Bank erroneously declares thousands bankrupt

Bank erroneously declares thousands bankrupt

Arizona residents facing financial difficulties know how important it is to budget their money and try to save as much as possible to avoid missing out on any bill payments. The decision to declare bankruptcy is no easy one, and people make the decision after weighing their overwhelming bills against all the benefits bankruptcy has to offer. However, a bank took that decision away from thousands of customers as it mistakenly reported some customers as bankrupt last year.

According to the bank, they made the mistake between October and December of last year, and customers were notified of the mistake this month. According to the bank, people were reported bankrupt to four credit bureau reporting agencies. However, this glitch should not affect their credit score, if they didn't apply for credit cards or weren't denied for credit.

Even though the bank claims that many people were not affected, one bank representative reported the number of people affected was 21,000. The glitch took place as the bank updated their computer systems.

By committing this mistake for thousands of customers and affecting their credit scores and loan applications, the bank may have perpetuated many misconceptions people have about bankruptcy. But the truth of the matter is that a bankruptcy filing can be of great benefit to those who need it, as it wipes out most bills and even some taxes. Personal bankruptcy, whether it is Chapter 7 or 13, can help filers ease their financial burden and begin their financial life anew, without the anxiety of overwhelming bills. Arizona residents filing for bankruptcy may want to get more information about their options.

Source: mlive.com, "Fifth Third Bank incorrectly reports credit card customers as bankrupt," Shandra Martinez, Feb. 19, 2014

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