Credit reporting companies are not listing my mortgage payments after my bankruptcy

Getting rid of bad credit is one reason to file bankruptcy. If your credit has gotten off track bankruptcy, is the fastest way to fix it for most people. I encourage all my clients to rebuild your credit after bankruptcy.  So you may be disappointed, and even angry, about how the credit reporting companies show your mortgage payments. Making your after bankruptcy mortgage payments on time doesn’t help your credit score one bit. Those payments don’t show at all. Your mortgage will be reported “included in bankruptcy.” “I didn’t include my mortgage.” is what I hear from my clients.

When you file bankruptcy, you “include” everything. That’s what the law requires. You pick and choose what debts you want to keep paying-keep paying the house if you want to live there; keep paying the car if you need it to get to work. But you don’t pick and choose what debts are covered. Paying your house payment on time after bankruptcy, gives you a place to live. But it does not Boost your credit score. Even if you are keeping the house, the discharge is an important benefit to you. If real estate values don’t recover-or drop again-and you can’t sell the house when you are ready to move, you are still protected. You can move out and not owe them anything. Also, after bankruptcy late payments don’t count against your after bankruptcy credit. If you complain to the mortgage company about your credit report, they will tell you that “you should have reaffirmed your mortgage.” Reaffirming takes the house out of the bankruptcy.

Is reaffirming a benefit to you maybe you get back to good credit a month or two sooner than you would just be getting and paying new credit cards. The disadvantage if you can’t pay or can’t sell the house, you will still be responsible for the mortgage. That disadvantage is alot bigger than the benefit.