How to Rebuild Credit After Bankruptcy

How long will a Bankruptcy ruin a person’s credit?

If bankruptcy is inevitable, you may file either a Chapter 7 bankruptcy or a Chapter- bankruptcy. Chapter 7, also called a “liquidation bankruptcy,” provides for the discharge of your debt. Chapter-, also called a “reorganization bankruptcy,” allows you to negotiate a repayment plan.

How Does Bankruptcy Affect Your Credit History?

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 credit company will most likely deem a person with a bankruptcy on their credit report as a possible financial liability. In light of this, you might want to consider repairing your credit score.

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.

Rebuild Your Credit Legally

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.

If you are interested in pursuing this avenue of credit repair, expert advice and assistance can be invaluable. The legal professionals at Lexington Law can assist you with removing erroneous entries from your credit report and can guide you through the process.

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 lexingtonlaw.com .