Expert: Terry Leeders - 5/10/2008

Question
I filed bankruptcy in July 2006, chapter 13.  At that time our mortgage was late and was included in this chp. 13.  My husband who did not file with me shows on his credit report with the mortgage company that he is 120 days late, which we are not.  The mortgage company says this was from 2006 and has to stay on his credit report because he is on the mortgage as per bankruptcy law.  Needless to say, i would never have filed for this chp. 13.  My second mortgage shows current and they were in the chp. 13 also.  Now we cannot get any kind of credit or refi. because it is killing his score.  Even though we are not late now and are current.  So i wanted to know if this is true that they can do this.

Answer
A creditor can only report truthful facts on a credit report.  If you were 120days behind when you filed, and he was a cosigner/co-maker on the mortgage, then that fact can be truthfully reported on his credit, because, he was in fact 120 days behind.  If there is a factual error on the report, he can contact the credit bureau to investigate.  They will review it with the creditor in question, and get him an answer usually within 30 days, and will provide him with a free 'clean' report if they made any changes.