Tag Archives: credit report

Handling Mistakes on Your Credit Report

Your credit score is important to your financial life. If you are considering financing or re-financing your home, you should thoroughly review your credit report to confirm it is accurate prior to applying for the loan. Mistakes on credit reports are more common that you think and they can cause serious damage to your credit score. In fact, failure to catch an error could affect your ability to obtain a mortgage loan or to be eligible for more advantageous loan terms.

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Handling a Misreported Short Sale

If you have previously had a short sale on a home, you must confirm that it is properly reported and not listed as a foreclosure. A foreclosure notation on your credit report is extremely damaging to how lenders view your credit-worthiness. Under the law, your creditor must accurately report the circumstances surrounding your default or delinquent account. It is common for a short sale to be noted as the debt being “settled for less than the full balance.” This is an accurate description. However, you must also confirm that the lender does not add the code for a foreclosure to the notation. If you are unable to determine what the codes listed on your credit report mean, it is important to contact the credit reporting agency and have them explain them to you.

Take Immediate Action To Correct Your Credit Report

If you discover there are improper codes on your credit report, you should take immediate action to have it corrected. If you are in the process of applying for new loans, you should put everything on hold until the mistake is corrected. One foreclosure entry could result in you not being eligible for a mortgage loan for three years and up to seven years before you are eligible for a conventional loan. In comparison, a short sale notation only negatively impacts your ability to obtain a conventional loan for two years. As you can see, correcting an improper foreclosure entry or code on your credit report is extremely important.

Correcting Mistakes and Knowing Your Rights

To correct mistakes on your credit report, you should follow the credit reporting bureau’s instructions. Typically, they require you to submit your written objection and any supporting evidence you have that the notation is incorrect. Within 60 days, the creditor that made the report should provide you with a confirmation letter stating that your report has been updated. If your lender fails to make the necessary corrections, it is time to contact us for help. You have rights under the Fair Credit Reporting Act and we will take action to get the issue resolved.

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The information on this blog or any blog is not intended as, and should not be taken as, legal advice.


Chapter 7, Chapter 13 & Your Credit Report

Credit Report pic

You are probably aware that the primary downside to filing for bankruptcy protection is that it negatively impacts your credit score. However, how long your bankruptcy remains on your credit report depends on whether you file a Chapter 7 or Chapter 13 case.

Chapter 7

When you file a Chapter 7, the bankruptcy notation remains on your credit report for ten years from the date your petition was filed. Although this seems like a long time for it to impact your credit score, it is often a minor consequence when compared to the quick, comprehensive relief from your debt that a Chapter 7 case provides. A typical Chapter 7 case lasts four to six months, you can eliminate the majority (if not all) of your debt, and you can start rebuilding your credit sooner.

Chapter 13

A Chapter 13 case will remain on your credit report for seven years from your bankruptcy filing date. The reason a Chapter 13 remains on your credit report for a shorter amount of time than a Chapter 7 is that a Chapter 13 debtor repays a portion of the debt he or she owes under a repayment plan. Typically, a Chapter 13 filing does not negatively impact your credit score as much as a Chapter 7 case.

When you are struggling to pay your debt, it is important to understand all of your debt relief options. Let us review your individual financial circumstances and help you understand which type of bankruptcy filing would be most beneficial to you.

Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.

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