How Long Does Bankruptcy Stay On Your Credit Report?

Jay Fleischman, New York Bankruptcy Attorney — Wed, 09 Jan 2008 18:02:15 +0000

Credit reporting agencies typically report bankruptcy information for a period of ten (10) years. This, however, does not mean that your credit rating will remain low for that entire time. Credit scoring takes into account the age of derogatory information, and discounts the value of that information the older it is. Therefore, the more time that passes the less important the bankruptcy will be to your credit score.

It is important to review your credit reports at least every six months to ensure that no incorrect information appears on the reports. For people who went through bankruptcy, the most common error involves creditors failing to update their reporting to indicate that the debt was discharged in bankruptcy and has $0 due.

These errors can be addressed a number of different ways, the most reliable one being through the provisions of the Fair Credit Reporting Act. The requirements for a dispute to be processed properly are very strict, but a failure on the part of the creditor to properly update the report once the errors is brought to its attention can result in a claim for a violation of the bankruptcy discharge, Fari Credit Reporting Act, and a variety of state laws.

Seventh Circuit Rules That Credit Reports Must Be Clear And Accurate, Not Merely Accurate

Jay Fleischman, New York Bankruptcy Attorney — Mon, 07 May 2007 20:33:14 +0000

In Gillespie v. Equifax Information Services, L.L.P., No. 06-1952 (May 3, 2007), the Seventh Circuit recently ruled that the Fair Credit Reporting Act’s fundamental requirement that “[e]very consumer reporting agency shall, upon request . . . clearly and accurately disclose to the consumer [a]ll information in the consumer’s file at the time of the request.” 15 U.S.C. § 1681g(a)(1) requires both accuracy and clarity - not merely technical accuracy. In Gillespie, the plaintiffs requested their credit reports, which, among other things, listed the “date of last activity” on certain collection accounts. The problem, however, was that the report could lack clarity as to when delinquency had occurred. Having clarity on this point could be important to the consumer because, under FCRA, a consumer report may not include “accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.” 15 U.S.C. § 1681c(a)(4). Here’s the Seventh Circuit’s key holding:

We conclude that the consumer reporting agency must do more than simply make an accurate disclosure of the information in the consumer’s credit file. The disclosure must be made in a manner sufficient to allow the consumer to compare the disclosed information from the credit file against the consumer’s personal information in order to allow the consumer to determine the accuracy of the information set forth in her credit file. In writing § 1681g(a)(1), Congress requires disclosure that is both “clearly and accurately” made. An accurate disclosure of unclear information defeats the consumer’s ability to review the credit file, eliminating a consumer protection procedure established by Congress under the FCRA.

Source of post can be found here.

New York Bankruptcy Litigation » Fair Credit Reporting Act

How Long Does Bankruptcy Stay On Your Credit Report?

Seventh Circuit Rules That Credit Reports Must Be Clear And Accurate, Not Merely Accurate