Credit Reports and Bankruptcy?

by Carmen Dellutri, Esq.

August 15, 2007

As a Bankruptcy Attorney, I have an obligation to my client to help them achieve a Fresh Start by obtaining a Discharge in Bankruptcy.  The Bankruptcy Discharge is only as good as the information contained in the Bankruptcy Petition and Schedules.  Accordingly, we pull credit reports for each and every bankruptcy client of the firm.  I watch my clients faces when we review the credit reports, and I can tell that many trade-lines on the report are clearly inaccurate. 

Yesterday, my client had a trade line stating that a debt was owed since 1988.  If this information was true, it would need to be removed, but more importantly, the client was horrified because they were only 15 years old at the time and did not have a repossession.  Each day, the inaccurate reporting seems to get worse, I cannot remember the last time that a client’s credit report was accurate.  After thinking about this for a few minutes you realize that this inaccurate trade-line may have cost this person a higher interest rate on the mortgage and car loan, thereby costing them tens of thousands or maybe hundreds of thousands of dollars.
Additionally, I heard a statistic on the radio that said over 80% of credit reports have issues.  Not too long ago, it was said that 50% of people had credit report issues.  I am starting to believe that the number may very well be 80% or higher.  I was shocked when I took on my own credit report fight.  It wasn’t as difficult as you may think.  You need to be diligent and detail oriented on this task, but the results can pay dividends.

After the bankruptcy process has been completed, you will need to review your credit reports to make sure they are correct, and then you will need to monitor the credit reports at least once a year to keep on top of the creditors.  Many bankruptcy attorneys and consumer advocates help their clients with the problem creditors.  I believe that any creditors that fail to abide by the laws are violating the discharge injunction.

There are many posts on this site about how to remove negative information on your credit reports.  Please do it now, do it today.

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Carmen Dellutri is a proud member of the Florida Bar, and he is a Board Certified Consumer Bankruptcy Attorney, Certified by the American Board of Certification. He practices in the areas of Consumer Bankruptcy and Plaintiff's Personal Injury. He is the principal attorney at The Dellutri Law Group, P.A. The firm supports many charitable and civic causes by donating time and much needed capital to our community. Mr. Dellutri and the other attorneys in the firm routinely speak to students of all ages about various legal and societal issues.

Last modified: August 15, 2007