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Account statuses

Included in Bankruptcy on a Credit Report: What It Means

Definition

"Included in bankruptcy" means an account was listed in your bankruptcy case. Once the debt is discharged, the account should show "discharged in bankruptcy" with a $0 balance, because you no longer owe it. The account's own history can stay for seven years, separate from the bankruptcy record.

Also called: included in bankruptcy, discharged in bankruptcy, IIB, Chapter 7 discharged, Chapter 13 included

What it means

When you file bankruptcy, the accounts you list in the case should be updated to say they are included in the bankruptcy. Experian explains that after the discharge they should change to “discharged in bankruptcy.” In a Chapter 13 case, they show as included until you finish the repayment plan.

A discharged debt is no longer owed. The FTC’s 2011 staff report says a report may list a discharged account, and the bankruptcy itself, as long as the account shows a zero balance.

Where it comes from

Two different items appear on your report. The bankruptcy case is a public record, and under 15 U.S.C. § 1681c(a)(1) it can be reported for up to ten years. Each account in the case is reported by its own creditor and generally follows the seven-year rule for that account’s delinquency. The FTC report confirms the two run separately.

Section 1681c(d) also says that if the bureau reports a bankruptcy, it must identify the chapter when the source gives it, and must note a voluntary withdrawal once it receives proof.

Common errors

  • An account listed in the bankruptcy still shows a balance or “past due” after discharge.
  • The account was never updated to “included” or “discharged,” so it looks like an open unpaid debt.
  • A collector or debt buyer reports a discharged debt as currently owed.
  • An account that was current at filing is relabeled as charged off. The FTC report calls labeling an account “charged off” when it was open and not charged off at filing inaccurate or misleading.
  • An account you reaffirmed or kept paying shows as discharged.

How to dispute it

Get your discharge order and the bankruptcy schedules that list your creditors. If an account from your bankruptcy isn’t marked, Experian suggests sending the bankruptcy schedule that lists it so the account can be updated. Dispute each wrong account with every bureau that shows it, and tell the bureau what the account should say: “included in bankruptcy, discharged on this date, $0 balance.” Send the same documents to the creditor or collector.

When it can be an FCRA violation

A bureau must use reasonable procedures for accuracy under § 1681e(b) and must reinvestigate disputes under § 1681i. A furnisher must investigate disputes it receives from a bureau under § 1681s-2(b). Reporting a balance on a discharged debt after a dispute can support claims against both.

If a discharged debt still shows a balance after your dispute, FCRA Attorneys offers a free case review, and you pay no fee unless we win.

Related

Sources

Updated November 2026. This glossary is written by FCRA Attorneys from public sources. It is general information, not legal advice, and is not affiliated with any credit bureau or industry association.

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