Civil Judgments After Bankruptcy - Sneaky Creditors and Important Information You Should Know


With the new bankruptcy laws that went into effect in 2005, a lot of people may not be aware of several things that could impact them in the future. And if you filed for bankruptcy prior to or during 2005, this information is just as important because this particular issue I found out about this past year regarding a bankruptcy of someone I know that was discharged during 2005.

When you file for bankruptcy and it is discharged, there is documentation that is given to the creditors that were listed in the bankruptcy that the debt has been discharged and they have to show it as such on your credit report.

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What a lot of people do not know, is that the creditor who originally issued the judgment are also supposed to send a release of judgment to the county courthouse showing that the judgment has been released. This is vital, because if they do not send this information to the courthouse, it will cause you problems with being able to obtain credit, loans, and mortgages.

But it gets even worse, and I will give you a real-life example of what happened to someone I know.

This couple filed bankruptcy in 2005 and their debt was discharged. However, one of the creditors never sent the documentation to the courthouse showing a release of judgment. Now, 4 years later, they want to move to a new area so they decided to find out about getting a mortgage and what they would qualify for.

When they went to the bank to find out what they would be eligible for, a notice came up when the lender pulled their credit history. The notice showed that the original judgment was still sitting open on the courthouse records. The creditor did not do their part to release the judgment.

Now they are back trying to get in touch with an attorney to get this fixed and any kind of move or financing is impossible because the creditor did not do what they are required to do. On the credit report, the bankruptcy shows up with all the information and the dates that the bankruptcy was final. However, in the judgment column, there is a "date of release" field that has to show when the creditor released the judgment. This date should coincide with what is at the county courthouse.

Then contact the county that your bankruptcy was filed in to find out how to determine if the judgments have been released. You will need the original case numbers. And some counties will have the information online, so ask if they have a way for you to access it yourself. If not, they can tell you who to contact locally.

The point to all of this is one thing....KNOW what is on your credit report. Learn it, and understand it. Don't assume that if you filed bankruptcy that the attorney even did their job correctly. It is up to us as consumers to be responsible and check our own credit reports.


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