As an Altamonte Springs bankruptcy attorney, not a month goes by that I have filed a bankruptcy and the client sends me a page from their credit report showing that “so and so is still reporting this debt on my credit report!”
My response is generally: don’t worry about it… yet.
99 times out of 100, it will get corrected on its own.
A chapter 7, which most people file, is filed and discharged (completed) in about a total of 3 months… 90 days. The credit reporting bureaus and your creditors barely have time to report during those 90 days. Stop worrying about it. Once your discharge is entered, eventually the creditors will update properly. They almost always get it right.
Misreporting or false reporting is extremely rare.
And why are you worried about your credit during appending bankruptcy? No one is going to lend you credit during this short period of time.
You can improve your credit once the bankruptcy is finished. A car loan or mortgage loan that survives the bankruptcy and new credit cards (yes it is possible to get a new credit card) will quickly improve your credit rating.
As to a chapter 13 bankruptcy, which generally lasts 3-5 years. You are not allowed to obtain credit during the case without permission of the chapter 13 trustee or the court. You are not allowed to have or use credit cards. So worrying about your credit during the case again is a waste of effort.
But my clients say: what if I need a new car during the bankruptcy? Or I want to buy a home.
No problem. The trustee will approve reasonable requests to replace cars, refinance, or purchase homes. The trustee is looking out for your best interests and won’t let you sign an 18% car loan. But if you shop, and are reasonable about what you should purchase, lenders will lend to you during a chapter 13 bankruptcy.
Don’t fret over your credit rating during a bankruptcy. In many cases, it took a long time for you to get into trouble. But getting out of trouble and improving your credit once your bankruptcy is over sometimes takes less time and effort than most people would think.
At Lewis Roberts, PA, I offer a hands-on approach for my clients, putting more than 20 years of experience to work for you. I am an Altamonte Springs Bankruptcy Attorney offering bankruptcy and student loan options for Orlando and Altamonte Springs residents. Contact me to schedule an appointment at my office located at 631 Palm Springs Dr, Altamonte Springs, or call 407-749-0080, and let’s talk about how I can help you.