BK Chap 13 dispute tactics

Discussion in 'Credit Talk' started by Paul, Mar 24, 2001.

  1. Paul

    Paul Guest

    Yet another newbie question, so please bear with me..

    My credit report shows a Chapter 13 FILED under public records in 1992, and no accounts listed as part of the BK...

    The actual bk was discharged in 94, but this fact isnt showing on any of my reports, just the FILED status .

    My questions...

    1 - I know Christi wrote a killer letter disputing the fact that a FILED (without adjudication) or Dismissed Chapter 13 is not a bankruptcy decision, and was able to have the bk removedby the bureause.. anyone else have luck using this tact?

    2 - I was under the impression that adjudicated or discharged chapter 13's could remain for 10 years.. is this true if the records only show a bk filing, and not a final disposition?

    3 - Anyone have any luck disputing a bk based on the CRA requirements found in FCRA section 613(2) (Public record information for employment purposes)? I am contemplating whether I can dispute the bk entry based on the fact that if I were to seek employment, and this record was listed on my report, that any CRA producing such report would not be in compliance due to the fact that the actual bk information on file with the courthouse is not the information the CRA files have...

    From the text of an FTC opinion on section 613..

    Section 613 of the FCRA states that when a CRA compiles and reports adverse public record information on consumers for employment purposes, it must either (1) notify the consumer that the data is being reported, with the name and address of the employer who is receiving it, or (2) have "strict procedures" in place to ensure accuracy of the information. In order to comply with the second alternative under Section 613(2), the CRA (employment screening service) must:

    maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer's ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported.

    Thanks again for reading my long posts...

    Full text of FTC opinion on the statute..
  2. jshimmer

    jshimmer Well-Known Member

    > 2 - I was under the impression that adjudicated or
    > discharged chapter 13's could remain for 10 years.. is
    > this true if the records only show a bk filing, and not a
    > final disposition?

    You said your CH13 was filed in 1992, and discharged in 1994. A CH13 (federal) is a 5 year plan. Did you mean to say it was DISMISSED in 1994?

    Regardless, a CH13 will remain on your credit history for 7 years (not 10) from the date of FILING (not discharge/dismissal), regardless of the outcome. Since you FILED in 1992, it should have been removed back in 1999.

    The problem is that the record was never updated (at the CRA's) to indicate the change in status (dismissal or discharge) - this is why it's still on your report right now (same thing happened to me).

    The reason there are no accounts reported as being included in the bankruptcy is because those accounts were removed 7 years after the original delinquency date, which was BEFORE you filed for the bankruptcy to begin with.

    Dispute it based on age alone -- it can't be there -- it's 7 years from the date of FILING for a Chapter 13.

    John Shimmer
    Home of the Ultimate Creditor/CRA List
  3. Paul

    Paul Guest


    Thanks for the information. It was VERY helpful. Actually, I should have elaborated.. the BK was discharged in 94 because it was converted to a Chapter 7. Oddly enough, this fact isn't noted on my equifax report. The bk doesn't appear anymore on the other 2 reports.


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