Credit Balances on credit report after discharge. I was discharged in April of 2015.
Upon checking my credit score with the monthly Equifax service I noticed that all the credit accounts and balances were still showing in my report.
I contacted CIBC and they updated all balances to zero within a week. I’m in the process of doing so with the other creditors as well.
My questions are:
1) Even though the credit bureau correctly tagged the accounts as
“included in bankruptcy” – should these accounts still show as open – with balances after discharge? I would expect they would show as closed with zero balances after discharge.
2) The person at CIBC who handled the clearing of my balances suggested that there was a step that was missed during my discharge where the creditors were not notified of my discharge. Can you comment on the correct procedure that should be followed?
3) What steps would you recommend to rectify the situation? I have sent all my information to Equifax and they have updated the balances to “unknown” but all the accounts still show as open and the max credit is included in my “Total Credit Limit”? As a result, this shows as a very high level of credit that I currently have available.
Thanks in advance.
Your work is much appreciated.
The person at the CIBC is not giving you the correct information. The procedure is straightforward and is as follows:
The Office of the Superintendent of Bankruptcy will update Equifax and TransUnion of the fact of your discharge from bankruptcy.
The credit bureaus will correct mistakes on your credit report. They will not remove information that is correct.
Now that you have your Absolute Discharge, you need to clean up your credit score or ensure that it is clean already. It is very common to see multiple errors on credit scores.
Please refer to our page on rebuilding credit:
Earl Sands, Licensed Insolvency Trustee