The Borrowers' credit reports are showing a bankruptcy when in fact it was the Guarantors who have filed, not the Borrowers. Is that correct?
I can find on special mention codes to help explain that the bankruptcy is that of the Guarantor and not the Borrowers. Is there something we can do on our end to better reflect which party filed bankruptcy?

You are going to have to give us more details than this. Who is the borrower, who are the guarantors, what type of loan is this? Why would the bankruptcy of a third party show on a consumer's report to begin with??

This is a consumer loan to joint Borrowers. The parents' of one Borrower signed a guarantee.

I am still confused as to what a guarantor declaring bankruptcy has to do with the joint borrowers. It just means your guarantee is most likely worthless. Are they not paying the loan as required under the loan agreement?

Have you verified all your system coding? perhaps you have something on you guarantor addenda that credit reporting is turned on and that is the connection that is linking the bureaus to list the bankruptcy on the borrowers report.