Legal Question in Bankruptcy in California

Re: Discharge or filing date for credit report removal

Hi. I sent you an answer to your question earlier, and just wanted to add to it.

First, a lot of attorneys make mistakes about the number of years bankr. can be on credit rating, so I wanted you to actually see the relevant statute, to feel comfortable with my response. It is the Fair Credit Reporting Act, at 15 U.S.C. � 1681(c): this provides that cases under Title 11 (i.e., all types of Bankr. Code cases), or under the (former) Bankruptcy Act (which governed cases filed to and until 9/30/79), may be reported so long as the date of entry of the order for relief or the date of adjudication is not more than 10 years prior to the date of the report."

It is true that many credit agencies distinguish, in their discretion, between 7s and 13s. Equifax for example keeps it on for 10 years for a 7, but only 10 years for a 13 - but in a case where it was not removed after 7 years and the debtor had been in 13, Equifax won, since there is no rule, other than its self-imposed rule, that it had to take the 13 off the credit report.

Next, you asked is it legal not to report after 7 or 10 years. Wel,, if the question is "did you EVER" file into bankruptcy", then it doesn't matter how long it's been - and i's not a question of legality. It's just that you're supposed to tell the truth.

Now, I don't want to sound like a Polyanna, but this will not necessarily hurt you. First, ALL governmental agencies are absolutely prohibited under Bankruptcy Code Section 525(a)from discriminating against someone (and denying or terminating employment, and/or denying, revoking, suspending, etc. a license ) SOLELY because they went bankrupt. Section 525(b) extends this in many ways to private employers. (Of course, what if they argue, it's not SOLELY because...) But the real thing to think about here is that so many millions of people have gonve bankrupt or been touched by bankruptcy in the last 20 years, that the taint is largely dissipated. I've had many people rebuild their credit rating and even be able to get a house mortgage (where they otherwise could afford it) and get jobs they were sure they couldn't get, who filed for bankruptcy. So it's not as bad as you may be imagining )although don't get me wrong; I've been invilved too much in bankruptcy not to know and understand the strong emotional

issues it brings up.)

Hope this answers all remaining questions.

Neil Ackerman