Errors in your credit report after your bankruptcy discharge

Credit Report

Errors In Your Credit Report

If you file for bankruptcy, all of your debts that are part of the bankruptcy should be reflected on your credit reports.  If you have 10 creditors as part of your bankruptcy, all of the ten creditors should be zeroed out on your credit reports.  However, there are many cases that credit reporting agencies do not report the discharged debts as part of your bankruptcy and what that does is really hurt your credit scores.  A bankruptcy will drop your credit scores by at least 100 points or more.  This massive drop of your credit scores reflects the zeroing out of the creditors on your bankruptcy.  By not including a creditor as part of the bankruptcy discharge, it reflects that you are still owing that debt which will even drop your credit scores even more.

Errors in your credit report can drop your credit scores

If the debt that was included as part of your bankrutpcy petition has been discharged but the credit reporting agencies are not reporting as such, it reflects that you are currently late on that particular debt which can cause an additional drop in your credit scores.  It is hard enough in trying to repair your credit and improve your credit scores and this erroneous reporting makes it much more difficult.

Credit Reporting Agencies

The three credit reporting agencies, Transunion, Experian, and Equifax, had a habit of recording discharged debts that were part of the consumer bankruptcy’s discharge and reporting it as current bad debt, thus hurting the consumer from getting mortgage loans and other forms of credit.  Having these discharged bankruptcy debts being recorded as active debts lowers the consumer’s credit score.

Recent studies by the FTC reveal there are errors in your credit report; 25% of those surveyed

Recent studies conducted by the Federal Trade Commission revealed that 25% of consumer’s have errors on their credit report.  At least 10% of the consumers with errors on their credit report were errors that were serious enough to cause a dramatic impact on the consumer’s ability to secure credit or loans.

Everyone should check their credit report on a regular basis to monitor their credit and to check for any errors.  Everyone is entitled by law for an annual free credit report by each of the three credit reporting agencies; Transunion, Equifax, and Experian.

Related> Credit Inquiries On Your Credit Report

Related> What Do Underwriters Look In Credit Reports?

Related> Minimum Credit Scores For Mortgage Programs

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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