Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

Credit bureaus improve procedures for reporting discharged debts

When a bankruptcy is completed, a consumer's credit report should be updated to show that the person is no longer responsible for paying debts that were discharged. For a long time, the major credit bureaus were not as careful about updating reports as they should have been. However, the bureaus have recently been more consistent about updating credit reports, which means that this may be a good time for Wisconsin residents struggling with debt to seek the relief that bankruptcy can afford.

The recent shift is attributed to a class-action lawsuit filed against the bureaus. Plaintiffs alleged that the credit bureaus showed consumers as delinquent in payments on debts that had been discharged. There were some allegations that the bureaus did not investigate even after these problems were reported. Improvement procedures were included as a partial settlement reached in 2008.

A Chapter 7 bankruptcy affects a person's credit report for 10 years. The bulk of the negative impact occurs in the first couple of years, but if a report shows late payments in addition to the bankruptcy, the credit score may be lower than it should be. Therefore, it is important to have discharged debts updated to show no outstanding balance.

Because a person's credit score affects loan approvals and interest rates, it is imperative that this information be accurate. Mistakes in credit reporting could cost consumers hundreds of dollars in increased interest payments. People in Wisconsin who find mistakes on their credit reports may benefit from speaking with bankruptcy attorneys who might be able to contest the entries and help establish a plan for repairing damaged credit.

Source: The New York Times, "Credit Reports More Accurately Reflect Debts Discharged in Bankruptcy", ANN CARRNS, April 30, 2013

Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.