Credit Reporting and Debt Collection After Bankruptcy

Most people assume that a consumer who files for bankruptcy will not be able to get credit any time soon. That is not true.

When you file bankruptcy, a notation will appear in the “public records” section of your credit report and may remain there for ten years. Obviously, this public record item will negatively impact your credit score and some creditors will refuse to offer you traditional financing. However, other creditors look at the fact that you now have fewer debts to pay and are willing to offer you credit so long as your remaining obligations are current.

One of the main reasons people file bankruptcy is to get a fresh financial start. If the accounts discharged in your bankruptcy are not reported correctly, you are denied the full benefits of the bankruptcy discharge.

When your credit report fails to show that your debts have been discharged in bankruptcy, your credit score will be significantly lower than it should be because it appears that you still owe all the debts that were discharged. You may be denied credit or be forced to pay a much higher interest rate based on this false information.

Soon after your discharge order is entered, you should get copies of your credit report from the three main credit bureaus:

  • Equifax
  • Experian
  • TransUnion

Carefully review how each of them report the accounts included in your bankruptcy. If you have received a bankruptcy discharge, your credit report should show each account that was included in your bankruptcy as having a zero balance with the notation that it was discharged in bankruptcy. Anything else may be negatively impacting your credit score and you have the right to have that corrected.

Creditors often fail to properly report the bankruptcy discharge to the credit bureaus or refuse to update the information after you dispute it with the credit bureaus. This may be a violation of the Fair Credit Reporting Act, the bankruptcy discharge, and other applicable state and federal statutes or the common law, and may entitle you to compensation.

Because most every discharged debtor has this problem to some extent, we offer a FREE CREDIT REPORT REVIEW to individuals who have obtained a bankruptcy discharge. We can help you pull your credit reports when you come in, or you can obtain a free copy of your credit report from Equifax, Experian and TransUnion as explained on our How To Get A Free Credit Report page.

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PROTECT YOUR FRESH START! Your bankruptcy may not be reported properly! Let us help you protect your legal rights after bankruptcy.

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Debt Collection After Bankruptcy

If you have received a bankruptcy discharge, your creditors cannot legally attempt to collect the debts that were included in your discharge. But, shockingly, that does not stop them from selling your discharged debt to other entities who then might try to come after you for the money!

Business Week article

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Do not be fooled — once your debts have been discharged in bankruptcy, you no longer owe them and you have no legal obligation to pay them. Anyone who attempts to tell you otherwise may be violating the Fair Debt Collection Practices Act, the bankruptcy discharge, and other state or federal laws. If you have been contacted by anyone trying to coerce you into paying a debt that was discharged in bankruptcy, we invite you to contact us to set up a FREE CREDIT REPORT REVIEW and consultation as to your rights.
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Have you been told by a mortgage lender that your application was denied because your short sale is being reported as a foreclosure? YOU HAVE RIGHTS!

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