How to Fix the 7 Most Brutal Bankruptcy Credit Report Errors

Credit Reporting Errors
11 min read
July 07, 2025

You did everything you were supposed to, so why is your post bankruptcy credit report not keeping up?

You filed for bankruptcy, went through the process, had your debts discharged, and started over. But when you check your credit report, the nightmare is still there. Debts that were discharged are still showing as due. Accounts are listed as open. Collection notices that should be gone are still haunting you.

Sound familiar? You’re not alone.

Credit report errors after bankruptcy are disturbingly common. And they don’t just affect your score, they affect your entire financial future. From home loans and car financing to job offers and insurance rates, an inaccurate bankruptcy credit report can cost you in ways most people never expect.

The good news? You don’t have to accept it. Here’s how to recognize the 7 most brutal bankruptcy credit report errors and what to do if the credit bureaus or creditors refuse to fix them.

You can also visit our Bankruptcy Errors practice page to learn more about how we can help you correct bankruptcy credit report mistakes and protect your future.

A ghost arises from a credit report. The image conveys that bankruptcy credit report errors can haunt you.

7 Brutal Bankruptcy Credit Report Errors

1. Discharged Debts Still Showing as Due

This is the big one. After bankruptcy, any debts that were discharged should be reported as “included in bankruptcy” or “discharged.” If they still appear as active, late, or in collections, it’s not just wrong – it’s a violation of your legal rights.

2. Accounts Still Listed as Open

Closed accounts should reflect their accurate status. If an account was part of the bankruptcy, it should not remain open or “current.” This kind of reporting misleads potential lenders and inflates your debt profile.

3. Incorrect Status Updates

Sometimes accounts are marked as “late” or “past due” even after being discharged. Creditors may continue reporting missed payments months after the discharge date, which can tank your score even more than the bankruptcy itself.

4. Repeated Hard Inquiries

If you’ve noticed a spike in hard inquiries, especially from creditors related to accounts discharged in bankruptcy, it could be an error or a sign of unauthorized credit checks. Too many hard pulls can bring your score down significantly and raise red flags with lenders.

5. Collection Accounts Still Showing as Active

Any collections tied to discharged debts should be marked “closed” or “discharged in bankruptcy.” If not, it’s a double blow to your credit.

6. Duplicate Reporting

The same debt might be reported by both the original creditor and the collection agency, making it look like you owe double. This is common, and it’s wrong.

7. Accounts Marked as “Charge Off” Instead of “Discharged”

Charge-offs mean the creditor gave up on collecting, but a discharge is different. It’s a legal resolution. If your bankruptcy discharge is misrepresented as a charge-off, that mislabeling could be harming your score and your credibility.

Yes, these are fixable! Each of these errors is fixable, but not always by yourself. Get a free legal consultation today!

What Causes Bankruptcy Credit Report Errors?

Credit reporting systems are complex, and while some mistakes are accidental, many come down to negligence.

  • Creditors might not update their reporting systems correctly.
  • The credit bureaus – Equifax, TransUnion, and Experian may not sync with updated bankruptcy filings.
  • In some cases, the creditor never reports the discharge at all.

Many consumers believe that once the court process is over, all of the banking, credit, retail, and financial companies involved automatically update their systems. But that’s not the case. You are often responsible for ensuring your report reflects the bankruptcy accurately.

And when it doesn’t? You’re also responsible for starting the dispute process which is where things get tricky.

What the Law Says About Bankruptcy Credit Report Errors

Under the Fair Credit Reporting Act (FCRA), the credit bureaus are legally required to report consumer information accurately. That includes reflecting the status of discharged debts properly after bankruptcy.

They also must investigate disputes within 30 days, provide written results of the investigation, and correct or delete inaccurate, incomplete, or unverifiable information.

When credit bureaus or creditors fail to fix bankruptcy credit report errors – or if they report misleading information after bankruptcy, they may be in violation of federal law. You can file a dispute yourself, but if the issue isn’t resolved, you may be entitled to compensation.

This is where a credit reporting errors lawyer, also called a consumer protection lawyer, comes in.

Can You Remove Bankruptcy From Your Credit Report?

Two of the most frequently asked questions post bankruptcy are:

Can you remove bankruptcy from your credit report? And, How long does bankruptcy stay on your credit report?

The answer to these questions depends on the type of bankruptcy you filed and if your bankruptcy was legitimate. 

If you have a legitimate discharge, the bankruptcy will typically remain listed on your credit reports for up to 10 years for Chapter 7, and up to 7 years for Chapter 13. After that, it will “fall off” your reports.

However, sometimes bankruptcy credit report errors play a role. First, if you’re seeing a false bankruptcy on your credit report – meaning you didn’t actually file, or you were misidentified, yes, that can and should be removed immediately.

Second, even if your bankruptcy is valid, you can and should challenge any incorrect reporting tied to it, including errors on discharged debts, old payment statuses, or improper account labels.

How to Fix Credit Report Errors After Bankruptcy

You can start by requesting copies of your credit reports (for free) from all three bureaus via AnnualCreditReport.com, the only site authorized by federal law.

