What happens AFTER you file for bankruptcy?

Keeping track of your credit is a crucial step in rebuilding your credit profile, especially after a bankruptcy.  Let’s take a closer look at what happens, after the dust has settled.

Q:  What happens AFTER you file for bankruptcy?

THD Expert:  When you file for bankruptcy, the law says that you must list all of your debts, even if you plan on continuing to pay them. You pick and chose what debts you want to continue paying- such as the house if you want to live there or your car if you need it to get to work.  But you don’t pick and chose what debts are covered.  When a creditor is notified about your bankruptcy, they then report to the credit bureaus that a particular loan was “included in bankruptcy.” At that point, creditors stop reporting the payments you continue to make, such as for a mortgage or car payment. This explains why payments don’t show up on credit reports.

Q:  So why is the information on your credit report wrong?

THD Expert:  If the credit bureaus worked for you and me, rather than the creditors, it would probably look more like this: The credit bureaus would report your house payments as long as you are current, but they come off if you get behind. Unfortunately, we don’t make up the rules. 

Q:  How can you make credit bureaus report your payments?

THD Expert:  Start off by requesting a payment history from your lenders (such as the mortgage company or car finance company), and use it to dispute the incorrect entries. Lenders are required by law to give you a payment history once per year if you request it.  Next, take this payment history and use it to dispute the missing payments on the loan with each of the 3 credit reporting agencies (Equifax, Experian  and TransUnion).

Unfortunately, you may have to do this every year as the lender may not start reporting your payments even after you have successfully disputed it.

Now that you know why payments are not showing up after filing for bankruptcy and what you can do about, you can take steps to fix it. 

If you’re need help, or have additional questions give me a call or email me today.

Erik Kaplan
CEO, THD Credit Consulting
erik@thdcreditconsulting.com
Phone: (800) 822-7120

Do you have questions you would like to submit to the THD Credit Experts?  Email your question to: asktheexpert@thdcreditconsulting.com

Coming Soon!

Here are 4 steps to take immediately if you have been a victim of identity theft

In 2015 alone, over 13 million Americans were victim of identity fraud, resulting in damages of more than $15 billion. While identity theft takes many forms, these are some of the most common:

– Credit card fraud

– False applications for new credit

– Fraudulent withdrawals from a bank account

– Fraudulent use of telephone calling cards

– Fraudulent use of medical care

– Social security fraud (for tax and employment fraud)

Here are 4 steps to take immediately if you have been a victim of identity theft:

  • Contact the institution involved – e.g. if your credit card was stolen, call your bank and report fraudulent charges.
  • Place an Initial Fraud Alert with a credit bureau – This is a 90-day warning that cardholders can ask the credit bureaus to place on their credit reports.  Make sure you get a copy of your credit report from each of the three agencies.
  • Submit an Identity Theft Affidavit with the Federal Trade Commission (FTC) to create an Identity Theft Report. This report gives you important rights that can help you restore your financial health.
  • File a report police report – You should also report identity theft to the police. When filing the police report, bring a copy of your FTC report, a government-issued photo ID, proof of your address (such as a utility bill), and any proof you may have of the theft (credit card statements, bank statements, bills, etc).

Clearing the wreckage of identity theft can be a complex process.  If this happens to you, I am here to help stop the theft and minimize the damage.

Until next month,

Erik Kaplan

Coming Soon!