If you go into default again after Fresh Start, we’ll use your loan’s original date of delinquency in the information we provide to credit reporting agencies. That means that Fresh Start won’t reset how long credit reporting agencies report your loan as in default.
If you’ve been delinquent on a loan for more than seven years, that defaulted loan doesn’t show up on your credit report anymore. If you’re in this situation, we will make sure you won’t get a default reported for the loan anymore. So if you take advantage of Fresh Start but default again, that defaulted loan won’t show up on your credit report.
If you take out a new loan during or after Fresh Start, that new loan won’t be affected by Fresh Start. So if you default on that new loan, it will be reported to credit reporting agencies, and you will experience all the regular effects of default.
