How to Rebuild Credit After Bankruptcy

Bankruptcy and Your Credit Report

If you must file bankruptcy, you have two options – Chapter 7 or Chapter-. Chapter 7 is known as a “liquidation bankruptcy” and permits you to discharge your debt. Chapter- is known as a “reorganization bankruptcy” and provides a way to repay what you owe after a repayment plan has been negotiated.

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.

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.

Can I Rebuild My Credit Legally?

There is a legal route to challenging information on your credit report. If you believe any entry on your credit report is inaccurate, the Fair Credit Reporting Act (FCRA) allows you to contest this information.

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 this sounds like a solution you are interested in, you could benefit from expert advice and assistance. The legal professionals at Lexington Law have the tools and experience to help you. Consider Lexington Law when it comes to deleting negative entries from your credit report.

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