Bankruptcy and Clearing up Your Credit
After bankruptcy there are procedures you can follow to help repair your credit back to its original state. This will not happen in a day or two, but over time you will see results. Make sure to follow the right steps to remove the negative entries left by the bankruptcy and get you back on the right road.
There are steps you can take after bankruptcy to fix your credit file.
Any derogatory accounts that were discharged during bankruptcy will show up as either "BK Liq Reo" or "Charge-off." The bankruptcy will itself appear under the public record section as a Ch. 7 or Ch. 13.
The best way to erase a bankruptcy from your credit record is to challenge it with Experian, Transunion and Equifax directly. Find some mistake in the actual bankruptcy claim; you can usually discover mistakes since a human being had to add the bankruptcy into your credit bureau record.
One of the major possible problems you can dispute in a bankruptcy is the dollar amount of each account in question. Often creditors will round up the account balance number to the nearest dollar for accounting purposes. This can be challenged since the actual amount is technically not correct. In many cases, the bankruptcy is ordered removed.
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 errors is extremely high, and they are frequently reported by busy overworked court clerks.
There is a difference when dealing with the government compared to the private agencies. The government will take much longer to respond and therefore make it harder for the bureaus to reply to your claim. The government's inability to respond quickly can be a benefit to you.
This next step is important: send a demand for correction to all three major credit bureaus, not to the court that filed the bankruptcy claim. The credit bureau will need to correct any of the incorrect information on the credit report in a specific amount of time or erase the information from the report. You should take advantage of this system.
A bankruptcy is not the end of the rope for your credit, and often it is much simpler to erase a bankruptcy record then it would be to erase a lot of small diverse debts on your credit report. Look over the bankruptcy records completely, find something inaccurate, and file a request to have it removed from your report, so you can begin building your credit file again.
There are steps you can take after bankruptcy to fix your credit file.
Any derogatory accounts that were discharged during bankruptcy will show up as either "BK Liq Reo" or "Charge-off." The bankruptcy will itself appear under the public record section as a Ch. 7 or Ch. 13.
The best way to erase a bankruptcy from your credit record is to challenge it with Experian, Transunion and Equifax directly. Find some mistake in the actual bankruptcy claim; you can usually discover mistakes since a human being had to add the bankruptcy into your credit bureau record.
One of the major possible problems you can dispute in a bankruptcy is the dollar amount of each account in question. Often creditors will round up the account balance number to the nearest dollar for accounting purposes. This can be challenged since the actual amount is technically not correct. In many cases, the bankruptcy is ordered removed.
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 errors is extremely high, and they are frequently reported by busy overworked court clerks.
There is a difference when dealing with the government compared to the private agencies. The government will take much longer to respond and therefore make it harder for the bureaus to reply to your claim. The government's inability to respond quickly can be a benefit to you.
This next step is important: send a demand for correction to all three major credit bureaus, not to the court that filed the bankruptcy claim. The credit bureau will need to correct any of the incorrect information on the credit report in a specific amount of time or erase the information from the report. You should take advantage of this system.
A bankruptcy is not the end of the rope for your credit, and often it is much simpler to erase a bankruptcy record then it would be to erase a lot of small diverse debts on your credit report. Look over the bankruptcy records completely, find something inaccurate, and file a request to have it removed from your report, so you can begin building your credit file again.
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