Credit score studies are supposed to indicate how a lot cash an individual owes on varied money owed and when or if the borrower is making funds on these money owed.

As a result of chapter makes many kinds of money owed go away fully and forbids collections, no less than briefly, on others, it may be like a tidal wave on the credit score report.  Shoppers usually ask me what their credit score report will say after the case is discharged.  This text solutions the query “what ought to every entry or commerce line on my credit score report say?”  It doesn’t say what your credit score rating must be after submitting.

Every debt that seems on credit score studies has what known as a commerce line.  The commerce line says when the account was opened, what the stability it’s, what sort of mortgage it’s (mortgage, automotive mortgage, bank card, installment mortgage and lots of others), the fee historical past, and what the present standing is.


  • The chapter itself ought to present on the studies.  It is going to be within the “public information” part and it ought to say who your lawyer was and whether or not it was discharged or dismissed.  Discharged signifies that it was profitable and that you simply now not owe the money owed.  Dismissed signifies that the chapter didn’t end and the money owed have come again.  Here’s a pattern under.
  • The Commerce Strains for bank cards and loans with out collateral ought to have the fee historical past cease, and the stability ought to say $0, and the standing ought to say “discharged in chapter.”  It would keep like this on the report for six years from the time it was discharged.  Consider it as saying that this was a debt, however not anymore.  The fee historical past shouldn’t have any new entries for nonpayment or late fee after the submitting date.  Right here is an instance from Capital One.
  • What about Pupil loans?  Pupil loans are not often discharged in chapter, so the credit score studies ought to nonetheless present them as paid and present.  In the event that they weren’t getting paid, then they might nonetheless present late funds.  Beneath is an instance of pupil loans after chapter.  Right here is an instance from Navient.  This pupil mortgage helped rebuild credit score after the chapter submitting.
  • What about automotive loans and mortgages?  Loans with collateral like automotive loans and mortgages solely seem on the credit score report if borrower signed a reaffirmation settlement in the course of the chapter and the lender then filed it with the courtroom.  If there was not a reaffirmation settlement, then the borrower can proceed to make funds on the mortgage and maintain the collateral, however that fee historical past gained’t seem on the credit score report.  Reaffirmation is complicated!  To study extra about it, learn this article.  If the automotive mortgage or mortgage shouldn’t be reaffirmed, then the credit score report ought to appear like this, EVEN IF the borrower nonetheless is paying or paid it off.
  • If the automotive mortgage or mortgage is reaffirmed, then it ought to resume the funds each month, besides the standing defined ought to say “reaffirmed.”  Lenders usually neglect to up to date credit score reporting and inform the credit score bureaus that funds are getting made on a reaffirmed mortgage.  Should you reaffirmed and the funds aren’t exhibiting up in your credit score studies, then it’s best to speak with a lawyer about disputing!

Does all of this appear sophisticated?  Walker & Walker does free credit score report evaluations and disputing for all of our chapter purchasers.  We double verify after submitting to be sure that the report is exhibiting precisely what it ought to so as to construct credit score shortly.  Typically we even win settlements for our purchasers when the credit score bureaus refuse to repair their errors.