Then:

  1. Go through each report and highlight any post bankruptcy credit report errors
  2. Gather your bankruptcy discharge paperwork and account records
  3. File a written dispute with each credit bureau. Include copies of documents, your dispute letter, and highlight the problem areas. We suggest filing via certified mail because doing so helps preserve your rights and creates a document trail. 
  4. Give the bureaus 30 days to investigate and respond.

If they correct the problem, great. If they deny it or claim they verified the incorrect information, it’s time to escalate.

What Kind of Lawyer Helps With Bankruptcy Credit Report Errors?

You’ll want a consumer protection lawyer or credit reporting errors attorney, specifically someone with experience in post-bankruptcy credit report cases.

At Consumer Justice Law Firm, our attorneys understand how bankruptcy law intersects with federal reporting regulations and how to hold credit bureaus accountable.

One of our lawyers will:

  • File disputes and demand letters on your behalf
  • Gather evidence of how the errors are harming you
  • File a lawsuit if the FCRA has been violated
  • Help you get money for harm you’ve suffered as a result (financial loss, emotional distress, and more)

And, you don’t pay unless we win your case. This levels the playing field for consumers facing off against major credit reporting agencies. Which is why we call our approach “no justice, no fee.”

What Can You Sue for if You Have Bankruptcy Credit Report Errors?

If your rights under the Fair Credit Reporting Act (FCRA) have been violated, you may be eligible for several types of compensation.

  • statutory damages of up to $1,000 for each violation
  • actual damages for financial harm such as being denied loans, facing higher interest rates, or even job losses.
  • emotional distress damages may also be awarded if the errors caused mental anguish
  • punitive damages might be available in extreme cases involving willful misconduct.
  • attorney costs and fees are included in the money you get.

When Should You Call a Lawyer?

If you have already filed a dispute about a post bankruptcy credit report error and your credit report has not been corrected, it’s time to seek legal help.

The longer these mistakes remain, the more harm they can cause to your financial wellbeing. You should consider calling a lawyer if a discharged account is still marked as open, active, or delinquent, if collection accounts or charge-offs weren’t updated after your discharge, or if you are seeing false bankruptcy information altogether.

Legal support is also important if you’ve suffered financial losses or stress because of any bankruptcy credit report errors.

Remember, you don’t have to face this alone, and you don’t have to accept bad credit due to someone else’s mistake.

What Makes Consumer Justice Law Firm Different?

When it comes to fighting for your rights, choosing the right legal team makes all the difference. Here’s why Consumer Justice Law Firm stands apart:

  • Client-Focused and Personalized: We don’t believe in one-size-fits-all legal solutions. We take the time to understand your situation, clearly explain your options, and build a strategy aligned with your goals.
  • Deep Commitment to Consumer Advocacy: We don’t dabble in consumer law – we live and breathe it. Our attorneys are members of the National Association of Consumer Advocations and the National Consumer Law Center, and thought leaders on consumer legal issues.
  • Accessibility and Transparency: Clients can expect honest guidance, timely updates, and real conversations about their case.
  • Fee-Shifting Based Representation: For most consumer protection cases, you don’t pay us unless we win for you. We believe justice shouldn’t depend on your ability to afford it. Our mission is to level the playing field and empower you to fight back, no matter who you’re up against.
  • Passion and Purpose: We don’t just take on cases, we take on causes. Our attorneys have built their careers fighting against corporate abuse, credit reporting errors, unfair debt collection practices, and other violations that harm everyday people. We take on big banks, credit bureaus, debt collectors, and employers – and we win. 

When you choose Consumer Justice Law Firm, you’re choosing a partner dedicated to your fight every step of the way.

Matt’s Fresh Start – Client Story

Matt always did what he thought was right – worked hard, paid his bills, and stayed out of trouble. He and his wife were expecting their first child, and though money was tight, he was optimistic about the future. To make ends meet, Matt picked up extra hours, skipped meals, and cut every corner he could. Fast food became a luxury, instant noodles and stress were his daily reality.

Then came the curveballs. His wife had complications during the pregnancy, which meant unpaid time off from work. Medical bills piled up. Then their car broke down – twice. Matt maxed out credit cards just trying to keep his family afloat. When the baby finally arrived, the joy was mixed with panic: the debt was crushing, and they were out of options.

Matt made the tough choice to file for bankruptcy, believing it would be a clean slate for his growing family. But even after the court discharged his debts, the problems didn’t stop. Creditors failed to update their records. His report still showed late payments, open accounts, and even active collections that should have been wiped clean. He was denied a car loan, and a job opportunity fell through after a background check flagged the errors.

That’s when Matt turned to us.

At Consumer Justice Law Firm, we took his case seriously. Our team uncovered multiple violations and quickly filed suit. We got his credit reports corrected and secured financial compensation for the damage done.

Today, Matt has a dependable car, a good job, and more importantly, a sense of stability for his wife and newborn son.

We helped him protect his future – and we’re ready to do the same for you.

GET JUSTICE! Don’t let bankruptcy credit report errors block you from a fresh start. Call for a free legal consultation now.