Legal Question in Credit and Debt Law in Georgia
Due to a divorce in 2005, I had to file bankruptcy on items I cosigned with my now ex-husband. He did not want the house we shared so he quit claimed it to me. I reassumed the loan on the house, but Litton Loan did not send my bankruptcy attorney reaffirmation papers. I made all of my payments on time and in full until I sold the house in May of 2006. This is being reported negatively as included in my bankruptcy on my credit report. I have contacted Litton several times in the past 4 years asking them to change this. They respond by stating as an accommodation, they have submitted a Universal Data Form to the four major credit reporting agencies that they update the loan as "paid in full". I have sent return receipt letters to the credit agencies showing them the settlement papers where I sold the house and the canceled to check to Litton, but they respond by telling me they are reporting this correctly as being included in the bankruptcy, which looks like a foreclosure on my credit report. I have a 703 credit score, and I can't get a credit card. I have reported Litton to the Better Business Bureau in Texas. I am at a loss on what is the next step I should take in trying to get this correctly reported on my credit report. Can you tell me what I should do at this point. I just want my name and credit in good standing.
2 Answers from Attorneys
You omit key details, and are too vague on others. If you did not reaffirm in a Ch. 7 case, and the debt was discharged, the credit report is accurate and correct. Voluntarily paying off the lien after that does not alter that conclusion.
You said "I reassumed the loan on the house, but Litton Loan did not send my bankruptcy attorney reaffirmation papers." If no reaffirmation papers were signed, the debt was legally discharged even if you made voluntary payments. So it sounds like the debt was reported correctly. If they have added that you paid the debt in full, they have done more than required and your complaint to the BBB is inappropriate and probably will keep them from voluntarily assisting you.
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