The Fair Credit Reporting Act, 6 U.S.C. Section 605, is the law that controls credit reporting. The law states that credit reporting agencies may not report a Bankruptcy case on a person's credit report after ten years from the date the Bankruptcy case is filed.

Other bad credit information is removed after seven years. The larger credit reporting agencies belong to an organization called the Associated Credit Bureaus. The Associated Credit Bureau's policy is to remove Chapter 11 and Chapter 13 cases from the credit report after seven years, encouraging debtors to file under these chapters. The Bankruptcy court has no influence over these reporting policies.

You are under Bankruptcy protection when and after your petition is filed and a case number is assigned. The moment a petition has been filed, there exists an automatic stay, or suspension, of virtually all litigation and other action by creditors against the debtor or the debtor's property. In other words, once a petition has been filed, creditors cannot commence or continue most legal actions, such as foreclosure of liens, execution on judgments, trials, (garnishments), or any action to repossess property in the hands of the debtor. Creditors can, however, seek to have the court allow them to pursue or continue legal collection actions, but must show cause for doing so.

Notification
All creditors who were listed on your mailing matrix or who entered an appearance in your case will be notified. If you have omitted a credit, you must immediately advise our office. Under the BAPCPA, omitted creditors may not be subject to the discharge, so it is imperative you list all of you debts in your Bankruptcy. If our office must list additional creditors once your case has been filed you will incur additional fees. So make sure all your creditors are listed in your Bankruptcy prior to filing. Our firm will provide all clients with a three-source credit report. However, you must carefully review your credit report to ensure all your debts our listed.

Meeting of Creditors
The first meeting of creditors is required under Section 341 of the Bankruptcy Code and you are required to attend. However, do not be nervous. Though you will be under oath, the hearing is fairly informal and is conducted by a Bankruptcy Trustee, who is usually an attorney or a CPA. The hearing takes place in an office-like room. There is no judge, jury and often no creditors. So, please, relax. One of our firms attorneys will be with you at the hearing and we will prepare prior to the Trustee interview. The entire hearing generally lasts less than five minutes.

The purpose of the meeting is to enable the appointed Trustee to examine you under oath regarding the information that has been filed with the Court. The Trustee or a creditor may inquire about your financial status, conduct and financial affairs, and any other matters that are relevant to the administration of your estate. If a creditor wishes to do an in-depth examination, he or she will request a Rule 2004 examination from the Court. Failure to attend this meeting may result in dismissal of your Bankruptcy case.

Discharges
Individual debtors are eligible to receive their Chapter 7 discharge 60 days from the date set for the 341 meeting unless a creditor objects in a timely manner or the court orders. In a normal case where no complaint objecting to the discharge is filed, the debtor will receive a discharge within five working days after the 60 days has passed. If a notice of amendment to schedules is filed to add creditors, the discharge will be delayed an additional 30 days from the date of filing the notice.

Case Closed
Since all cases bear unique circumstances, it is difficult to pinpoint an exact time that your case will be closed. Many Chapter 7 no asset cases are closed within 90 days of filing if no disputes have arisen. Chapter 7 asset cases require that the Trustee liquidate the assets, which often takes several years. Chapter 13 cases remain open as long as the plan payments are being made, generally for three to five years after the plan has been confirmed. Chapter 11 reorganization cases are more complicated and may remain open longer than three years even if a plan has been confirmed. Accordingly, if the Chapter 7 Trustee has intercepted your tax return, he will keep your case open to disburse funds. If you are entitled to any remaining funds the Trustee will provide those funds to you after disbursement. This may take several months.

Bank Accounts
You do not have to close your bank accounts; however, any funds remaining in your bank account on the filing date may be nonexempt property of your Bankruptcy estate. In other words the Trustee may seek to compel you to turnover any funds maintained in any of your bank accounts on your filing date, since cash items are generally not exempt. Accordingly, while it is not advised that you to incur new debt, you may consider ensuring your monthly rent, cell phone, and power/electric bills are made prior to your Bankruptcy filing. Also, be aware that simply writing checks and mailing them to your creditors is generally not sufficient to deplete your bank accounts. Until those drafts post to your account and the funds are withdrawn, you have money in your bank account that the Trustee wants. So, you may wish to actually withdraw your funds and issue money orders for any bill payments. Keep track of all these payments since the Trustee will likely request proof of how your bank account monies were disbursed (especially if a large sum is withdrawn close to your Bankruptcy filing date).

Please keep in mind that you should NOT use bank account money to pay relatives, friends or creditors for preexisting debts or loans. The Trustee may seek to recover any monies paid to friends or relatives within two years of your Bankruptcy filing. Essentially the Trustee accomplishes this by filing a lawsuit against these people. You certainly do not want to subject your friends or relatives to lawsuits, so it is best not to make these "preferential" transfers prior to filing your Bankruptcy. However, if you have made such a transfer it MUST be disclosed to the Bankruptcy Court. We can still protect friends and relatives through Chapter 13 by repaying your creditors the amount that would have been recovered by the Chapter 7 Trustee. If this is an issue you must advise our office if you have not already done so.

The three nationwide consumer reporting companies have set up one central web site, toll-free telephone number, and mailing address through which you can order your free annual report. To order, click on www.annualcreditreport.com, call 877-322-8228, or complete the Annual Credit Report Request Form [pdf] and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from www.ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are only providing free annual credit reports through www.annualcreditreport.com, 877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Soon you will be able to get your credit report for free. A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the national consumer reporting companies. The Federal Trade Commission (FTC), the National Consumer Protection Agency, enforces the FCRA with respect to consumer reporting companies.

A credit report contains information on where you live, how you pay your bills, and whether you have been sued, arrested, or filed for Bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. There are three nationwide consumer reporting companies, Equifax, Experian, and TransUnion.

Consumers in Western states will first be able to order their credit reports under the federal law beginning December 1, 2004. Consumers in other states will be able to order their copies according to a regional roll-out detailed below.

In recent months, consumers have asked the FTC for more details about their rights under the federal FCRA and the Fair and Accurate Credit Transactions (FACT) Act, which established the free credit report program. They have also asked about credit reports in general. Here are the most frequently asked questions and the answers.

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