At the close of a bankruptcy filing, all unsecured and non-exempt debts that were not satisfied by the bankruptcy process will be discharged. That means the debtor no longer has a legal obligation to pay the debts. The bankruptcy is over, finalized, and protection for the debtor is guaranteed by the the determining laws and terms of the discharge.
The whole bankruptcy system was set up so that there is a finalization between the creditors and debtors to end once and for all their financial arrangement. When a US Bankruptcy Court discharges a bankruptcy proceeding, they are in effect saying everything was satisfied and finished. The power of a bankruptcy discharge is very strong.
Yet, bankruptcies are a matter of public record. Credit reporting is also a matter of public record. When a bankruptcy has occurred and been filed publicly, public records vendors obtain the information and sell it to the credit bureaus. The bureaus place the information onto the credit report of the filing debtor. This information is processed and scored on the credit report, usually having a negative impact on a debtor’s credit score.
Bankruptcies can legally stay on your credit report for up to 10 years. Each credit violation that may have contributed to a bankruptcy may also be reported to the same institutions, and each account will have its negative effect on the credit score. These accounts can legally remain on your credit report for up to 7 years unless something happens that changes the situation.
Filing for bankruptcy is one situation that changes the status of credit accounts already reported on credit reports. These facts probably prompted this personal bankruptcy question posted on the internet in 2011 in a bankruptcy discussion: “A bankruptcy cannot be wiped off your credit report until after 10 years, but can the accounts discharged in a bankruptcy be taken off your credit report before the 10 years is up?”
A credit bureau will normally notate each affected credit account in some way to indicate the account was discharged in bankruptcy. Unless you voluntarily petition the credit bureau to remove the accounts or force them through some type of litigation, they are not required to remove the information as noted until 7 years has passed.
Credit bureaus do make mistakes and sometimes do not always receive or record the information provided by a discharge in bankruptcy. When this happens, it is your responsibility to bring the error to the bureau’s attention. That is why many think it is a good idea to monitor your credit reports. Credit reports play a very important role today in our ability to financially function in the United States.
Bankruptcy laws can be complicated, and common sense indicates you might need a bankruptcy lawyer in order to help you understand how these complex laws may apply in your particular situation.
If you live in or around the metropolitan area of Toledo, Ohio, contact us here today at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.
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