When you file bankruptcy, you will list all of your assets and debts, including assets that you are wanting to keep, like vehicles and mortgages. Although you list the assets and the creditors, you can keep paying on the debts, if you want to keep the property they are secured to.
When a bankruptcy case is filed, all creditors will stop reporting on your credit reports, this is due to the bankruptcy automatic stay. The automatic stay is the protection you receive after you file bankruptcy, to stop creditor collection efforts. Even though you may want to keep your home and vehicles and have been making payments, those payments will no longer report on your credit reports. The opposite is true as well though, say you file and you don’t want to keep your vehicle or other secured asset and you stop making payments, those missed payments should not report on your credit either.
When you have received your bankruptcy discharge, you can attempt to see if the credit reporting bureaus will retroactively report your on-time full payments. To do this, you would need to file a dispute, showing each of your payments were made on-time. This does not always work and if it does, you typically will have to do it each year.
At LifeBack Law Firm we have a 90 day free credit repair program after you receive your bankruptcy discharge. During that program we can provide you more information on the above and even provide you a form for a dispute, if you want that try it.
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If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
