic Stay''.

Underneath that caption, you would use numbered paragraphs to indicate the facts involved, and the damages you are seeking.

Since there are usually no damages while a Bankrutpcy case is in progress, this is the type of motion that is normally filed after a Bankrutpcy case is discharged.

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