Learn the Truth About How Bankruptcy Can Affect Your Credit Report

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.

Will Bankruptcy Affect Your Credit History Adversely?

Creditors will stop trying to collect amounts you owe once you file bankruptcy. However, this will adversely affect your credit history for quite some time. In essence, filing bankruptcy will make it much more difficult to purchase a home or buy a new car.

When you file bankruptcy, your credit score will plunge by hundreds of points. This same bankruptcy will remain on your credit report for 10 years, unless you try to remove it. One option to consider is rebuilding your credit score. This, however, is difficult at best when no one is interested in offering credit to you.

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.

Instead of waiting 10 years for the bankruptcy to clear from your credit report, you can take definitive action. Credit repair allows you to rebuild your credit score more quickly, become eligible for new loans in less time, and become credit worthy faster.

Can I Rebuild My Credit Legally?

It IS legal to contest inaccurate information contained on your credit report. The Fair Credit Reporting Act (FCRA) allows you to contest any information which, in your opinion, is inaccurate.

Creditors and credit bureaus are required by law to investigate and verify this information. If negative information cannot be verified, it must be permanently deleted.

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.

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