Discharged debts still showing a balance
A bankruptcy discharge bars any act to collect the discharged debts from you personally (11 U.S.C. § 524(a)(2)). A credit report that still shows those accounts with a balance, as past due or as an open collection is reporting a debt you no longer owe. If the bureau and the creditor do not correct it after a written dispute, the Fair Credit Reporting Act lets you sue. The bankruptcy itself may be reported, accurately, for up to 10 years.
A bankruptcy discharge is supposed to be a clean break. Too often the credit report tells a different story: accounts listed in the schedules still show balances, still show "past due", or show up as new collections after a debt buyer bought them. A lender looking at that report sees debts you legally no longer owe on top of a bankruptcy. The Fair Credit Reporting Act does not let the bureau and the creditor leave it that way once you dispute.
What it looks like
- A balance after discharge. A card or loan listed in your schedules still reports a balance owed.
- Still "past due". The account keeps reporting monthly late payments after the discharge date.
- No bankruptcy notation. The account shows as charged off or in collection with no mention that it was included or discharged in bankruptcy.
- A new collection. A debt buyer reports a discharged debt as a fresh collection account.
- The wrong chapter or dates. The public record shows the wrong chapter, filing date or discharge date, or shows a dismissal where there was a discharge.
- Too old. The bankruptcy is still reporting more than 10 years after it was filed.
The law
The accuracy rule governs: a consumer reporting agency must follow reasonable procedures to assure maximum possible accuracy (15 U.S.C. § 1681e(b)). A report that shows a discharged debt as currently owed tells a lender something false about your obligations. Bankruptcy discharges are public court records, so a bureau that reports the bankruptcy but leaves the discharged accounts showing balances has the information it needs to see the conflict.
After you dispute, the bureau must reinvestigate within 30 days (§ 1681i(a)(1)), notify each creditor within 5 business days (§ 1681i(a)(2)), consider your discharge order and schedules (§ 1681i(a)(4)), and correct or delete what is inaccurate (§ 1681i(a)(5)(A)). Each creditor, once notified, must investigate and correct its reporting with every nationwide bureau (§ 1681s-2(b)(1)).
What may stay, and for how long
| Item | Federal limit | Authority |
|---|---|---|
| The bankruptcy case | 10 years from the order for relief or adjudication | 15 U.S.C. § 1681c(a)(1) |
| Accounts charged off or placed for collection | 7 years, running from 180 days after the delinquency began | § 1681c(a)(4), (c)(1) |
| New York statute, bankruptcy case | 14 years from adjudication of the most recent bankruptcy | N.Y. Gen. Bus. Law § 380-j(f)(1)(i) |
The federal time limits do not apply to reports for credit or life insurance of $150,000 or more, or a job paying $75,000 a year or more, the thresholds in § 1681c(b). A collector that tries to collect a discharged debt, or reports it as owed, also risks a false statement about the legal status of the debt under the FDCPA (15 U.S.C. § 1692e(2)(A), (8)).
What you can recover
For a willful violation of the FCRA, actual damages or statutory damages of $100 to $1,000, plus punitive damages (15 U.S.C. § 1681n(a)). Willful includes reckless disregard (Safeco Ins. Co. of America v. Burr, 551 U.S. 47 (2007)). For a negligent violation, actual damages (§ 1681o(a)). The FCRA requires a company found liable to pay the consumer's reasonable attorney's fees and costs.
Accurate history can stay. Payments you missed before the filing, and the fact that the account was included in the bankruptcy, may be reported within the federal time limits. The claim is about what is false now: a balance owed, a current past-due status, or a collection that treats the debt as collectible. That distinction matters in a dispute letter, because asking the bureau to delete accurate history invites a "verified" answer, while asking it to correct a balance to zero with proof of the discharge attached is hard to ignore.
People rebuilding after bankruptcy apply for credit, apartments and jobs, so the harm is usually documentable: a denial, a higher rate, a larger deposit. Under TransUnion LLC v. Ramirez, 594 U.S. 413 (2021), that kind of concrete harm, or a report actually sent to a business, supports standing.
What to do now
- Get the discharge order and schedules. Your bankruptcy lawyer has them, or they are on the court docket.
- Pull all three reports. Mark each account listed in your schedules and how it reports now.
- Dispute in writing with each bureau. Enclose the discharge order and the schedule page listing each account. Ask that each show a zero balance and discharged or included in bankruptcy.
- Keep the collection calls. If anyone is still trying to collect a discharged debt, save the letters and log the calls.
- After 30 days, check again. If the balances remain, talk to a lawyer. See failed dispute.
The clock
Earlier of 2 years from discovery or 5 years from the violation
An FCRA suit must be filed within 2 years after discovery and no later than 5 years after the violation (15 U.S.C. § 1681p). An FDCPA claim against a collector has one year (15 U.S.C. § 1692k(d)). See deadlines.
In New York, New Jersey and Florida
The federal duties apply in all three states. New York's fair credit reporting act bars reporting information an agency has reason to know is inaccurate (N.Y. Gen. Bus. Law § 380-j(a)) and provides damages, costs and fees (§§ 380-l, 380-m). Its own bankruptcy reporting period is 14 years (§ 380-j(f)(1)(i)), longer than the federal 10. In Florida, the Consumer Collection Practices Act reaches any person collecting a consumer debt, and bars disclosing information about a debt known to be false (Fla. Stat. § 559.72(5)). See New York, New Jersey and Florida.
Common questions
How long can a bankruptcy stay on my credit report?
Under federal law, up to 10 years from the date of the order for relief or adjudication (15 U.S.C. section 1681c(a)(1)). That is the bankruptcy case itself. The individual accounts should show that they were included or discharged in bankruptcy with no balance owed.
Can a discharged account still show late payments from before the bankruptcy?
Accurate history from before the filing can generally remain. What should change is the current status and balance: no amount due, no ongoing past-due status, and a notation that the account was discharged or included in bankruptcy.
A collector is calling about a discharged debt. Is that legal?
The discharge operates as an injunction against any act to collect a discharged debt as your personal liability (11 U.S.C. section 524(a)(2)), which is enforced in the bankruptcy court. For a debt collector it can also be a false statement about the legal status of the debt under the FDCPA (15 U.S.C. section 1692e(2)(A)). Save the calls and letters and talk to a lawyer.
Do I need my bankruptcy lawyer for this?
Not necessarily. Credit reporting claims are separate lawsuits under the FCRA. Bring the discharge order, the schedules listing the debts, and your credit reports.
Tell us what they did.
One conversation with an attorney, in your language. We tell you which laws the collector or the credit bureau broke, which deadline runs first, and what to save this week. If it is not a case we can take, we say so and tell you where to go.
(718) 484-7510The FDCPA and the FCRA require a company found liable to pay the consumer’s reasonable attorney’s fees and costs. Our fee arrangement is confirmed in a written retainer before we begin. English, Russian and Spanish in-house; an interpreter for any other language.