Check Your Credit For Inaccuracies
You need to look for any inaccuracies that may be part of the bankruptcy entry. You will want to look very carefully for any mistake.
- Identity information
- Accounts that may belong to another person with the same or similar name
- Incorrect accounts that occurred from identity theft
- Closed accounts reported as open
- You are reported as an owner of an account but are only an authorized user
- Accounts incorrectly reported as late or delinquent
- Incorrect date opened, date of last payment, date of delinquency
- Same debt listed more than once
- Accounts that appear multiple time with different creditors listed
- Incorrect current balance
- Incorrect credit limit
There may be other inaccuracies you find as well the important part is to look closely and pay attention to detail.
If there are any inaccuracies, you simply dispute the bankruptcy entry with the credit bureaus, saying the information is incorrect and therefore should be removed.
Dispute via letter with the mistakes explained and make sure to send to each bureau. If there are no inaccuracies, move on to the next step.
Can I Remove A Bankruptcy From My Credit Report
This one is tricky. Can you remove a bankruptcy from your credit report?
Possibly. But if everything about your BK listing is accurate, then no, it will stay there.
But, if there are ANY mistakes, you may dispute them. The Fair Credit Reporting Practices Act protects your rights. If any information is inaccurate, the credit bureau must remove it, but you must prove it.
Heres where the work begins.
How To Remove Dismissed Bankruptcies From Your Credit Report
Learn how to remove dismissed bankruptcies from your credit report. Also, learn why Credit Glory makes disputing super easy.
One technique for removing dismissed bankruptcies is a dispute. This works when the court doesn’t reply to your inquiry. For your easiest way to dispute any inaccurate item, partner with a credit repair expert , today!
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How Long Do Bankruptcies Stay On Your Credit Report
The length of time that a bankruptcy filing stays on your credit report depends on what type of bankruptcy you filed. We took a look at Chapter 7 and Chapter 13, which are the two main types of consumer bankruptcies, and to see how their impacts on your credit score differ.
- Chapter 7 bankruptcy: Also known as liquidation bankruptcy, Chapter 7 is what Harrison refers to as “straight bankruptcy.” It’s the most common form of consumer bankruptcy and is usually completed within three to six months. Those who file for Chapter 7 will no longer be required to pay back any unsecured debt , like personal loans, credit cards and medical expenses, but they may have to sell some of their assets to settle secured loans. Chapter 7 bankruptcies stay on consumers’ credit reports for 10 years from their filing date.
- Chapter 13 bankruptcy: Harrison refers to Chapter 13 as the “wage earner’s bankruptcy.” This form of filing offers a payment plan for those who have the income to repay their debts, just not necessarily on time. About a third of bankruptcies filed are Chapter 13 . Those who file are still required to pay back their debts, but instead over a three-to-five year time frame. Chapter 13 bankruptcies stay on consumers’ credit reports for seven years from their filing date.
Derogatory Mark: Missed Payments
If you are at least 30 days late, expect a derogatory mark on your credit report. Missed payments typically stay on your credit reports for 7½ years from the date the account was first reported late. The later the payment goes moving to 60 days late, 90 days late and so on the greater the damage to your credit scores.
What to do: Pay your bill as soon as you can afford to. If youve never or rarely been late before, you might be able to get the creditor to drop the late fee. Call the customer service number, explain your oversight and ask if the fee can be removed. You can also write a goodwill letter. If paying the bill is not an option, call your creditor and let them know about your financial situation to see if you can work out a hardship plan.
The negative effect on your credit scores will fade over time. Try to stay on top of all your payments so positive information in your credit reports dilutes the effect of the missed payment.
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Check Your Credit Report For Bankruptcy Errors
In this step, youll need a copy of all 3 of your credit reports. This is where having a comes in handy. TransUnion is the best credit monitoring service in my opinion, plus you get a free credit score.
Review the credit report carefully for any inaccurate or incomplete information. Here is a list of the most common bankruptcy errors. Names, addresses, and phone numbers Incorrect dates Discharged debts that still show a balance
If you have found no inaccuracies within the information on your credit report, then unfortunately theres nothing that can be done to remove it prematurely, youll have to wait 7-10 years for it to fall off your credit report.
How Does A Bankruptcy Affect My Credit Score
A bankruptcy is one of the financial situations that can have the most negative effect on your credit scores. A legitimate bankruptcy can decrease a credit score by anywhere from 130 to 240 points, depending on the original score range.
