What Bankruptcy Attorneys Should Know About Post-Discharge Reporting

Discharge and credit reporting are different questions

Start with the discharge order, schedules and relevant case documents. Determine which obligations were discharged before deciding how an account should be reported. A debt may be reaffirmed, nondischargeable or otherwise subject to a different analysis.

A scheduled account appearing on a report is not itself proof of an error. The balance, payment status, remarks and dates must be considered together.

Identify issues worth further review

• A discharged obligation showing an amount currently collectible from the debtor.
• A current past-due amount inconsistent with discharge.
• A new debt-buyer tradeline for the same discharged obligation.
• Duplicate reporting, incorrect identity information or changed delinquency dates.

Compare all three bureau reports. Reporting can differ by bureau, and a correction on one does not establish that the others have changed.

Create a focused referral handoff

Explain that the referral concerns credit education, restoration and improvement, not a transfer of every matter you handle for the client. Obtain the client’s permission before sharing contact information and separately address consent for status updates.

Provide a concise description of the concern and identify available case documents. Do not send full credit reports, Social Security numbers or account numbers through ordinary referral email.

Set realistic expectations

The purpose is to support the fresh start intended by the Bankruptcy Code through accurate reporting and informed financial decisions. An attorney review may identify dispute options or potential legal claims, but no correction, recovery or credit score improvement is assured.