When you successfully exit bankruptcy protection, you receive a full discharge of your debts. This means that creditors can no longer come after you for those debts. Likewise, these debts should be fully cleared from your credit report because they are no longer outstanding. As far as the courts are concerned, they've been settled.
Unfortunately, that's not how it always works. In fact, over the years, millions of people who filed for bankruptcy continued to see “charge-off” or “120 days late” appear on their credit reports from the major credit score companies.
On Aug. 31, millions of affected Americans were sent a notice that they may soon receive their share of the settlement.
The three main credit bureaus offered a $45 million settlement. However, that works out to about $1 per person affected.
Lawyers involved have filed a motion that aims to increase the amount of money paid out to those affected. They are hoping to get a favorable ruling from the judge, or a new offer from the credit bureaus.
If after successfully filing bankruptcy, you were able to exit with your debts discharged, but still saw "charge-off" or "120 days late" statements on your credit report, you may want to get in touch with Robert Weed. Check out his site at: http://stopthebankruptcydischargesettlement.com/
If we hear of further updates to this major bankruptcy case we'll provide an update.