Can a creditor report late payments during Chapter 13?
All payments were made on time through garnishment from paycheck. Late payments were posted in 2007-2009, but I filed in 2006. Is it even legal for them to post late payments while in Chapter 13.
Posted August 18th, 2010 in Bankruptcy Q And A. Tagged: chapter 13, garnishment, late payments, paycheck.
If there are arrears (back payments) to creditors included in your Ch 13, some creditors inaccurately report "late" payments until all arrears are repaid. This is incorrect. During Ch 13 your creditors may report it as IIB (Included In Bankruptcy) or as "Paid as Agreed" but should not be reporting your payments as "late."
Talk to your bankruptcy attorney to determine whether the creditors inaccurate reporting constitutes a violation of the automatic stay. Sometimes you may be able to collect damages for stay violations.
August 18th, 2010 at 7:03 amThey are required to post any and all late payments, lets say in the event you pull out of chapter 13. Lets face it since you are filing BK it is not going to make your credit any worse than it is about to be.
August 18th, 2010 at 7:03 am