Credit Scores After Bankruptcy
The law requires that Credit rporting must be truthful. That means once you receive your discharge, the trade lines on your credit reports should reflect a $0.00 balance and “discharged in bankruptcy” notation. Alternatively, it is possible some trade lines may disappear altogether without continued reporting. Notwithstanding, reporting anything else is simply unlawful. For instance, any of the following reporting after a Bankruptcy Discharge would be both untruthful and unlawful:
1) Any balance other than $0.00
2) Any Post-Petition past due amounts
3) Charge Off on (date after bk filing date)
4) 90 days past due(if past due arose after filing date)
5) Foreclosure(if took place after bk filing date)
6) Repossession(if took place after filing date)
It is unlawful for a creditor to upload such false information after discharge or fail to update and correct previous information. Unlike other bankruptcy attorneys, we make sure all the credit bureaus are notified of your Bankruptcy Filing to trigger accurate reporting. Likewise, we make sure all the credit bureaus are aware of the Bankruptcy Discharge. The notifications to the credit bureaus trigger laws under the Fair Credit Report Act (FCRA) which then require communications to take place between the credit bureaus and your creditors to make sure all accounts are reporting a $0.00 balance and “included in bankruptcy.”
Unlawful credit reporting allows you to take legal action against offending creditors. Ca Civ Code 1785.25(a) prohibits creditors from reporting “incomplete or inaccurate” information subjecting them to actual damages, punitive damages up to $5,000 per violation, pain and suffering, attorney fees and costs, and injunctive relief per Ca Civ Code 1785.31. Depending upon the circumstances, such lawsuits could be substantial. For example, in September, 2007, over a million dollars was awarded against Wells Fargo for false reporting!
So why do creditors continue to falsely report? Its simple. False reporting makes money. Many creditors will leave false information on credit reports in the hopes that the debt might be paid in order to repair credit, refinance a home, take advantage of an unsophisticated debtor, etc. And despite all the lawsuits we bring against creditors for such illegal conduct, it still remains more profitable to pay out claims which is only a small fraction of all the money overall they are making from the false reporting.
So continue to monitor your credit after Bankruptcy. We strongly recommend that you get a copy of your credit report 45 to 60 days after discharge to confirm only truthful information is being reported. Also, remember reporting is done monthly, so its advisable to check your credit every few months. You can do so either by us pulling your credit for a fee or through annualcreditreport.com. If your credit report is reporting anything other that a $0.00 balance and “included in bankruptcy,” please let us know.
REMEMBER TO ALSO ENROLL IN THE CREDIT REBUILDING PROGRAM! To Enroll in the Credit Rebuild Program: Click Here
The San Diego Bankruptcy Attorneys of the Doan Law Firm are California’s Largest Family of Attorneys, Specializing in Bankruptcy and Non-Bankruptcy Alternatives at any of our San Diego Bankruptcy offices,. Simply all (760) 450-3333.
PURSUANT TO THE NEW LAWS, WE MUST DISCLOSE THAT WE ARE A DESIGNATED DEBT RELIEF AGENCY UNDER 11 U.S.C. ß528. WE HAVE SUCCESSFULLY ASSISTED TENS OF THOUSANDS OF SOUTHERN CALIFORNIANS IN FILING BANKRUPTCY, DISCHARGING BILLIONS OF DOLLARS, AND WILL CONTINUE TO DO SO UNDER THE LAWS.