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Bankruptcy

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typhoon

Guest
What is the name of your state? California

About couple years ago, I filed for bankrupcty "chaper 7" in my name but recently my spouse pulled up a reports from Trans-union credit report. They said her name was on the bankruptcy also. My question is this when one spouse had a bankruptcy does the other spouse also involved in it or not. She never filed for bankrupcty.

Your prompt replied is appreciated

Typhoon
 


D

dorenephilpot

Guest
If she co-signed a loan with you that was included in the bankruptcy, regardless of whether you reaffirmed on it or whether you continued to pay as promised, there would be a notation on her credit report that the debt was included in a bankruptcy.

It will be obvious from reading the report that it wasn't HER BK but someone else's -- her co-signer's BK.

Hope this answers your question.
 

bigun

Senior Member
Dorene is absolutely correct. Typically when one spouse files bk and there are joint debts, the other spouse gets caught in the fallout.

However, that is starting to change. On March 1st, a case called Nelson vs. Chase Manhattan changed the landscape on this sort of reporting. Do a search at www.creditnet.com or, a "google search" and you'll find details. Also, CRA's have been losing some huge dollar lawsuits because they reported erronous information. Go to the collection thread and find a post I made yesterday about a FCRA artricle. It has the link to a Businessweek article about credit reporting. Also, the FTC did file a brief in support of Nelson .

Bottom line, here is what happens. I've talked with a couple of bankers lately and they tell me that the problem arises because the CRA's have no code to differeniate between a personal bk and just a debt that was included in a bk filing. Both bankers say their legal depts have advised them to delete the reference if a consumer complains.

I would suggest you get a copy of your wife's credit report from each CRA and take them to a lawyer versed in consumer law. It'll take some time and expense but, I think you'll be successful.
 

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