How to Remove Discharged Debt from my Credit Report
Debts can adversely hurt your credit score. Depending on the type of delinquency, the debt mark can hurt your credit score for up to ten years. Hurting your credit score will greatly affect your borrowing rate, as most lenders in the United States check the report before approving your loan or mortgage. However, after filing a bankruptcy case, the court can rule for canceling your debt due to bankruptcy. This ruling provides relief to most debtors, as the lenders don’t have any legal obligation to collect it from them.
Nevertheless, even after the court discharges your debts, you may still find the debt still overstaying on your report. When most individuals get to this point, the most common question is how to remove discharged debt from my credit report. This article provides the best guideline on how to remove these debts.
STEP 1. VERIFY THE DATE OF DISCHARGING THE DEBT
Once you notice these debts still on your reports, it’ll be important to get the right age of the debt. The reason is that the credit reporting companies might not have the updates or right dates on the ruling date. You can use the court ruling or judgments to determine the date when the courts discharged it. If you notice some issues or errors on the dates, you can use the documents to dispute the error.
STEP 2. CHECK FOR YOUR CREDIT INFORMATION FROM ALL THE THREE CREDIT REPORT
In the United States, three consumer reporting agencies provide information on your credit reports. Therefore, it’s necessary to check for the reports from Experian, Equifax, and Transunion because these reporting agencies offer different information. You can easily get them free at AnnualCreditReport.com to review the current reporting of your loan status. If there are some errors, for example, one of the agencies didn’t update the discharging of the debt, contact them and raise the issue.
STEP 3. CONTACT THE CREDIT BUREAUS
If the bureaus take long to take off the debt from your report, it’ll be necessary to contact them by writing them a letter. The United States’ Financial Credit Reporting Act states that a credit bureau should delete or correct any credit reports that are incomplete or incorrect within 30 days. If you realize the bureaus violated your rights, you can file a lawsuit or complaint to the state’s Consumer Financial Protection Bureau. When filing the case, ensure you have enough evidence to help you make the case very strong and ensure that they realize the violation of your right and correct it.
It’ll be appropriate to provide court copies during the case showing all the procedures and dates. The dates include when your account becomes delinquent and when the courts discharged your debt due to bankruptcy. After arguing the case well, the consumer financial protection bureau will instruct the agencies to remove it.
STEP 4. SEND THE COURT’S LETTER TO THE REPORTING CREDITOR
It’ll be important to draft a letter and send it to the creditor reporting your debt. You can reframe the copies of the letter you send to the bureau and attach copies of your documentation and evidence. While writing this letter, experts advise you to avoid statements that can restart its clock or the lawsuit. After sending the letter and documentation, the creditor will have a maximum of 30 days to investigate your claims.
If the letter and documentation provide sufficient evidence that the courts discharged your loans for valid reasons, you can have the creditors removing them from your report. It’s usually better to deal directly with the creditor, as this will make the process of clearing your discharged debt from the report easier. Most people prefer to work with the larger collection agencies to help contact the original creditors.
STEP 5. CONTACT THE FINANCIAL REGULATORS
If you have contacted the creditor and companies but in vain, the first recourse should be contacting the regulators. For the regulators to quickly help you solve your problem, you must prove that you’ve tried contacting the company but in vain. It happens mostly if the collector is a financial firm like banks because most have federal regulators.
You should submit copies of the returns receipts, the court case ruling, and all the copies of your corresponding. Alternatively, you can make it easy by printing the complaint form, fill it out and clip it with your documents before sending it in. It’s an important step to help get a straight record of your credit reports as these regulators help provide oversight and support. Significantly, it’d help if you took this as the last step after the company or bureaus failed to remove the discharged debt.
STEP 6. SEEK ADVICE FROM A LAW ATTORNEY
Attorneys understand most law issues; thus, they may be the perfect individuals to offer advice and guideline on this matter. How to remove discharged debt from my credit report is one area where well-trained and certified attorneys will help you. However, it’s essential to understand that consulting doesn’t mean you’ll pursue a lawsuit to seek its removal from your report.
The lawyer will provide appropriate guidance to help you push the creditor to review the records. Nonetheless, if the collector or creditor won’t pull it off, the lawyer can advise on the best way to file the lawsuit. The lawyer can help you draft the correct letter for your lawsuit and help you through the lawsuit while providing more advice until you get your discharged loan off the report.
After the court rules on canceling or discharging your debt for multiple valid reasons, such as bankruptcy, the creditors should automatically remove it from your report. However, it rarely happens in most cases, thus leaving most individuals wondering how to remove discharged debt from my credit report.
It would be crucial to check the information on your report and track carefully if the creditors removed the discharged debts. If not, you use the above ways of removing it and prevent its negative effects from hurting your score and reports. Remember removing a single debt from your account will raise your credit score by 50 or more points.