Bankruptcy and Your Credit Report
If bankruptcy is unavoidable, you can file either a Chapter 7 bankruptcy, also known as a "liquidation bankruptcy," or a Chapter 13 bankruptcy, also known as a "reorganization bankruptcy." Chapter 7 will allow you to discharge your debt, while Chapter 13 provides a way to repay your debts using a negotiated repayment plan.
Will Bankruptcy Affect Your Credit History Adversely?
Creditors will discontinue their efforts to collect debts from you when you file bankruptcy; however, be aware that this will negatively impact your credit report. As such, obtaining a loan to purchase a home or other major purchase, such as a car, may become close to impossible.
If you do nothing to remove bankruptcy from your credit report, it will remain for 10 years. You might try rebuilding your credit score, which will instantly drop hundreds of points, but this is hard when nobody wants to offer you credit.
A person who has filed bankruptcy will be considered a potential financial liability by any company that issues credit. Because of this, repairing your credit score is one strategy to consider.
You can take immediate action to rebuild your credit, instead of prolonging your credit misery for 10 years until bankruptcy drops from your credit report. If you choose credit repair, you may be able to rebuild your credit score in a fraction of the time and be approved for new loans more quickly.
Legally Rebuild Credit After Bankruptcy
Challenging information on your credit report IS legal. Pursuant to the Fair Credit Reporting Act (FCRA), you may contest any entry on your credit report which you believe is inaccurate.
If you send a dispute letter to a creditor or credit bureau, the disputed entry must be investigated and verified within a specific timeframe. Subsequently, the negative entry must be deleted in its entirety if it cannot be verified.
Expert advice can be invaluable if you decide to pursue rebuilding your credit. Lexington Law's legal professionals can guide and assist you in your attempt to remove negative entries. Consider contacting Lexington Law to get the assistance you need to clean up negative entries on your credit report. - 30462
If bankruptcy is unavoidable, you can file either a Chapter 7 bankruptcy, also known as a "liquidation bankruptcy," or a Chapter 13 bankruptcy, also known as a "reorganization bankruptcy." Chapter 7 will allow you to discharge your debt, while Chapter 13 provides a way to repay your debts using a negotiated repayment plan.
Will Bankruptcy Affect Your Credit History Adversely?
Creditors will discontinue their efforts to collect debts from you when you file bankruptcy; however, be aware that this will negatively impact your credit report. As such, obtaining a loan to purchase a home or other major purchase, such as a car, may become close to impossible.
If you do nothing to remove bankruptcy from your credit report, it will remain for 10 years. You might try rebuilding your credit score, which will instantly drop hundreds of points, but this is hard when nobody wants to offer you credit.
A person who has filed bankruptcy will be considered a potential financial liability by any company that issues credit. Because of this, repairing your credit score is one strategy to consider.
You can take immediate action to rebuild your credit, instead of prolonging your credit misery for 10 years until bankruptcy drops from your credit report. If you choose credit repair, you may be able to rebuild your credit score in a fraction of the time and be approved for new loans more quickly.
Legally Rebuild Credit After Bankruptcy
Challenging information on your credit report IS legal. Pursuant to the Fair Credit Reporting Act (FCRA), you may contest any entry on your credit report which you believe is inaccurate.
If you send a dispute letter to a creditor or credit bureau, the disputed entry must be investigated and verified within a specific timeframe. Subsequently, the negative entry must be deleted in its entirety if it cannot be verified.
Expert advice can be invaluable if you decide to pursue rebuilding your credit. Lexington Law's legal professionals can guide and assist you in your attempt to remove negative entries. Consider contacting Lexington Law to get the assistance you need to clean up negative entries on your credit report. - 30462
About the Author:
We raised our credit scores from the upper 500 range to 745 and 763 in under six months and got approved for our dream home. See proof of our credit repair success at www.creditforcouples.com and get the real truth about lexington law.
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