New Jersey Lawyer Explains About Bankruptcy And Credit Reports
A debtor’s credit report will reflect the bankruptcy filing. More specifically, each creditor entry should reflect that the account is in bankruptcy. Also, upon the filing, the public record portion of the credit report should reflect the bankruptcy case number, chapter filed and the date of the filing. If this information is not properly reflected on the credit report, the information may be corrected by sending each credit bureau an appropriate request, together with supporting documents.
At the completion of the bankruptcy process, the debtor will receive a court order indicating a discharge of certain debt. The debtor’s credit report should properly reflect this discharge, next to each creditor that is related to the discharged debt. Also, when the debt is discharged, the public record portion of the credit report should also reflect the status of the discharge. The debtor may pursue the same correction process as explained above, in the event that this portion of the credit report is inaccurate.
Depending on the credit bureau, a chapter 7 bankruptcy case may be on your credit report for seven years, from the filing date. A chapter 13 may be on your credit report for ten years from the filing date. It is a myth that a person is unable to obtain credit if a bankruptcy filing is on a credit report. A person’s credit score may be repaired relatively quickly, by applying the appropriate methods, which will allow for a lower interest rate, even though the bankruptcy notation is on a person’s credit report.
Robert Manchel, the NJ. bankruptcy attorney may be contacted at (866) 503-5655.