Bankruptcy Discharge Credit Report

What does your credit report look like now that your bankruptcy has been discharged?
by: Jonathan Goldsmith Cohen
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A discharge of bankruptcy, at the conclusion of your Chapter 7 or Chapter 13 case means that you are no longer responsible for the debts you included in your bankruptcy. As a result, your creditors are obligated to report debt forgiveness accurately to the credit reporting bureaus. Under federal law, once a borrower has erased debt in bankruptcy, banks are required to update your credit reports to indicate that the debt is no longer owed, and remove any notation of “past due” or “charged off”.

This week, Bank of America and JPMorgan Chase agreed to erase debts from credit reports after a bankruptcy filing within the next three months to reflect that the debts have been extinguished.

What does your credit report look like post-bankruptcy? For my clients, part of my bankruptcy services include coming back to the office post-discharge to see if there are any errors on their credit reports. Then we work on correcting those errors.

The New York Times (www.NYTimes.com) says two of the nation’s biggest banks will finally put to rest the zombies of consumer debt — bills that are still alive on credit reports although legally eliminated in bankruptcy — potentially providing relief to more than a million Americans. Read Bank of America and JPMorgan Chase Agree to Erase Debts From Credit Reports After Bankruptcies Here.