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Shortly after you file bankruptcy the court will send out a notice of your bankruptcy filing to all of your creditors listed in the bankruptcy. This notice lets the creditor know that any debt that is dischargeable in bankruptcy can no longer be pursued. This means that collections, lawsuits, and garnishments should stop shortly after creditors receive this notice.

About 3 months after you file your bankruptcy the court will enter an order of discharge, and this order is the official wiping out of your dischargeable debt. This means you no longer owe this debt, and your creditors should contact the three credit bureaus and update the status of your debt by noting that it was discharged in bankruptcy. However, creditors often ignore their duty and don’t report that your debt no longer exists. Having this debt still, show as open on your credit reports could significantly impact your credit score in a negative way – denying you the opportunity to get the most benefit out of your bankruptcy. Please note that the bankruptcy court does NOT do any type of reporting to the credit bureaus, so it will be your responsibility to make sure that the information contained in your reports is accurate.

I recommend that about six months after you file bankruptcy you obtain copies of your credit report from all three bureaus and that you review them carefully to make sure everything is being reported accurately. If there are errors on your credit reports you will need to dispute these mistakes with each credit bureau that is reporting the errors. I have included an article below from the Federal Trade Commission titled “Disputing Errors on Credit Reports” that will have all the information you need to obtain your credit reports for FREE, as well as the information necessary to fix the mistakes that may be keeping your credit score down.

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