Many people who are unable to pay their debts file for bankruptcy. However, thousands of people in Iowa and throughout the country who discharged their debts through bankruptcy have found that the debts were still on their credit reports years later. Because of this, multiple banks and financial establishments are being investigated by the U.S Trustee Program.
Iowa residents may not be aware that some of the largest banks are keeping debts active on credit reports long after debts have been discharged by the courts. Once these debts are discharged, banks and other creditors must comply by revising credit reports to show that the debts are not active. Instead, some banks have tried to force consumers to pay for debts that they no longer owe. The U.S. Trustee Program is investigating certain banks, including Synchrony Financial and Bank of America, for ignoring discharge orders, which is a violation of federal bankruptcy.