How To Fix Your Credit Report After Bankrutpcy

UPDATE (7/23/19) - Credit Monitoring Service

I recently received an email from a credit monitoring service that caused me to realize this is an area that I have not addressed.  So, I thought I would briefly address this industry.

There are numerous agencies vying for you to subscribe with their credit monitoring services, with slightly different things offered from different companies.  Usually, the monitoring is for a monthly fee that spans from just under $10.00 to around $30.00 per month, which can certainly add up over time.  It seems everyone from credit card companies and insurance companies to antivirus providers are offering credit monitoring.  I have not researched credit monitoring services as to what they have to offer for people emerging from bankruptcy, so this is an area you may want research.  I am under the impression the services offer monitoring for ID and credit card information theft, rather than checking on the accuracy of amounts being reported to credit reporting agencies.

So, is ID theft a problem.  Well, for those of us that have had our ID stolen, we view it as a huge problem; however, I did not really view it as a problem before it became a problem.  How did I find out my ID was stolen?  I was served with a law suit.  Yes, that is correct...SURPRISE!  Of course, I was able to handle it without a problem, but it did temporarily effect my credit score because of inaccurate credit reporting, which was later resolved.  However, if the first time you find out about your identity being stolen is with being served a law suit you know nothing about, the first thing you are going to do is hire an attorney...just a thought.

A new company on the block is TrueCredit.com from which I recently received an email.  They sent me the blog link https://www.truecredit.com/is-credit-monitoring-worth-it/  and, at their request, are providing a link to an article regarding credit monitoring.  Please note: I do NOT endorse nor denounce this company.  I am simply providing the link for educational purposes; that is, so you can see what information is being presented by a credit monitoring company.
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The law that controls everything as it relates to credit reports and credit reporting is titled the Fair Credit Reporting Act (FCRA).

Usually, the way this will come to our attention is that one of our clients is now ready to restart his or her credit life after a bankruptcy is finished.  What we suggest that our clients do, after a bankruptcy discharge has been issued in their respective case, is to follow exactly the steps described below.
The formal dispute process as set forth in the FCRA must be followed exactly or erroneous, false and/or incorrect information can simply be reflected on, and stay on, a credit report forever.

How To Remove Incorrect Credit Report Information

If erroneous and/or incorrect information is showing up on your credit report, it will have  consequences as far-reaching as the ability to obtain credit at favorable rates and may even affect obtaining employment.  The following are the exact steps that need to be taken in order to delete wrong information on credit reports.

1. Get your credit reports. Get them only in writing from annualcreditreport.com.  Use the mail- in form available at that site to obtain the credit reports from all three credit reporting agencies (Equifax, Experian and Trans Union).  The form to get all 3 credit reports is located here.  Attach a copy of your driver’s license and utility or other bill that ties you to the address you want the credit reports mailed to and so you can show that you are who you say you are.  This is the absolute best way to get your free credit reports when you want to dispute erroneous information and it avoids many problems.
2. DO NOT get credit reports directly from the credit reporting agencies (Equifax, Experian and Trans Union).  You may lose important rights and find yourself limited to binding arbitration.
3. Get a complete copy of your bankruptcy petition (if filed after October 15, 2005) and the formal discharge document issued by the Court in your case. That way, you will have a complete listing of all of the debts that were discharged in your bankruptcy and the court document showing that they are no longer legally owed.
4. Once you get the credit reports, review them carefully for any mistakes or incorrect information. Make sure every debt that you listed in your bankruptcy petition shows on the credit report as “0(zero) balance – discharged in bankruptcy.”  That is the only designation that can appear on what is called the trade line for that particular debt.  


