I'm getting some conflicting information on how the balance of a discharged bankruptcy should be reported. Some say we should report the balance, while others state it should be reported as $0.00. Any guidance on this matter would be appreciated.

• CII = E or F (Discharged through BK Chapter 7 or 11)
• Account Status = status at time of petition
• Payment History = increment first position with value ‘D’ (plus prior months’ history)
• Current Balance = outstanding balance amount
• Scheduled Monthly Payment Amount = amount of the scheduled monthly payment due
• Amount Past Due = amount past due at the time of petition
• Date of Account Information = current month’s date
Note: After reporting the discharge CII E or F for all Filers, discontinue reporting the account.

That has been our standard procedure, What's giving me pause is the 2008 case of White v. Equifax, which directed that the bureau "shall update the tradeline or Collection Account to reflect a zero-dollar or blank account balance and past due balance as to the Consumer who received the bankruptcy discharge, so as to indicate that no debt is due or owing by the Consumer after the discharge date."

Then let them sue the credit reporting agencies again as those are the instructions from the current credit reporting guide.

Sounds like a plan. Thank you!

What chapter was it? Assuming its a consumer, Randy refers to 7. But Ch 13 could differ as the balance is forgiven. That said, this is an interesting read: https://www.natlawreview.com/articl...m-against-cra-reporting-non-zero-balance

"...the District Court held that the listing a non-zero “balance” on a credit report is not “by itself inaccurate” because a bankruptcy discharge eliminates personal responsibility for a debt, rather than the debt itself. The District Court also quoted Abeyta v. Bank of Am., N.A., 2016 WL 304308 (D. Nev. Jan. 25, 2016) for the proposition that “it was unaware of any statute or case providing that discharge in bankruptcy makes a debt unreportable … so long as only the fact of the previous delinquency is reported”..."

"The takeaway from Ewert is that a consumer reporting agency must be careful with how it reports discharged debt. Reporting a non-zero balance following a discharge in bankruptcy may be appropriate if the report also includes appropriate information related to the bankruptcy and discharge."

Then ask yourself, if the CRA is drawn into a lawsuit, the bank reporting the info will be as well. There is a cost in that. What happens if the bank recognizes the debt is uncollectable and reports zero? Is there harm to the bank, or is there reduced risk of being involved (even indirectly) in litigation?

Valid points to consider. Thank you!