Debt Collection After Bankruptcy

Can a Lender Try to Collect a Debt Discharged in Bankruptcy?

It will be two years in January that my bankruptcy was discharged.

I had a repossession and it is part of the bankruptcy. However the lender has it as a charge off of bad debt, stating that I owe $9536.

I do not understand since it is part of the bankruptcy discharge.

I am trying to get a new vehicle and this loan has become an issue. The finance manager at the dealer says that they are still trying to collect.

How is that possible when I have a bankruptcy discharge?

How do I get this removed from my credit report?

Shema

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If this debt is included in the bankruptcy discharge it is illegal for the lender to try to collect it.

However, this does not necessarily mean that the charge off entry on your credit report is incorrect or can be easily removed. It also does not mean that a lender will give you another car loan at this point.

If you had a repossession, you defaulted on a secured loan before the bankruptcy filing and the charge off entry might be correct.

I hope you had a lawyer represent you in your bankruptcy and everything was done correctly. If so, consult him/her if the lender tries to collect on the debt. Ask him if it possible to get the charge off removed, although it makes little difference to your credit score since both that and your bankruptcy will remain on your credit report for seven years or more.

As far as getting new credit, you might have to go to a sub-prime lender and pay a substantial interest rate. Maybe no lender will offer you credit at any price. There is nothing you can do about that; it is part of the price of filing for bankruptcy.

For a consultation with a local bankruptcy attorney, click here.

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You gave Shema bad advice about the charge-off for the repossession of her car.

All she has to do is contact the credit bureau and let them know that this debt is included in the bankruptcy.

Proof! Gone! Even though the bankruptcy will be reported for 10 years. Are you trying to punish her more?

I have been there and done that.

BAD BAD ADVICE!

Angela

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Not every bankruptcy is error free. All I suggested is she contact the lawyer who handled the bankruptcy to see to it that the credit report is corrected. He will have more luck in getting this done quickly.

Negative entries on a credit report can be correct even though the creditor can do nothing about it.

I stand by the rest of the answer.

Read this comprehensive article about the changes caused by bankruptcy reform.

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