Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “Can I get credit after filing personal bankruptcy?”
A banking company based in Cincinnati is in the hot seat after it revealed that it had inadvertently told credit rating agencies that customers had filed for bankruptcy when they never did. Fifth Third Bank sent out an undisclosed number of letters to customers last month apologizing for its mistake, something that many innocent victims say does not go far enough to remedy the problem.
According to a recent investigation into the matter, Fifth Third Bank inaccurately reported to Experian, Equifax and TransUnion that some customers had filed for bankruptcy. Fifth Third admitted that the problem went unresolved for weeks, but the bank says it is working to fix the issue now. Though the company would not say exactly how many people were impacted, several customers say they were told the number could be more than 20,000.
The letter sent to customers says that the mistake was made as the bank was transitioning to a new computer system. The bank claims that it is working with the major credit bureaus to fix the problem and reverse the damage that has been done to customers’ credit ratings. The bank has said that maintaining accurate records is important and that the mistake is not one it takes lightly, especially given how serious the damage could have been to some customers.
So what kind of damage are we talking about? Though Fifth Third says it will fix its mistake and that no lasting harm will be done to customers, what do those who actually file bankruptcy need to expect in terms of a hit to their credit report? The reality is that it’s nearly impossible to say exactly what damage will be done to your credit score, though there are some general guidelines.
FICO has said that according to its own research, a bankruptcy could knock up to 240 points off the credit score of someone with a 780 or above. For those with a 680, bankruptcy would have a smaller impact, knocking up to 150 points off the score. Though the drop is much larger for someone with a higher credit score, the end result is that both end up around the low 500s.
The good news is that for those who do choose to file are not destined to have bad credit forever. Bankruptcies will knock your score, but they can be rebuilt once you are able to get your finances back in order. Everyone should understand that bankruptcy isn’t forever and that the bankruptcy will come off your credit report after 10 years.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC find more resources here. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.
About The Author:
Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues. Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree. After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations. He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte. In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.
“5/3 Bank accidentally reported some customers as filing for bankruptcy,” published at WLWT.com.
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