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Credit card debt reporting following bankruptcy

Once a Michigan consumer has emerged from the process of a personal bankruptcy, he or she is often reinvigorated and ready to begin building toward a financially secure future. A part of that process involves embarking on an aggressive credit repair strategy once high levels of credit card debt have been eliminated. While it is undeniable that one's credit score will take an initial hit following a bankruptcy discharge, it is also true that credit repair is not only possible, but can take far less time than many consumers imagine.

The first step toward post-bankruptcy credit repair involves obtaining a copy of one's credit report from all three credit bureaus. Old debts that were discharged through the bankruptcy process should be shown as having gone through bankruptcy and there should be no balance shown as due. It may take some time before the accounts come off the report completely, but having them appear without a balance will help a consumer's score begin to rise.

In years past, consumers often experienced trouble in having their accounts correctly listed by the nation's three credit reporting bureaus. However, a class action lawsuit was brought in the matter. Within the 2008 settlement of that case, the three bureaus agreed to make improvements in the way that such accounts are reported.

By ensuring that discharged accounts are properly reflected within one's credit reports, consumers can begin rebuilding their credit scores through responsible use of new lines of credit and management of credit card debt. Within a short time, scores will begin to rise, and savvy Michigan consumers can pursue more aggressive forms of credit repair. That can lead to a great foundation for a stable financial future.

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

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