5. Debts that are discharged in bankruptcy cannot show anything else such as any balance still owed, in collections, delinquent, charge-off, or any other negative information.  Again, to reiterate, any debt that has been discharged in bankruptcy can only show “0 balance-discharged in bankruptcy.”  If anything else appears on that particular trade line, especially if it is derogatory information, then that violates the requirements of the FCRA.   
6. If there is erroneous information in the trade line for a debt that was discharged in bankruptcy, you will then want to prepare a dispute letter directly to the credit reporting agency that has the wrong information.  DO NOT submit the dispute online!  It is critical that you do the dispute in writing and that you mail it in.  Logically, you would think that you would dispute the erroneous information with the credit furnisher that is providing the wrong information but that will accomplish absolutely nothing.  The FCRA mandates that you must make the dispute directly with the credit reporting agency itself who then will contact the furnisher.  If you do not follow these steps exactly, then you will accomplish nothing and the errors on your credit reports will be entitled to remain there.


7. When you prepare your dispute letter to the credit reporting agencies, you must mail it to them by certified mail, return receipt requested. Keep a copy of the signed and dated letter that you send and also keep the green card you receive back from the post office verifying that the credit reporting agency did receive your dispute letter.
8. Below is what a sample dispute letter should look like where negative information appears in a credit report on the trade line of a discharged debt.  Please follow this sample letter exactly for your best chance at getting the credit reports fixed.

_______________________________________________________________

SAMPLE DISPUTE LETTER – USE THIS AS A GUIDE TO CREATE YOUR OWN DISPUTE LETTER

Your name
Your full mailing address
Your city, state zip code

Date of letter

Complaint Department
Name of Credit Report Agency (Transunion, Equifax, Experian)
Address
City, state, zip code

Dear Sir/Ma’am:

After reviewing my credit report, I am writing to dispute the following information. I have circled the disputed items on my attached report. These include (list item(s) disputed by name of source, such as creditors, and identify type of item, such as credit account, judgment, etc.)

This item(s) is(are) inaccurate because (list exactly why each item is incorrect or incomplete – for instance,   “The debt was included in my bankruptcy and is only allowed to be shown as a 0 balance-discharged in bankruptcy. No other negative information is allowed to be listed on that trade line.”

Supporting documents have been enclosed.
(BE SURE TO INCLUDE AS MUCH SUPPORTING PROOF AS POSSIBLE TO SUPPORT YOUR DISPUTE – THIS IS VERY IMPORTANT!!! In a situation where a debt was discharged in bankruptcy and it still shows negative on the credit report, be sure to include a copy of the page(s) of the credit report that shows the negative information, circle it and explain in paragraph two above what the negative language is that is not allowed.  You may also, make sure to include the copy of the page of the bankruptcy petition that shows the debt itself and a copy of the bankruptcy discharge entered in the bankruptcy case.)  Pursuant to the FCRA (Fair Credit Reporting Act), please forward them to the credit furnishers. If you are not going to forward them, please inform me immediately so that I may do so myself.

Sincerely,

Your name printed AND signed name

Encl. (List by name each document that you are enclosing)

___________________________________________________________________

6. In addition to NOT submitting your disputes online, DO NOT use a PO Box as the mailing address for your disputes. Use ONLY the physical mailing addresses for the credit reporting agencies.  The physical addresses are as follows:

Equifax
1550 Peachtree Street, NW
Atlanta, GA  30309-2468

Experian
701 Experian Parkway
Allen, TX  75013

TransUnion
555 West Adams St
Chicago, IL  60661

7. Make sure to keep a copy of everything you send and receive.  Make sure to keep a copy of the green card you get back from the post office so you can verify that the credit reporting agency received your dispute. THIS IS IMPORTANT.
8. If you want, simply out of frustration, you can also write a separate letter regarding your dispute to the actual credit furnisher. This may help expedite the correction but remember that, under the FCRA law, this WILL HAVE NO EFFECT in correcting erroneous or wrong information on your credit report.  The only way the system operates is by a dispute letter directly to the credit reporting agency, regardless of whom is furnishing incorrect information on you!
9. Once you have submitted a proper dispute, wait up to 45 days for a response. If your credit report is fixed, then you need to do nothing further.
10. If your credit report is not corrected after your first dispute, then try to get credit and see if whomever you are applying for credit denies you or gives you a problem or a higher interest rate because of this incorrect information.  Make sure to keep proof of ALL denials you receive or problems you have getting credit AFTER your initial dispute.  The furnisher of the incorrect information, once it receives the dispute directly from the credit reporting agency, is required under the law to “conduct an investigation” of the dispute and report its findings back to the credit reporting agencies.
11. If the information is not corrected as you think it should be, then do a second round of disputes. That is essentially your initial letter again with all of your supporting enclosures as described above  and you should note on it “2^nd Request – Urgent!” with the new date and explain again what your dispute is and that this is the second time you’re disputing the inaccurate information and that you needed corrected because it is damaging YOU.
12. Once you get the report back from the second round of disputes, if the credit reports are still not fixed, tried to get credit again and keep all proof if you are denied credit or if you have problems again after the second round of disputes.
13. You may have to do disputes another time or two if the credit reporting agencies and the furnisher of the incorrect information will not fix your credit reports.
14. A Bit of Advice.  An effective dispute letter is to pretend that you are trying to explain to a fifth-grader what the problems are with your credit reports and why the information that is being shown is wrong. Explain the problems in great detail.  Send supporting documentation. Make sure that even a fifth-grader would understand why the information on your credit report is not correct.

