The Burlington Free Press reports a drop of 76% in bankruptcy filings since the change in the US Bankruptcy Code that took effect in October 2005. But the writer of the article makes the point that this does not mean people are not in a bad financial situation - just that they are not seeking the protection of the bankruptcy laws at the same rate as before.
“It’s an appalling law and I’d like you to quote me on that,” Taylor said. “I think the law’s unfair and I think these are difficult times.”
The article conveys the fact that the laws have changed, but that the primary impact has been to increase costs and scare people away from the court system. These changes create “an illusion that fewer Vermonters are struggling financially,” according to the article.
Click here to read the article in full.
In this article on bankrate.com, attorney Justin Harelik answers the question of how to remove an old bankruptcy filing from a credit report.
The credit reporting agencies can usually report your bankruptcy for ten years. At that point, the information is considered outdated and can be removed.
He proposes four simple steps to making sure that the record of a bankruptcy is removed from your credit report. They are:
Step 1: Pull your credit report. This will ensure that you are using the correct account numbers.
Step 2: Make copies. Photocopy your discharge notification, the list of accounts from your original bankruptcy petition, your driver’s license, Social Security card and a piece of mail (such as a bill from a utility) that verifies your address.
Step 3: Send notifications. Send letters to all three agencies: Experian, TransUnion and Equifax. Keep the letters short. State that you filed 10 years ago and therefore all record of the bankruptcy must be removed. Include the copies you made in Step 2. Remember, never send original documentation. It’s the only real insurance you have.
Step 4: Wait patiently. Wait at least one month before taking any action that would make someone look at your credit report. Once you’ve completed these steps, the bureaus will update your credit report within 30 days. Then, you’re free and clear.
It’s all great advice, and you should follow it. But bear in mind that when you send your letter to the credit reporting agencies, that letter should be sent certified mail, return receipt requested. This way you will be able to verify that you sent the dispute in case it is lost by the agencies.
