Credit Cards Are Still Showing Balances After a Chapter 7 Discharge

Chapter 7 bankruptcy is an effective solution for credit card debt, and eliminates the debts in just months. A bankruptcy trustee oversees the process as nonexempt assets, such as expensive jewelry or collectibles, are sold to pay off credit card and other debt. The quick liquidation and elimination of credit card debt allows for a fresh start. Credit card accounts that continue to show a balance after the bankruptcy require attention, but the problem is easily solved.

Credit Report

Credit reports sometimes show inaccurate information after Chapter 7 bankruptcy. Credit bureaus such Experian, Equifax and TransUnion may show credit card accounts that were eliminated through the bankruptcy as open, past-due and with balances. Usually, the problem is that the accounts simply haven't been updated since Chapter 7 bankruptcy was completed or eliminated. That is easily corrected by contacting the credit bureau by mail, telephone or online.

Corrections

Notifying the credit bureaus that the accounts should be listed as "included in bankruptcy" corrects the problem, according to Experian. Written correspondence is best because it completes a paper trail. People with inaccurate information on credit reports after bankruptcy should write letters to the credit bureaus at the addresses listed on credit reports. The letters should include the credit card account numbers and the official date of the bankruptcy discharge. Credit bureaus are obligated by law to respond to inquiries within 30 days.

Credit Repair

Updating your credit reports is only the first step in rebuilding credit after Chapter 7. The process takes about two or three years of on-time payments after opening new credit. Accurate reporting on previous accounts is crucial, because credit card accounts showing as past due with balances make gaining new credit difficult or impossible.

Deleting Information

Credit repair agencies boast they can remove negative information from credit reports, including bankruptcy-related content. However, the Federal Trade Commission reports that the firms cannot legally do so. Negative credit information such as "included in bankruptcy" remains on credit reports for seven years, according to the FTC.