| How should your bankruptcy be reported on your credit report? |
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Your credit report should show the that the debt(s) discharged in bankruptcy and the balance should be reported as “0.” Why is this important? The Fair Credit Reporting Act has commentary which states that a credit report entry that reflects a past due account is treated differently by prospective creditors in evaluating credit applications than an entry that reflects a debt has been discharged in bankruptcy. The key difference is the discharged debt is no longer an obligation, while the past due account is a legally enforceable obligation that must be resolved. |