Search Site
Menu

Will Debts Be Removed from Your Credit Report After Bankruptcy?

A recent decision by Bank of America and JP Morgan will provide some additional relief to people who have filed for bankruptcy across the United States. The two companies finally reached an agreement to update the credit reports of borrowers within the next several months to show they have settled their debts.

This is a huge development for borrowers whose credit reports have had some major black marks because of their debt history. A credit report marred by debt could prevent a person from getting a job or a new loan.

Complaints from debtors

The two banks, along with Synchrony Financial and CitiGroup, are the targets of lawsuits accusing them of purposefully blowing off bankruptcy discharges to get more money. The lawsuits also accuse these large banks of essentially holding the credit reports of borrowers hostage, as they had allegedly refused to fix mistakes on the reports unless people paid them money for debts they did not even owe. Lawyers are conducting some in-depth investigations to determine whether banks are purposefully disobeying federal bankruptcy laws through these practices.

The banks claim they have been compliant with all federal laws and that they are always accurate in their reports of discharged debts to credit agencies. The decision to update borrower credit reports came without any admission of wrongdoing. The banks have not provided any comments on the issue.

Now that these large banks have decided to stop holding credit reports hostage, smaller lenders can be expected to follow suit if they had not already made this decision themselves. This means that if you have filed or will file for bankruptcy, you may not face as many potential headaches due to inaccurate reports of debt on your credit report.

For more information on these developments, contact the skilled Georgia bankruptcy attorneys at Jeff Field & Associates online or at 404-381-1278.

 


Related Posts:


 

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    I have done business in the past with Jeff Field and Assoc. and highly recommend them to my family, friends and colleagues. I worked closely with Casey and Chris whom made the stressful process so much easier. I was able to rectify my issue in less t...

    Read more

    Hema Juman

  • lawyers
    5.0/5.0

    I chose Jeff Fields and Associates because of the positive reviews I read. My experience with them was very nice. Everyone I had the pleasure of working with was very professional and knowledgeable. Ms. Mai and Chase Butler were very quick too respon...

    Read more

    Client

  • lawyers
    5.0/5.0

    One of the best groups of people I’ve ever worked with. Fantastic company with employees who actually care about your personal experience during an awkward time. I hardly write reviews but wanted to let others know where to go if they happen to eve...

    Read more

    Client

  • lawyers
    5.0/5.0

    Working with Jeff Field & Associates was a pleasure. My attorney and case manager were awesome. They made this journey as smooth as possible and overall just very professional. I will recommend their services to anyone who is seeking help in gettin...

    Read more

    Client

  • google
    5.0/5.0

    This was by far a seem less process. Everyone was extremely helpful and a joy to work with. They answered all of my questions and followed up quickly when needed. Needless to say, I would definitely recommend their services to all of my friends and f...

    Read more

    Jason Barnes

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form