If Credit Reports Aren’t Corrected

If your credit reports are not corrected to reflect that each debt discharged in bankruptcy is shown as a “0 balance – discharged in bankruptcy” and you are suffering damages in the form of credit denials, job denials, etc., you then have a right to file a law suit against the credit reporting agencies and the credit furnisher.

The law under the FCRA is complicated and illogical in parts. If you need help in correcting your credit report, initially you should contact your bankruptcy or consumer advocate attorney.  Should your attorney not wish to help you, you can ask for a referral.  The bankruptcy laws allow for people to obtain a “fresh start.”  A creditor, debt collector or credit reporting agency is not allowed to continue to punish you after a legal discharge of the debt.  A balance still owing, charge off, delinquency or any other derogatory information is not allowed.

Yaffe of National Gold Exchange Headed To Jail For Fraud

Before the bankruptcy, Yaffe had built National Gold Exchanges into one of America’s leading gold coin dealers. He and his wife, Christel Yaffe, bought a mansion in the exclusive Avila neighborhood. Yaffe held galas at his home to benefit St. Joseph’s Hospital and Hillsborough Community College, witnesses said. But U.S. Department of Justice Trial Attorney Tim Loper used Yaffe’s wealth to make a point: He didn’t have to steal money from the bank. After Hazzan Jody Sever Lever, pastor at Yaffe’s synagogue, testified about the defendant’s virtues, Loper asked if she knew Yaffe owned Porsche and Mercedes automobiles, two boats and two personal watercraft. Loper also said Yaffe had set up a $7 million trust fund for his family in November 2012, well after the bankruptcy. “Those were assets he could have used to pay back creditors,” Loper said. Yaffe is to report to prison on Jan. 8. Once-wealthy coin dealer sentenced for fraud www.tbo.com TAMPA — Mark Yaffe is a great guy, 21 witnesses said in federal court Friday.                   Reply to this email to comment on this post.           This message was sent to dgrange@grangelaw.org

New Revised Forms For Bankruptcy Effective December 1, 2015

 

This is a reminder that revised Official Forms went into effect December 1, 2015.





All filers should use the new revised forms on and after December 1, 2015 for all newly filed cases and any initially filed schedules and statements. For additional information, please consult the forms update web page at http://www.flmb.uscourts.gov/forms/december-form-changes/

According to CNN MONEY,

Zombie debt collection scams are on the rise

What you need to know can be found at http://goo.gl/cu1bdf

SCAM: Con-Artist Possing As Attorneys

I just received the following email from the National Association of Consumer Bankruptcy Attorneys, and I am posting it here in its entirety.





The National Association of Consumer Bankruptcy Attorneys (NACBA) is urging members to remain in communication with present and past clients regarding bankruptcy "con-artists" posing as attorneys.

