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How Bankruptcy Destroys Your CreditIf bankruptcy is unavoidable and no other financial options remain, 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 bankruptcy will allow you to discharge your debts, while Chapter 13 provides a way to repay your debts by coming up with a negotiated repayment plan. What Bankruptcy Does to Your Credit HistoryFiling for bankruptcy is a way to stop creditors from trying to collect on the debts you owe, but by no means does it give you a clean financial slate. Bankruptcy will have a serious and long term effect on your credit report, and your credit worthiness. This means that obtaining a loan or line of credit in the future will be more difficult than you might imagine. First of all, if you do nothing to remove bankruptcy from your credit report, it will remain for 10 years. You could try to begin rebuilding your credit score, which will instantly drop hundreds of points, but this in an uphill battle when nobody wants to offer you credit. Any credit company will view a person with a bankruptcy on their credit report as a potential financial liability. This is one reason you might want to consider the option to repair your credit after bankruptcy. Don't Wait 10 Years to Rebuild Your CreditInstead of simply waiting 10 years for the bankruptcy entry to clear from your credit report, you can take action that will make a difference. Credit repair after bankruptcy gives you a way to rebuild your credit score much more quickly, become eligible for new loans in a shorter time period, and become credit worthy again much faster. Sound good? Keep reading to learn more. How to Legally Rebuild Credit After BankruptcyThere is a legal route to challenging - and changing - information on your credit report after you have filed bankruptcy. If you believe any entry on your bankruptcy credit report is inaccurate, the Fair Credit Reporting Act (FCRA) allows you to contest this information. Creditors and credit bureaus are then required by law to investigate and verify this information and report back to you. If negative information such as a bankruptcy entry cannot be verified it has to be permanently deleted from your credit report. If this sounds like a possible solution for you to start rebuilding good credit, then you could benefit from expert advice and assistance. The legal professionals at Lexington Law have the tools and experience it takes to help you remove bankruptcy from your credit report, and have been able to help thousands of people who found themselves in a situation just like yours. Consider Lexington Law when it comes to help with deleting negative entries, like bankruptcy, from your credit report.Home Back to List of Articles Blog Explore our Sitemap
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