Many individuals that receive a bankruptcy discharge are still haunted by the debts that the bankruptcy has discharged. These still appear on the credit reports and can have many negative effects on the individual. A lot of people who are making a new financial start find it difficult to find the type of employment they want, because of the discharged debts still appearing on their credit reports.
Two major banks have made the decision to have their borrower’s credit adjusted on their credit reports by removing these debts that have been discharged through a Dallas bankruptcy. The Bank of America and JPMorgan Chase will see that this takes place within a three month period following the bankruptcy.
This is a big step in the right direction in helping those who have gone bankrupt to truly take advantage of what the purpose of bankruptcy serves. This is meant to help individuals who have been swallowed up in debt to get a fresh financial start. Up until now this has not been fully effective because of the discharged debts still affecting their financial status via their credit reports.
The trigger for this type of action on behalf of these two Banks was no doubt the pending lawsuits against them as well as against Citigroup and Synchrony Financial. These lawsuits stem around allegations of these banks ignoring bankruptcy discharges. The Banks have responded to the allegations indicating that they are compliant with the Bankruptcy laws by accurately reporting discharged debts to the credit agencies.
According to the law Banks are required to see that the credit reports are updated regarding the borrower that has the discharged debt. The reports are supposed to reflect that the debt is no longer owed. Any notations such as “ charged off” or “past due” must be removed.
This new and positive action being taken by the Bank of America and JPMorgan Chase is being indicated as being able to help a great deal of people. Many of these people cannot find jobs, or may even have lost their jobs because of the current method of the discharged debts remaining on their credit reports.
There is also a possibility that Citigroup will follow through with similar actions.
This credit report situation has up until made it so some people even consider trying to pay the debts that have discharged because of the serious negative effects it is having on their credit rating.