My Bankruptcy Is Over And My Mortgage Company Stopped Reporting My Payments to the Credit Bureaus
By Pamela Stewart, Attorney at Law on Apr 18, 2007 in General Bankruptcy Information, Life After Bankruptcy
Bankruptcy requires you to list all of the creditors that you owe money to on the date of filing - including the ones you want to keep like your home or car. In most jurisdictions, the mortgage company does not require the you (the debtor) to reaffirm your mortgage debt - only that you keep making your mortgage payments. The problem arises some time later when you want to refinance your home or buy another home. That is when you discover the mortgage company stopped reporting your payments to the credit bureau even though you were paying them on time.
Why does this happen? Once you receive your bankruptcy discharge, your creditors are forbidden to attempt to collect any of your debts except the ones that survive your bankruptcy. If you did not sign a reaffirmation agreement with your mortgage company, your home loan was discharged along with your other debts. If your mortgage company reports that you owe a balance after your bankruptcy discharge, the lender would be in violation of the bankruptcy discharge order and the Fair Credit Reporting Act. The mortgage lender does not want to be sued for violating the order and/or Act. Unfortunately, you cannot force the mortgage company to report your payments to the credit reporting bureaus.
(
If you liked that post, then try these...
Bush Subprime Mortgage Plan - Devil Is in the Details! by Jill Michaux, Kansas Bankruptcy Attorney
Chapter 13, Kagenveama, And Great Chapter 13 Plans. by Michael G. Doan, San Diego Bankruptcy Attorney
What is considered a homestead in Texas? by Pamela Stewart, Attorney at Law
You must be logged in to post a comment.