Unfortunately, some creditors are trying to get around the bankruptcy discharge by keeping discharged debts listed on credit reports after bankruptcy. In some cases, old discharged debts haunt people for years after the accounts were declared discharged and uncollectable. The problem is particularly pronounced when the original creditor sells its delinquent accounts to third party debt purchasing and collection financial firms.
The practical effect has been to force people into the situation where they must pay off discharged debts to clear their credit reports. These negative items affect people’s ability to obtain future credit, rent homes and even obtain employment.
Recently, the New York Times reported on these abusive creditor practices. These practices by certain creditors has begun to attract the attention of a few bankruptcy judges and United States Trustee’s Offices. Creditors have routinely failed to update credit reports to remove certain account notations after the entry of a debtor’s bankruptcy discharge. These cases are just begining to make their way through the federal court system but it is abundantly clear that many sellers and buyers of delinquent accounts are trading on debts that already have been declared discharged in bankruptcy.
If you would like to discuss your financial situation with an experienced bankruptcy lawyer, the bankruptcy attorneys at Amori & Associates will review your family's circumstances. Experienced bankruptcy lawyers Scott M. Amori and Victoria A. Strunk will review your particular circumstances at a no obligation consultation. Call Amori & Associates at (570) 421-1406 for an appointment.