Filing for bankruptcy is meant to provide a fresh start for people in a bad financial fix. It does so by wiping out debts and banning creditors from collecting them. But how does bankruptcy on a credit report affect your life?
Bankruptcy on Credit Reports
Bankruptcy on credit reports can show up in basically two different ways. Firstly, the bankruptcy itself may be reported as a “public record,” and second, individual accounts included in your bankruptcy may mention the bankruptcy, with phrases like “Discharged in Bankruptcy” and “Included in Bankruptcy.”
All of this is perfectly legal: debts discharged in bankruptcies can be reported, and bankruptcies themselves can be reported. However, a bankruptcy on a credit report and discharged debts on a credit report are still subject to the usual time limits. And, importantly, they’re subject to the golden rule of credit reporting: what’s reported on must be accurate.
However, credit reporting errors remain common, and errors related to bankruptcy are no exception. A bankruptcy-related error might include failing to report that a debt was included in a bankruptcy, incorrectly reporting that money is still owed on a discharged account, or even incorrectly reporting a debt as included in bankruptcy when it was not.
Don’t Feel Powerless Against Credit Reporting Errors
If you have credit reporting problems after a bankruptcy, give us a call and let us see if your bankruptcy is being accurately reported.