According to the
New York Times, Bank of America and JPMorgan Chase will be fundamentally changing how
they report debts that were discharged in bankruptcy. Within the next
three months, BofA and Chase will update consumer credit reports to indicate
when a debt has been discharged in bankruptcy--even if the debt was sold
before it was discharged.
The move is related to a series of lawsuits filed in federal bankruptcy
court in White Plains, NY. The suits allege that BofA, Chase, and other
banks ignored bankruptcy discharges when selling debts to debt buyers.
BofA and Chase have agreed to properly report the discharges. BofA is going
one step further. For any credit card debts sold since May 2007, it will
completely remove negative marks from credit reports.
Only time will tell to see if they follow through.