So, I am 3.5 years in to a 5 year repayment plan. One creditor, who is also getting paid by the trustee every month, is reporting to the CRAs that the status of the account is in BAD DEBT/COLLECTION, and the original balance is listed in the tradeline. The payment history shows 3 years worth of 90+ days late.
I have been trying to do some research on this to figure out how to address this. It seems there is some case law to suggest that reporting lates to the CRAs while in a Chapter 13 repayment plan is a violation of the automatic stay. Other case law goes against this.
As a practical matter, the original credit agreement was rewritten by the BK judge in the confirming order. If that is the case, all of the information being reported is based on the original (outdated) agreement. In fact, I am bound by the confirming order and couldn't go outside the plan and pay the creditor per the original agreement, even if I wanted to.
It seems to me the creditor is violating the automatic stay (BK Law) and knowingly reporting inaccurate information (FCRA).
Does this make sense?
If the creditor is reporting wrong information, you should first check it with all 3 CRAs. Thereafter, you may get it disputed with the bureaus.