Cancelled Debts Remain on Credit Reports

One of the key purposes of bankruptcy is a fresh start. That is, all of your bills are wiped out once and for all. The lenders and credit reporting agencies are required to note your bankruptcy discharge (which essentially acts like a restraining order against collection) on your credit report. The New York Times recently reported that many of the large lenders are violating federal bankruptcy law by ignoring the injunction. When then happens, someone who wants their fresh start is unable to complete the loan process because the old debt shows up on credit reports. This unlawful practice has affected several Checkett & Pauly clients. However, we are always there to push back and force the lender or credit reporting agency to comply with the bankruptcy discharge and correct the credit report or face the consequences. You must be sure to stand up for yourself and ask for our help if a creditor breaks the law.