Bankruptcy Filers Should See Improved Credit Score
Credit bureaus must make changes to their systems to update prior debts discharged in a Chapter 7 bankruptcy case.
A recent court order has required the three major credit bureaus (Experian, Equifax and TransUnion) to clean up the credit reports of millions of consumers who have filed for Chapter 7 bankruptcy protection. What often has happened is that old debt, discharged in the bankruptcy filing continues to appear on individual’s credit reports.
Chapter 7 Audits Return
Debitor audits have returned to Chapter 7 bankruptcy cases.
Although it does not come with a great shock, debtor audits in Chapter 7 bankruptcy cases have returned. The U.S Trustee has commenced debtor audits as of May 12, 2008.
Isn’t the U.S. Trustee technically doing debtor audits when bringing 2004 Exam Subpoenas? Isn’t the U.S. Trustee already seeking tax documentation and proof of income through these 2004 Exam Subpoenas? Of course. However, they are not technically considered audits as mandated in Section 603(a) of Public Law 109-8, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.