Legal Question in Bankruptcy in California

Credit Reporting

I was in a Chapter 13 since 2002 that was paid off in December 2004. Volvo has been reporting me 30 days late each month since 2003. I paid them off in November 2004 before paying off the entire Chapter 13 plan. but in December 2004 I had a zero balance and they reported me as 120 days late. I was told by them that this was legal because the plan was paid off. My question is: are creditors supposed to report monthly histories while in a Chapter 13 Plan.

Thank You.


Asked on 2/18/05, 6:47 pm

1 Answer from Attorneys
Peter De Bruyn Law Offices Of Peter De Bruyn

Re: Credit Reporting

Volvo's negative reports violated both the automatic stay as well as the discharge injunction. The filing of a bankruptcy invokes Section 362 of the Bankruptcy Code that operates as a stay, applicable to all entities of the commencement or the continuation of any process, or other action, or proceeding against the debtor. A creditor who violates this order can be required to pay damages and attorneys to the debtor. Additionally, under the Federal fair Credit Reporting Act, creditors are required to report only 100% accurate credit information and to investigate any claims of inaccuracy after receiving such a claim. While the payments made by the chapter 13 Trustee to Volvo might have been late pursuant to your original contract, they were timely under the confirmed chapter 13 plan. Additionally, since Volvo accepted the payments without objection, they waived any right to report these payments late. Therefore, Volvo must immediately delete, update and correct these very serious reporting errors and supply a corrected credit profile to you forthwith.

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Answered on 2/19/05, 8:25 am


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