You’ve finished your Chapter 13 and emerged from bankruptcy with your home loan current.
But your credit report is a blank page on your mortgage.
The mortgage servicer isn’t reporting your payments to the credit reporting agencies.
Nothing. Nada. Crickets.
So, even though you’re making regular payments, you’re not visibly rebuilding your credit.
Ask the servicer and they’ll tell you that they can’t report your payments “because of your bankruptcy discharge“.
But they are wrong: a little-discussed provision of Chapter 13 says that long-term mortgage debt is not discharged in 13.
Yup. The mortgage loan is not discharged as a personal obligation.
And therefore, there is no bar to the servicer reporting your payments, and every danger should they not report.
Servicer’s obligation to report
Put simply, if a creditor reported to credit reporting agencies before the bankruptcy was filed, then there is an obligation to report after the bankruptcy. The “furnisher”, the creditor who supplies information to the credit reporting agency, has an obligation to make the information on file fully accurate. [Read more…]