FCRA · POST-BANKRUPTCY·5 min·2026-04-22
Post-Bankruptcy Debt Reporting: Your FCRA Protections
A debt discharged in Chapter 7 or 13 bankruptcy cannot be lawfully reported as owed. When bureaus keep showing these accounts with a balance, it is a per-se FCRA violation under §1681c(a)(1) — and a well-documented trigger for statutory damages.
What the law says
- Discharged debts must be reported with $0 balance and status "discharged in bankruptcy".
- No "charge-off" or "past due" marker after discharge date.
- Chapter 7: 10-year reporting limit. Chapter 13: 7 years.
- Duty applies to both bureaus and furnishers (creditors, collectors).
Common violations we detect
- Discharged debt still showing positive balance.
- Date of discharge absent or post-dated.
- "Re-aged" — new DOFD after discharge.
- Sold to a collector who re-reports as a new account.
Settlement history
- Equifax/TransUnion/Experian — $45M class action, 2011 (Lieff Cabraser), 750 000 consumers affected.
- Typical per-person recovery: $250–$1 800 depending on willfulness.
What to do
- Pull all three bureaus with date stamps.
- Verify every tradeline predating discharge: balance, status, DOFD.
- Seal findings with Credit Truth triple SHA-3.
- File FCRA §1681i dispute + if unfixed, §1681n claim.
15 U.S.C. §1681c(a)(1) · §1681i · §1681n · 11 U.S.C. §524