When you file for bankruptcy and it is discharged, creditors are provided with documentation indicating that the debt has been discharged, and they are required to reflect this on your credit report.
Unbeknownst to many, the creditor who initially issued the judgment must also submit a release of judgment to the county courthouse indicating that the judgment has been released. This is crucial, because if this information is not sent to the courthouse, you will have trouble obtaining credit, loans, and mortgages.
But it gets even worse, as I will demonstrate with a real-world example involving a person I know.
In 2005, this couple filed for bankruptcy, and their debts were discharged. However, one of the creditors never sent the courthouse the paperwork indicating the release of the judgment. Now, four years later, they want to relocate to a new area, so they decided to research mortgages and their eligibility.
When they went to the bank to find out what they were eligible for, an alert popped up after the lender ran their credit report. The notification indicated that the original judgment was still pending in the courthouse's records. The creditor did not fulfill their responsibility to vacate the judgment.
Now they are attempting to contact an attorney to rectify the situation, and any type of relocation or financing is unattainable because the creditor failed to comply with the law. On the credit report, the bankruptcy is detailed, including the dates the bankruptcy was finalized. However, the ""date of release"" field in the judgment column must indicate when the creditor released the judgment. This date should match what is displayed at the county courthouse.
Then, contact the county in which you filed for bankruptcy to learn how to determine if the judgments have been released. Original container numbers are required. In addition, some counties will have the information available online; inquire as to whether you can access it independently. If not, they can provide local contact information.
All of this leads to one conclusion: KNOW what is on your credit report. Learn it, and understand it. Do not assume that if you filed for bankruptcy, the attorney performed his or her job properly. It is our responsibility as consumers to examine our own credit reports.
" - https://www.affordablecebu.com/
