29 October 2026
/ Jacob A. Kruer
Credit Reporting During and After Discharge: Chapter 7 and Chapter 13 Bankruptcies
If a debt is reaffirmed in a chapter 7 case, such as an automobile loan, the bankruptcy filing should be reflected on the account as of the petition date. During the pendency of the bankruptcy case, payment history should generally be suppressed unless a reaffirmation agreement has been executed, filed with the court, and not rescinded. If the debt is reaffirmed and the case is subsequently closed, payment activity may be reported in the ordinary course, while continuing to reflect the bankruptcy filing as of the petition date.
In chapter 13 cases, courts have reached differing conclusions regarding whether credit reporting may constitute debt collection activity. For example, the court in In re Keller held that "[t]he act of post-petition credit reporting is not, as a matter of law, a per se violation of the automatic stay."
However, in Matter of Sommersdorf, the court found that reporting a profit-and-loss write-off as to a co-debtor during an active chapter 13 case violated the co-debtor stay under 11 U.S.C. § 1301.
Whether a debt is being paid directly by the debtor or through plan payments in a chapter 13 case, a conservative approach to credit reporting is to suspend furnishing information to consumer reporting agencies during the pendency of the bankruptcy case.
Although some courts have concluded that credit reporting does not, in itself, violate the automatic stay, creditors and servicers should proceed cautiously. The Bankruptcy Code provides that an individual injured by a willful violation of the stay "shall recover actual damages, including costs and attorneys' fees, and, in appropriate circumstances, may recover punitive damages."
Post Discharge Credit Reporting
In chapter 13 cases involving long-term debt, such as a mortgage secured by the debtor's principal residence, the obligation may survive discharge pursuant to 11 U.S.C. §§ 1322(b)(5) and 1328(a)(1). In those circumstances:
- The bankruptcy filing should be reported as of the petition date.
- A conservative policy is to cease credit reporting during the pendency of the bankruptcy case in light of the automatic stay and, where applicable, the co-debtor stay.
- After discharge, if the mortgage obligation was not discharged, as is typically the case, the servicer may resume ordinary credit reporting practices consistent with applicable consumer reporting laws.
Mortgage Statements
As a best practice, mortgage statements sent during an active bankruptcy case should be directed to the debtor's bankruptcy counsel rather than directly to the debtor. However, bankruptcy counsel may provide written authorization permitting statements to be sent directly to the debtor. When such authorization is obtained, efforts should be taken to ensure that the statements are informational in nature, do not constitute debt collection activity, and contain appropriate bankruptcy disclaimers.
Recently, the Fourth Circuit Court of Appeals affirmed summary judgment in favor of mortgage servicers, holding that mortgage statements sent during a chapter 13 case were purely informational and did not constitute debt collection activity. The court emphasized that the statements contained appropriate bankruptcy disclaimers, which negated any intent to collect a debt in violation of the automatic stay.
Post-discharge credit reporting depends largely upon how the chapter 13 plan treated the mortgage obligation. Because many residential mortgages survive discharge under §§ 1322(b)(5) and 1328(a)(1), a conservative best-practice approach is to suspend credit reporting during the bankruptcy case and resume reporting after discharge, provided the debt remains enforceable.
Lastly, please keep in mind that every case requires its own independent analysis. This article is provided for informational purposes only and should not be relied upon as legal advice or as a comprehensive statement of the law applicable in every circumstance.
Our team is constantly monitoring changes within the industry. If you have questions on this topic and how Weltman may be able to assist with a borrower’s bankruptcy case or have questions relating to proper credit reporting, please do not hesitate to contact Cincinnati Attorney Jacob Kruer at any time.
Our team is constantly monitoring changes within the industry. If you have questions on this topic and how Weltman may be able to assist with a borrower’s bankruptcy case or have questions relating to proper credit reporting, please do not hesitate to contact Cincinnati Attorney Jacob Kruer at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
