We have talked about many issues surrounding the impact of filing Chapter 7 Bankruptcy on your credit reports, credit score, and credit profile. But, in this blog I am going to write about what actually happens to your credit reports when you file Chapter 7 bankruptcy? Like, when you actually file a Chapter 7 Bankruptcy what do your credit reports say? What do they say when the bankruptcy is done? What happens if the credit reports are incorrect?
Immediately upon filing a Chapter 7 Bankruptcy, your credit reports will all state Chapter 7 Bankruptcy. Now, when you file Chapter 7 Bankruptcy, you are technically still liable on the debt until you receive your Chapter 7 discharge. So, credit reports will list all your debt plus Chapter 7 Bankruptcy.
Upon discharge, your credit reports will say Chapter 7 Bankruptcy but should not have any of your debt listed on the bankruptcy showing on the reports. That is because your liability on the debt is gone upon receiving the Chapter 7 discharge. If the credit reports show, after discharge, debts that were discharged on the Chapter 7 bankruptcy there is a way to remove that negative information by notifying the credit reporting agency of the mistake listed on your report, proof of why it is wrong (i.e. it was listed and discharged in your Chapter 7 Bankruptcy), and the credit agency has 30 days to remove that information.
So, when it is all said and done, Chapter 7 bankruptcy should be the only thing reporting on your credit reports. The debt discharged in the bankruptcy should be gone, which is often why the credit score of the person who filed goes up!
When the time is right, or when you are ready, reach out to a Minnesota bankruptcy law firm known for having the BEST CUSTOMER SERVICE of any Minnesota bankruptcy law firm at www.kainscott.com.