Many people who have been drowning in debt have been seduced by their bankruptcy attorney to get a “fresh start” by filing for Chapter 7 or 13. The promises of discharging debts who have been hounding consumers for years has had great appeal, but is it effective? Not always.
Your credit report, although damaged with bankruptcy notation in the public reports section is not harming your credit score nearly as much as your creditors who are not reporting the discharge of your debts. Your credit report is holding you back at the starting line for your fresh start. Here are some of the things that we have seen that have held people back from getting a fresh start in bankruptcy. If you have filed for bankruptcy in the preceding 3 years, you really ought to review your credit reports or at least, let us do so for free.
This is a huge problem. Did you know that 35% of your credit score is made up of timely payments? Each time you timely make a payment to a credit, such as a mortgage lender, your credit score goes up a bit. If your mortgage balance has been reduced to zero, then there is nothing for your timely made payments to get credited to and you are not given the benefit of each timely made mortgage payment. This happens a lot.
If you have filed for Chapter 13 bankruptcy and have had a plan confirmed by the court, you have a new contract with your creditors. Chances are excellent that many of your creditors must now accept a lower monthly payment and interest rate from you and consider your account as current with each such payment. Some creditors fail to update the tradeline to report the new monthly payment due and hence, report you late, month after month.
Once your creditors have been discharged in bankruptcy, you no longer owe them anything. You are neither late, nor was your account “charged off” because the balance was discharged in bankruptcy. A “charge off” is merely an accounting notation meaning that the creditor could not collect the debt and had to take it off of its books. However, with a charge off, a credit can still pursue you for the debt. If the debt was included in bankruptcy, the creditor no longer has any such right to pursue you to collect.
If you have filed for Chapter 13, then your bankruptcy cannot be reported for longer than 7 years from the date that you filed. If you have filed for Chapter 7, then it should be reported for longer than 10 years. While the negative effect of a bankruptcy on your credit score lessens over time, it’s never totally extinguished if it is still reported on your credit report.
Many times, debt collectors are paid on commission based on the amount of money that they collect. Sometimes, they may refuse to report a collection item that they were collecting before you filed for bankruptcy as included or discharged in bankruptcy. This is illegal and harms your credit score
Your best bet is to give us your credit reports and let us review them for you for free. While credit repair companies charge “audit fees” and such for this service, we charge you nothing. We make our money by finding errors and mistakes on your credit reports and then suing to get them removed. If we are successful, we collect our fees and costs from the money that we collect on your behalf. Nothing ever comes out of your pocket to pay our fees.
Contact us today at Credit Repair Lawyers of America for more information about how we can review your credit reports for errors and mistakes at no out-of-pocket charge to you. Contact me, Attorney Carl Schwartz at gary@crlam.com or call me at 855-956-2089 for a free, no obligation consultation. Let us look at your credit reports and truly get you the fresh start that you deserve.
3355 Lenox Road #750
Atlanta, GA, 30326
Phone: 404-591-6680
Toll Free: 855-956-2089
Website: https://creditrepairlawyersam.com/
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