Better Reporting by Credit Bureaus on Bankruptcy Debts

Credit bureaus, such as Experian, Equifax, and TransUnion, are supposed to show that any debts that have been discharged through bankruptcy be made clear on a consumer's credit report. In the past, this updated information has not always been reflected accurately, showing eliminated debts as still due and payable. Having debts showed as still outstanding and payable when they are not would lower one's score, making it even worse after a bankruptcy is filed.

According to the President of consumer information at SmartCredit.com, this lapse has been corrected. The improved reporting has come as a result of lawsuits which were filed against the credit bureaus by consumers in cases where their reports showed them as delinquent on debts that had previously been eliminated in their bankruptcy filings. Some of the consumers asserted that the credit bureaus did not look into these errors even after they were notified of the discrepancies. As part of a settlement to the lawsuits, the credit report bureaus updated their systems to show that such debts were included as part of a bankruptcy and reflected no outstanding balance due. While a bankruptcy filing will stay on your credit report for up to ten years, this more accurate reporting will prevent your credit score from being lowered even more. After paying any remaining credit obligations in a timely manner once a bankruptcy case has concluded, most consumers are able to improve their credit score in a few years following a bankruptcy filing.

Bankruptcy Lawyer in Gwinnett County, Georgia

Filing for bankruptcy can be a difficult, confusing, and detailed process. Every case is different, with its own history and credit obligations and every consumer has different objectives and reasons for seeking bankruptcy protection. Add into this the different state and federal statutes involving exemptions, eligibility, and other factors and the decision-making proposition as well as the follow-up in paperwork can be intimidating. That is why it is best to consult with an experienced bankruptcy attorney in your local area.

Fred P. Kross P.C. assists and represents people in and around Gwinnett County with Chapter 7 and Chapter 13 bankruptcy as well as other debt relief alternatives, such as debt negotiation and settlement.. If you are facing a situation of crushing and hopeless debt, learn how you can become debt-free, save your home, keep your car, and stop wage garnishment and credit harassment. Contact the firm for a free consultation. Get the facts you need to determine the best debt relief solution for your needs.