Over the past few weeks, NACBA has issued a consumer bulletin and been in contact with the courts and media regarding this well orchestrated scam. Warnings have been issued by the Office of the Attorney General in New Hampshire and by Virginia Eastern District bankruptcy clerk William C. Redden. The warning in Virginia has been posted on the websites of both the Eastern and Western District Bankruptcy Courts.
Despite warnings being issued to the general public, incidents continue to be reported and it is likely this fraudulent activity will spread to other states.
Members of the NACBA Legislative Committee will soon approach the Department of Justice to not only request a deeper investigation into how consumer information is being compromised but also recommend steps that can be taken to further protect the identity of those going through the bankruptcy process.
NACBA is requesting all Consumer Bankruptcy Attorneys to warn current and past clients about this scam and to urge these clients not to turn over money to anyone who calls by phone.
Please post the consumer bulletin prepared by NACBA to your law firm website and blog. Also, please send out the warning via email to all current clients.
If any clients report being a target of this scam, please send the basic information to admin@nacba.org. NACBA will compile all info and present to the Department of Justice to further illustrate the need for immediate action.
To see a copy of the consumer bulletin issued by NACBA, please visit: HERE
To see a copy of the consumer bulletin issued by the New Hampshire Attorney General, please visit: HERE
To see a copy of the consumer bulletin issued by the United States Courts, please visit: HERE
To see a copy of the consumer bulletin issued by the Eastern District of Virginia, please visit: HERE

GoFundMe Worthwhile Cause: Need Your Help By November 30, 2015

While my blog may make it look like Bankruptcy work is all I do, that is not the case.  I not only practice in other areas of the law, but am passionate about volunteer work.


One of the projects I am currently helping with involves high school students from approximately 45 high schools in Duval, Nassau, Clay, Baker, and St. Johns Counties.

This event is being headed up by the Rotary Club of South Jacksonville (of which I am a member), in which area high school seniors will have the opportunity to compete for college scholarship dollars by researching, creating and delivering a presentation based on the topic, 

“What can Jacksonville and the First Coast community do to gain recognized greatness nationally and internationally, using in your argument some or all of the following discussion categories: finance, education, medical, transportation and public service.”

These students will be competing for a minimum of $20,000 in scholarship funds.  What happened last year?  Take a look at http://goo.gl/SaOXzD 

Want to see last years speeches?  Click on https://www.youtube.com/watch?v=T-dMWSCDF4g

We are in the process of raising funds for the scholarships sponsorships an crowd funding.  Towards CROWD FUNDING, you can help.  There is currently a giant PUSH to get some small donations (just $10 or $20).  We need your support by not later than Friday, November 6, 2015.  If everyone makes a small donation, it should put us on the map to receive more funds.  So, you can view your donation as having a multiplier effect.  There is no telling what a small amount could end up generating, but I do need your support.

Go to GoFundMe.com/gt3tm8 and sign up to support these kids.

If you are interested in becoming a Sponsor, please contact me so I can keep you updated about news releases, sponsor's events, publicity, etc.

THANKS in advance.

Dinkins Grange

Will Supreme Court Hear Case Of Student Loan From Florida (FCSL)?

A Waukesha man has filed a petition with the U.S. Supreme Court  in hopes of having his student loans written off in bankruptcy court. The case calls into question the different standards used across the country.

Mark Tetzlaff is far from typical when it comes to the severity of his student loan debt. He’s 57, and inching closer to retirement age, yet he still owes a lot of money.

“In terms of the balance, we’re now at about $285,000. It’s accumulating at something close to $950 a month,” Tetzlaff says.

Tetzlaff says nearly half his balance is interest, and he simply can’t afford to pay. “I survive, we survive here, my mother lives with me, we survive solely on her social security,” he says.  

Tetzlaff says there are multiple reasons for why he is so deeply in debt and unable to repay his college loans. He says the majority of them accrued while he was earning a law degree from Florida Coastal School of Law, a for-profit college in Florida, about 10 years ago. Since graduating, he’s taken the bar twice and failed. Along the way he’s dealt with substance abuse, depression and two misdemeanors, including one for threatening a witness.

The most recent numbers show that about 11 percent of student loans are delinquent at least 90 days. But not many owe as much as Waukesha’s Mark Tetzlaff. According to the New York Federal Reserve, less than one percent of borrowers owe $200,000 or more.

Source: http://wuwm.com/post/wisconsin-man-challenges-discharging-student-loans-bankruptcy#stream/0