Can a former creditor put a notation of a still existing credit balance years after a bankruptcy discharge?

UPDATED: Feb 5, 2014

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Can a former creditor put a notation of a still existing credit balance years after a bankruptcy discharge?

I went through a bankruptcy about 8 years ago. The bankruptcy was completed on time and I received a letter conveying that it had been completely satisfied. A bank that we had financed a vehicle through sent a notice after the bankruptcy was final and stated they wanted an additional $1,211. After contacting the bankruptcy court because they would not send the title to the car, the court contacted them and everything was “settled”. I recently reviewed my credit score on credit and find that the lending institution has filed credit report of a unpaid balance. Is this legal or may I have legal recourse for them worsening my credit score maliciously?

Asked on February 5, 2014 under Bankruptcy Law, Texas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Figuring out when negative information is removed from your credit report can be very confusing, and understandably so. Positive open credit information remains indefinitely, and paid positive accounts remain 10 years, making your credit report a great benefit for you in obtaining and using financial services.

Negative information is purged from your credit report, so that if you have credit problems you will have an opportunity to build a good credit history over time. Delinquencies (30 — 180 days) can remain seven years from the date of the initial missed payment after which the account was never again current.

Answer: Yes the negative mark can remain after all those years legally.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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