I just came out of chapter 7 bankruptcy. I kept my house and auto loan through the bankruptcy. I keep getting letters in the mail from auto dealers saying if you carry over a auto loan throught the discharge, as you continuing to make payments on the loan it does not not show up on your report to help re-establish your credit. I called my bank where I have the loan, and they couldnt answer my question. Is this true?
Thank you inadvance
1 Answer from Attorneys
It is up to a subscriber to a credit reporting bureau whether to report a debt or not. If they report it, they cannot display incorrect information pursuant to the Fair Debt Reporting Act. However, they can choose not to report anything.
That is a new tactic employed by lenders when debtors do not reaffirm the debt. It is an inconvenience, but nothing more. You can always show to any future lender that you actually made the payments and you are better off not being liable in the event you cannot make the payments at any time in the future.