My Bankruptcy Is Over And My Mortgage Company Stopped Reporting My Payments to the Credit Bureaus

18 Apr My Bankruptcy Is Over And My Mortgage Company Stopped Reporting My Payments to the Credit Bureaus

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.


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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
  • Mary Scott
    Posted at 08:56h, 15 June

    So basically even if you pay on time for several years, you get ZERO credit for paying a mortgage? Like you NEVER ever had a mortgage, OMG! That can’t be any more wrong if they tried. I can understand that they can’t say you have a balance owed but they can still report that you are paying on it. I don’t understand why it has to be this hard. It’s ridiculous.
    I was told (by our lawyer) that if we reaffirmed our loan, if we were so much as one day late that the mortgage company could toss us out and take our house, therefore we opted not to reaffirm. Now we’re trying to refinance (7 yrs later), have good credit of 680 but…since mortgage company isn’t reporting the credit union we are trying to refinance with is at a stand still. It’s not right by any means…

    • Brett Weiss, Maryland Bankruptcy Attorney
      Posted at 16:26h, 17 June

      It works both ways. While not having current payments reported is the down side of getting personal liability for the loan discharged, it also means that late payments will not jeopardize your credit.