How to Restore Credit After Bankruptcy
There are ways to repair your credit after a bankruptcy. Although these systems will not help immediately, they can be used to help repair your credit over time. Taking the needed steps to erase the bankruptcy record from your report or to improve your credit after a bankruptcy can place you on the right path to prepare your credit report and score for the future.
How could you remove a bankruptcy and increase your credit score?
Any debts that were extinguished during bankruptcy will listed as either "Charge-off" or "BK Liq Reo." The bankruptcy will itself appear under the public record section as a Chapter 7 or Chapter 13.
There is really just one way to eradicate a bankruptcy completely from your credit record and that is to deal with the credit bureaus directly. There is almost always some kind of mistake in the bankruptcy record since it was written by a human.
Look closely on your credit report for any mistake the data clerk made when adding up all of the bankruptcy accounts. They often round the number to the next dollar amount and this is technically not the actual number. Therefore, you could challenge this and in a lot of situations the bankruptcy will be eradicated.
Sometimes bankruptcies are easier to erase than other items on your credit file. Why? Because bankruptcy files contain a lot of information, so the probability of mistakes is extremely high, and they are frequently reported by busy overworked court clerks.
Working with local courts is quite different from working with typical creditors. Getting the courts to cooperate will make it difficult for the the three credit reporting agencies to respond to your dispute letter within the allotted time, and the court's disorganization can work to your advantage.
When sending your letter of dispute, make sure that it is addressed to the three major credit bureaus, not to the local government office that maintains the bankruptcy file. The credit reporting companies must correct or verify any errors within a certain time frame (usually 30 days) or remove them from your credit report. It is not difficult to find some inaccurate information in all the bankruptcy papers, so use this to your benefit.
Remember that bankruptcy is not the death of your credit life, and it can even be easy to remedy compared to the many minor negative items that may show on your report. Look over your bankruptcy records thoroughly, determine if there are any mistakes, and then make your claim with the bureau demanding them to remove it from your credit report so that you can start with a clean slate.
How could you remove a bankruptcy and increase your credit score?
Any debts that were extinguished during bankruptcy will listed as either "Charge-off" or "BK Liq Reo." The bankruptcy will itself appear under the public record section as a Chapter 7 or Chapter 13.
There is really just one way to eradicate a bankruptcy completely from your credit record and that is to deal with the credit bureaus directly. There is almost always some kind of mistake in the bankruptcy record since it was written by a human.
Look closely on your credit report for any mistake the data clerk made when adding up all of the bankruptcy accounts. They often round the number to the next dollar amount and this is technically not the actual number. Therefore, you could challenge this and in a lot of situations the bankruptcy will be eradicated.
Sometimes bankruptcies are easier to erase than other items on your credit file. Why? Because bankruptcy files contain a lot of information, so the probability of mistakes is extremely high, and they are frequently reported by busy overworked court clerks.
Working with local courts is quite different from working with typical creditors. Getting the courts to cooperate will make it difficult for the the three credit reporting agencies to respond to your dispute letter within the allotted time, and the court's disorganization can work to your advantage.
When sending your letter of dispute, make sure that it is addressed to the three major credit bureaus, not to the local government office that maintains the bankruptcy file. The credit reporting companies must correct or verify any errors within a certain time frame (usually 30 days) or remove them from your credit report. It is not difficult to find some inaccurate information in all the bankruptcy papers, so use this to your benefit.
Remember that bankruptcy is not the death of your credit life, and it can even be easy to remedy compared to the many minor negative items that may show on your report. Look over your bankruptcy records thoroughly, determine if there are any mistakes, and then make your claim with the bureau demanding them to remove it from your credit report so that you can start with a clean slate.
About the Author:
The most effective credit repair system I've come across is Credit Repair Magic, available at CreditRepairMagic.com. It's the fastest and most cost-effective credit repair system I've seen. Don't waste your time and money with useless e-books or ridiculously overpriced monthly services. Download the best program to dispute bad credit today.
posted by Credit Counseling at
5:18 AM
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