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Quick answer
Debts discharged in bankruptcy should be reported with a zero balance and a note that they were discharged or included in bankruptcy. If a discharged debt still shows a balance, a past-due amount or new late payments, that may be inaccurate, and you can dispute it for free.
How should discharged debts appear on your report?
A bankruptcy discharge releases you from personal liability for the debts it covers. The accounts don’t usually disappear from your report right away, because accurate past history can stay for the period the law allows. What should change is how they’re reported going forward.
What you’d expect to see
- A zero balance
- A note such as “discharged in bankruptcy” or “included in bankruptcy”
- No new late payments after the discharge
Signs of a reporting error
- A balance still owed
- A past-due amount
- New late marks or a “charged off” status after discharge
Signs a discharged debt is reported incorrectly
Compare your report with your bankruptcy paperwork and tick anything you see.
These signs can point to inaccurate reporting after bankruptcy. An advocate can review your report with you, free of charge.
Start a free reviewWhy discharged debts keep showing as owed
The lender didn’t update its reporting
The account status was never changed after the discharge.
The debt was sold before discharge
A collector that bought it keeps reporting a balance.
The account wasn’t matched to the case
The creditor didn’t connect the account to your bankruptcy.
Automatic monthly reporting
Ongoing reports keep marking the account as late.
What the law says
- Accuracy
- Under the Fair Credit Reporting Act, credit bureaus and the companies that report to them must report information accurately.
- Time limits
- A Chapter 7 bankruptcy can be reported for up to 10 years from filing. The major bureaus generally remove a Chapter 13 bankruptcy after 7 years.
- Free disputes
- You can dispute inaccurate information at no cost, and the bureau generally must investigate within 30 days.
- Collection
- A discharge generally bars creditors from trying to collect the discharged debts from you personally.
Bankruptcy is a legal process. For questions about your discharge itself, consider speaking with a bankruptcy attorney. This is a general summary of public federal law, not legal advice.
Steps you can take
- Get your discharge paperworkYour discharge order and the list of debts included in your case.
- Pull your reports from all three bureausMark every account that was included in the bankruptcy.
- Check each account’s balance and statusLook for balances, past-due amounts or late marks after the discharge date.
- Dispute each incorrect accountWith each bureau that shows it, including a copy of your discharge order.
- Escalate if it isn’t resolvedYou can submit a complaint to the Consumer Financial Protection Bureau.
Discharged debts still showing as owed? We can review your report with you.
Common questions about bankruptcy reporting
Should discharged debts show a balance on my credit report?
Generally no. Debts discharged in bankruptcy should be reported with a zero balance and a note that they were discharged or included in bankruptcy.
Will discharged accounts be removed from my report?
Not right away. Accurate past history can stay for the period the law allows, but the accounts should be updated to reflect the discharge.
How long does a bankruptcy stay on my credit report?
A Chapter 7 bankruptcy can stay for up to 10 years from filing. The major bureaus generally remove a Chapter 13 bankruptcy after 7 years from filing.
What should I include with a dispute?
A copy of your discharge order and, if possible, the list of debts included in your case.
Sources
- Federal Trade Commission: Fair Credit Reporting Act
- United States Courts: Bankruptcy
- Federal Trade Commission: Disputing errors on your credit reports
- Consumer Financial Protection Bureau: Submit a complaint
This guide is general information based on public sources. It isn’t legal advice, and Credit Dispute is not a law firm.