If your bankruptcy was discharged in October, you probably expected your credit report to start looking better.
So it can feel shocking — and honestly unfair — when you check your credit and still see:
- late payments
- missed payments
- delinquent balances
- charge-offs
- accounts marked “past due”
especially on accounts that were included in your bankruptcy.
A common question we hear is:
“My bankruptcy was discharged, but I’m still seeing late payments from accounts that were closed in bankruptcy. Is that supposed to be there?”
Let’s break down what’s normal, what’s not, and what you should do next.
First: Bankruptcy Does Not Erase Credit History Overnight
A bankruptcy discharge wipes out your legal obligation to pay qualifying debts.
But a discharge does not automatically erase the history that happened before the bankruptcy.
That means if you had missed payments before filing bankruptcy, those late payments may still appear as part of your credit history.
So yes — in many cases:
Old late payments from before the bankruptcy can still show.
That part is normal.
What Bankruptcy Is Supposed to Change on Your Credit Report
Even though old late payments may remain, accounts included in bankruptcy should usually be updated to reflect that they were discharged.
Typically, after discharge, the account should show something like:
- “Included in Bankruptcy”
- “Discharged in Bankruptcy”
- Balance: $0
- Account closed
That is what accurate reporting looks like.
What Is NOT Supposed to Happen After Discharge
Here’s where the problem comes in.
After you file bankruptcy (and especially after discharge), creditors generally should not continue reporting the account as:
- still past due
- still charging late payments every month
- still increasing the balance
- still in active collections
- still “open” and unpaid
A discharged debt should not keep showing new monthly late payments after the bankruptcy filing date.
That can be inaccurate credit reporting.
The Key Question: Are the Late Payments Old or New?
To determine whether the reporting is correct, ask yourself:
Are the late payments dated before you filed bankruptcy?
If yes, those late payments may remain on the credit report.
Are the late payments continuing after you filed bankruptcy or after discharge?
If yes, that is usually wrong and may violate consumer credit reporting laws.
Why This Happens
Even though creditors receive notice of the bankruptcy, credit reporting mistakes happen all the time due to:
- automated reporting systems
- debt being sold to a collection agency
- the creditor failing to update the account status
- incorrect coding after discharge
- poor communication between creditors and credit bureaus
In many cases, it’s not intentional — but it still causes harm.
How Long Can Bankruptcy Stay on Your Credit Report?
A Chapter 7 bankruptcy can remain on your credit report for up to:
10 years from the filing date
That’s normal.
But individual accounts included in the bankruptcy should still be reported accurately.
Can Late Payments Stay on Your Credit Report Even After Bankruptcy?
Yes, late payments from before filing can remain for a period of time.
Late payments typically remain on your credit report for up to:
7 years
So even if the account was discharged, the history leading up to the bankruptcy may still be visible.
That’s frustrating, but it is usually legal.
But the Account Should Not Show You Still Owe Money
After discharge, the account should not appear as if:
- you are still behind
- you are still being billed
- you still owe a balance
- you are still being penalized each month
If it does, the reporting may be inaccurate and should be disputed.
What Should You Do If Your Credit Report Is Wrong?
If you believe a discharged account is being reported incorrectly, here are the steps you should take:
Step 1: Get Copies of All 3 Credit Reports
Check:
- Experian
- Equifax
- TransUnion
Sometimes the account is correct on one report and wrong on another.
Step 2: Look for These Red Flags
You should dispute the account if it shows:
- balance still owed after discharge
- account still “open”
- new late payments reported after filing
- account not marked “included in bankruptcy”
- collection account still active
- incorrect dates of delinquency
Step 3: Dispute the Account With the Credit Bureaus
You can file a dispute directly with each bureau.
You should include:
- your bankruptcy case number
- your discharge date
- a copy of the discharge order
- proof the creditor was listed in the bankruptcy
Step 4: Contact a Consumer Protection Attorney
If the credit bureaus or creditor refuse to correct the reporting, you may have legal claims under laws such as:
- the Fair Credit Reporting Act (FCRA)
- the Fair Debt Collection Practices Act (FDCPA) (if a collector is involved)
In some cases, consumers may be entitled to damages and attorney’s fees.
Should You Be Worried If It’s Only Showing Old Late Payments?
If the late payments are from before bankruptcy, and the account is correctly marked as:
- included in bankruptcy
- discharged
- balance zero
then it may simply be part of your credit history.
It’s not ideal, but it does not mean the creditor can collect.
The Bottom Line
If your bankruptcy was discharged in October and you still see late payments:
✅ Late payments from BEFORE filing may still appear
❌ Late payments should NOT continue to update AFTER bankruptcy
❌ The account should not show an active past-due balance
✅ The account should show “included in bankruptcy” and a $0 balance
If the reporting is inaccurate, you may need to dispute it or seek legal help.
Final Thought: Bankruptcy Gives You a Fresh Start — Your Credit Report Should Reflect That
Bankruptcy is meant to relieve you of debt and allow you to rebuild.
But inaccurate credit reporting can hold you back and damage your score unnecessarily.
If a discharged debt is being reported the wrong way, don’t ignore it.
You have rights, and there are steps you can take to correct it.
Need Help Fixing Your Credit After Bankruptcy?
If your bankruptcy was discharged but your credit report is still showing incorrect late payments or balances, our office can review the reporting and help you determine what steps to take.
You worked hard for your discharge — you deserve the clean slate you earned.
