After bankruptcy: My mortgage payments are not appearing on my credit report.

One reason to file bankruptcy is to get back to good credit.  Once your credit has gone bad, bankruptcy, for most people, is the fastest way to fix it. I encourage all my clients to rebuild your credit after bankruptcy.

Unfortunately after your bankruptcy discharge most mortgage companies will not report your monthly mortgage payments to the credit reporting agencies.

Making your after bankruptcy mortgage payments on time doesn’t help your credit score one bit. Those payments do not appear on your report.

Instead your mortgage will just show “included in bankruptcy.”

This is very confusing for people because they think that since they are keeping their house that the mortgage was not included in the bankruptcy filing. 

On your petition you must list all assets and all debts. 

(The bankruptcy discharges your credit cards, medical bills, debt collectors, bank loans, car payments, mortgages.  It doesn’t discharge student loans, most taxes, child support or alimony.)

Having your mortgage discharged through your bankruptcy is a benefit if in the future you cannot sell your home for a price that is large enough to pay off the lien.

You also have the benefit of just walking away from the house. 

Also, after bankruptcy late payments do not 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.”  I do not recommend reaffirming your mortgage in most cases.




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