Your Credit Report and Bankruptcy
Common Errors on Credit Reports
It is estimated that a majority of the credit reports of people who have filed bankruptcy contain errors. Even if you have not filed bankruptcy, your credit report may contain errors. Many of these errors can make it difficult or expensive to obtain credit in the future. If you are going to receive the fresh start that bankruptcy entitles you to, you need to ensure that all of your debts are properly reported on your credit reports.
Common Errors on Any Credit Report
The more common errors that may appear on any credit report include:
- inaccurate reporting of the delinquency date or date of last activity;
- reporting a debt that is too old to be reported;
- inaccurate payment history;
- inaccurate balances, collection activity, or total available credit; and
- unauthorized inquiries.
These errors will affect your ability to get credit or the interest rate you will have to pay.
Bankruptcy-Related Credit Reporting Errors
If you have filed bankruptcy, the chance that your credit report will contain errors increases. In addition to the more common errors, you should be alert to errors that limit the value of your bankruptcy discharge. These errors apply only to debts discharged in your bankruptcy, and include:
- continuing to report a balance due;
- reporting a delinquency date or date of last activity after your bankruptcy filing;
- reporting a bankruptcy filing on the credit report of a spouse who did not file for bankruptcy;
- reporting a discharged debt as “charged off”;
- not reporting a payment history for loans you reaffirmed;
- inaccurate date reported for the bankruptcy filing;
- incorrect bankruptcy chapter filed; and
- incorrect Chapter 13 plan payment or percentage paid.
You Can Fix This
Federal law establishes certain procedures for correcting errors on your credit report. Your credit report will contain instructions on how to dispute errors on that report. It is important that you dispute all errors with the credit reporting agency that issued the report. You should explain what is wrong with the information reported, identify the account you are disputing, and attach copies of any supporting documentation you have. I suggest that you do this in writing and keep a copy of the letter. You may also want to send the letter certified mail, return receipt requested.
If the first letter does not correct the reporting error, try again. If the second letter does not resolve the issue, you may wish to contact legal counsel. In certain circumstances, you can file a lawsuit to get the incorrect information removed from your credit report.
Remember, you can request removal or correction of inaccurate or incorrect information. However, if the information in the report is correct and in compliance with the law, you may not legally require its removal.
How to Obtain Your Credit Report
You are entitled to receive one free copy of your credit report from each of the three major credit reporting agencies each year. You can obtain these free reports online at www.annualcreditreport.com. This website also contains instructions for obtaining your report(s) by telephone or mail, if necessary.
If You Want Me to Do This for You
I will be happy to review your credit report and demand corrections on your behalf. Obviously, I will expect to be paid for this service. If you want my assistance, please call me to schedule an appointment to meet with me. We will discuss my fee schedule at that time. You will need to bring your credit report with you to that appointment. I will be happy to review the credit report with you and send letters requesting corrections. If this does not resolve the problem, we can discuss whether or not you wish to pursue litigation to resolve the issue.