At our law firm, we assist New Mexicans who face insurmountable debt with facing their financial problems with creativity and from a position of strength. A variety of approaches to these issues exists, but often our clients ultimately decide to use bankruptcy as the main tool for financial recovery.
We recently posted information about steps being taken to improve the quality of consumer data that the three major credit bureaus use to evaluate people's creditworthiness. In that blog post, we explained that Experian, TransUnion and Equifax entered into a settlement with 31 state attorneys general called the National Consumer Assistance Plan.
Beginning July 1, the three major credit bureaus will not consider public tax liens or civil judgments in analyzing the consumer creditworthiness unless specific new standards of data reliability are met. This change is pursuant to a settlement called the National Consumer Assistance Plan that involves these bureaus - Experian, TransUnion and Equifax - as well as the attorneys general from 31 states.
Some New Mexicans may shy away from bankruptcy because they believe it will be devastating for their credit. While a Chapter 7 consumer bankruptcy remains on your credit report for 10 years, many lenders are still willing to extend credit to a recently bankrupt borrower. Because you cannot receive another Chapter 7 discharge again for eight years, you are not likely to have new debt discharged.