New Jersey Consumer Protection Attorney

3 Tips To Easily Resolve Credit Reporting Issues After Bankruptcy

Looking for how to scale the next hurdles after receiving a bankruptcy discharge in New York by resolving credit reporting issues?

Filing for chapter 7 bankruptcy often provides the much-needed breather from overwhelming financial responsibilities. It takes a huge amount of courage for the average American to file for bankruptcy. However, the myriad of issues or irregularities being reflected on your credit report after bankruptcy often dwarfs the relief you get from having your debts legally discharged. In 2018, the Administration Office of U.S. Courts reports that 775,578 persons filed for bankruptcy less than 796,037 in 2017, and 825,364 bankruptcies were terminated in 2018 alone. Great statistics right? But not so great when it comes down to issues Americans face on their credit reports post-bankruptcy.

But hey, we can help you. We offer a course called 7 steps to a 720 credit score. However, if you do not want to take the course, below are issues that you can fix. If you need help, we can sue on your behalf.

Do you want some easy and permanent fixes for credit reporting issues after bankruptcy discharge? This post deals exclusively on highlighting credit reporting issues and how to easily resolve them.

Issue #1: Your accounts with creditors not showing “closed” or “included in bankruptcy” or similar language after discharge from bankruptcy.

  • How it Ought to Be:

One of the major perks of filing for bankruptcy is that all your debts must be reflected as discharged once you are cleared from being bankrupt. Thus, the accounts should be tagged as “included in bankruptcy” or “discharged with bankruptcy” or any other similar language. This is also true for a foreclosure action and the way it is listed on your credit report.  You may not have even been a creditor on the foreclosure action, and it may appear on your credit report when it should not be there.

However, many consumers discharged from bankruptcy still end up seeing the credit accounts as “open” or with other comments that insinuate they are still owing the debts.

  • How to Resolve

You need to send your bankruptcy information or confirmation order obtained from the court to the credit bureaus. The credit bureaus are the ones who update your credit report. You can also send a copy to the debt collection agency or any credit agency responsible for furnishing the credit bureaus with details of such account.

If the accounts are not corrected, you may have the right to legally enforce them to correct such information by order of the Court.

Issue #2: Dismissed bankruptcy still being displayed on your report

  • How it Ought to Be

If your bankruptcy was dismissed by the court at the stage of filing or before you were discharged, the natural course of things would be for the credit bureaus to reflect the same on your credit report. But this is not often the case.

  • How to Resolve
    • Obtain the certified true copies of the court documents showing the dismissal
    • Formally request the credit bureaus to remove the bankruptcy filing and back up your request with the copies of court documents
    • If any or all of the credit bureaus refuse, neglect or dispute the dismissal, you may have to obtain a court order to enforce the removal

Issue #3: Inaccurate or false account entries on your credit report

  • How it Ought to Be

Credit reporting and the agencies involved are regulated by the Fair Credit Reporting Act. The three major credit bureaus which are responsible for updating your credit report are mandated by law to verify the entries being updated. The same regulation applies to debt collection agencies who furnish the bureaus with your debt information. Any false or incorrect entry can be disputed and legally pursued if the credit bureau fails to remove it.

Issue #4: Bankruptcy filing being displayed on your credit report – before and after ten years from filing

  • How it Ought to be

Bankruptcy is a low-cost solution to eliminate debt that is a legal procedure is regulated by the U.S Bankruptcy Code. Bankruptcy can get rid of taxi medallion loan for a million dollars debt, medical debt, credit card debt, stop a foreclosure, stop a sheriff sale in NJ, and eliminate many other types of debt.  Under the provisions of the law, a filing for Chapter 13 bankruptcy may be displayed on your credit report for up to 7 years while a Chapter 7 bankruptcy may last up to 10 years. Therefore, if after been discharged from either bankruptcy proceedings, you will likely see the filing displayed on your credit report and it is not illegal unless it exceeds the number of years as stipulated above.

  • How to Resolve

You really cannot object to the display of bankruptcy filing on your credit report if it is still within the range provided by law. All you can do is to be patient.

However, if it has exceeded the range of years provided by the Code, you will have to take steps to rectify it.

  1. You can send a mail to the credit bureaus, providing them with the bankruptcy information or records which shows when you filed and what year the filing ought to have been removed. This should solve the problem.
    1. If the change is not reflected or they provide you with reasons why they would not remove it, you may have to obtain a court order to enforce the removal

Dealing with credit reporting issues after crossing the huge hurdle of bankruptcy can be emotionally draining. You can get them easily done if the credit bureaus are willing to cooperate. Otherwise, you may need to force their hand which may involve more technicalities. But this can be well handled if you hire the right attorney.

Contact a Credit Repair Attorney today.

Subhan Tariq, Esq. is a federal consumer rights attorney with offices in Jamaica Estates, NY and Jersey City, NJ. Mr. Tariq grew up in 
Flushing and Queens Village and is deeply committed to helping the people in the community including volunteering with many non-profit organizations.

Related Posts

Leave a Reply