Bank of America & JPMorgan Chase Completely Forgive Debts Following Bankruptcy
For the longest time, consumers with credit card debt through some of the nation’s largest banks had to fear bankruptcy for one major reason: their credit report.
Although a Chapter 7 bankruptcy would effectively wipe away all of a person’s unsecured debts, there was still that lingering fear of how bankruptcy could ruin their line of credit. While many found that they could improve their credit score by taking small steps, there were still many others who had seen the repeated negative effects of bad credit, such as having their loans denied, or frequently losing their jobs.
Bank of America, JPMorgan Chase, and other big name money lenders, such as Citigroup and Synchrony Financial (formerly GE Capital Retail Finance), had been causing problems for many people who went through bankruptcy to get out from under the burden of massive credit card debt. Although, through federal law, the debts should have been eliminated because of the bankruptcy, the banks had been keeping the debts alive on consumers’ credit reports.
From there, if the person wanted to finally have their credit score cleaned up, they would need to pay in full the debts they had missed. Debts that were supposedly wiped away through bankruptcy.
Multiple lawsuits leveled against the banks have caused them to update their policies regarding old debt left behind on credit reports. The lawsuits range from those accusing the banks of engineering ruthless debt collection habits, and also others suggesting that the banks were openly ignoring federal law.
While those investigations are still under way, the banks have agreed to update their borrowers’ credit reports to accurately show that their debts had been forgiven, giving them a truly fresh start.
If you are being overwhelmed by debt, bankruptcy is just the thing you need to get back on your feet. Through bankruptcy, you can reorganize your debt into a manageable repayment plan, or possibly even have many debts wiped away entirely.
Call us today to speak with one of our professional bankruptcy attorneys. Your next step to financial freedom is just a phone call away.
