CREDIT REPORTING AFTER BANKRUPTCY – IS IT ABOUT TO GET BETTER?

 

 

 

CREDIT REPORTING AFTER BANKRUPTCY – IS IT ABOUT TO GET BETTER?

            One of the leading questions that I receive while consulting with people is about the effect of bankruptcy on a credit report. I try to tell people that federal law requires that all discharged debts be reflected as discharged, and not some type of “charge off” or “90 day delinquent” account after a bankruptcy discharge has been entered. However, too often, that is not the case. Banks and mortgage companies routinely fail to update the credit reports of millions of American each year to reflect the current status of discharged debt. Now a landmark settlement may finally produce some results for those affected by such a situation. In this article:

http://www.nytimes.com/2015/05/08/business/dealbook/bank-of-america-and-jpmorgan-chase-agree-to-erase-debts-from-credit-reports-after-bankruptcies.html?_r=0

            The New York Times discussed the causes of the credit reporting issues (Hint – it involves banks making money off of holding consumers’ credit reports hostage) and the potential fix to this problem.

            I see this type of behavior by lenders repeatedly after discharge in all types of bankruptcies. Our office provides a full service bankruptcy to our clients. If they have credit reporting issues which can’t be cleared up in the Bankruptcy Court, we put them in touch with knowledgeable credit reporting attorneys who can repair the problems through federal court litigation. Don’t let your credit report be held hostage or feel that you must pay discharged debt in order to clear your credit report.

            At Mickler & Mickler, we attend Court on a regular basis. We have the experience and knowledge to ensure that you receive the correct advice when confronted with difficult financial decisions related to filing bankruptcy. Contact us at 904.725.0822 orbkmickler@planlaw.com.

 

Bryan K. Mickler