If you have an average score of 680, for example, your score will drop by between 120 and 150 points following a bankruptcy. But if your score is 780, it will drop by between 220 and 240 points.
Thus, the higher your original score, the farther it will drop after filing for Chapter 7 or Chapter 13 bankruptcy. If your score starts out in the “good” range, it could immediately drop to “poor” following a bankruptcy.
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Be Sure To Make Timely Payments On Any New Debt Or Credit Products
Since late payments account for 35 percent of your credit score, you cant afford to not make timely payments on credit products when youre trying to rebuild your credit after bankruptcy. Why so? Well, all it takes is one late payment to plummet your score between 90 and 110 points, notes Equifax.
The good news is creditors wont report past due accounts until theyre delinquent by over 30 days. So, besides the fee that youll incur, a payment thats a few days late isnt the end of the world.
How To Remove Items From Your Credit Report In 2021
Weve outlined how to remove negative items from your credit report, the paid services you can opt to use, and additional information to have on hand. It is important to clarify that only incorrect items can be removed. If youve done this already, but your credit score is still low, you will need to repair bad credit over time. Although accurate items cannot be removed by you or anyone else, there are still many credit report errors that can damage your score, and these are worth looking out for.
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Reporting Debts As Discharged In Bankruptcy
While it might be daunting to think about a bankruptcy filing showing up on your for ten years, it might not be as bad as you think. A bankruptcy discharge can help you clean up debt much faster than you’d be able to do yourself.
For instance, instead of a delinquent or unpaid debt lingering on your report for years, it will show as being discharged as part of your bankruptcy. In fact, creditors won’t be able to report your debt in a variety of ways that could cause your credit to suffer, such as allowing the obligation to show as:
- currently owed or active
- having a balance due, or
- converted to a new type of debt .
Such reporting labels are often the reason creditors deny applicants credit. In some cases, applicants must pay off such debt as a condition of loan approval. Instead, when you pull your report, each qualifying debt should be reported as:
- having a zero balance, and
- discharged, “included in bankruptcy,” or similar language.
Unfortunately, some creditors don’t update information to the credit reporting agencies. This tactic could be a way to get you to pay up, even though you no longer legally owe the debt. If your credit report shows an improperly labeled discharged debt, you’ll want to take steps to correct the problem.
Path To Credit Recovery
If you are avoiding talking to a bankruptcy trustee because you are concerned about how your credit will be affected, its important to consider two factors:
If debt is holding you back from rebuilding your credit, talk with a Licensed Insolvency Trustee about how to eliminate your debt. We provide free, no-obligations consultations during which we will conduct a full debt assessment and provide you with options to get out of debt so you can build a stronger financial future.
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Discharge Date Vs Reporting Timeline
The length of time that the bankruptcy reports depends on the type you file. The rules are as follows:
- Total Discharge or Chapter 7- up to 10 years from the date of filing
- Reorganization or Chapter 11- up to 10 years from the date of filing
- Repayment Plan or Chapter 13- completed bankruptcies usually takes 3 to 5 years)- up to 7 years from the date of filing
But individual accounts included in the filing report for seven years. This is the case even if you filed under Chapter 7 or 11.
Why Repair Your Credit W/credit Glory Vs Diy
Removing inaccurate negative items helps improve your credit . DIY credit repair is a headache. Partnering w/Credit Glory is often a simpler alternative. Why?
- Easier – Making a mistake disputing DIY costs you. Credit Glory helps you build a strong case for disputing inaccurate collections .
- Saves you money – An unsuccessful dispute leaves you stuck with debt . Credit Glory helps you boost your score â which means saving money on loans .
- Top-class customer support – Credit Glory has best-in-class customer service to answer questions and keep you updated. Credit Glory even offers an industry-leading 100% money-back guarantee (if no errors are removed in the first
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Clean Up Your Financial Act
There are a number of reasons why you may have been forced to file for bankruptcy. But whats most important when rebuilding your credit is not the culprit, per se, but making sure that history doesnt repeat itself. In other words, you want to establish a solid plan for your finances to make your money work for you. In your list of objectives should be creating a realistic budget that keeps your spending in check, safety net, and plans to eradicate debt that wasnt included in the filing.
How Long Does A Chapter 7 Bankruptcy Stay On Your Credit Report
After you file for a Chapter 7 bankruptcy, it remains on your for up to ten years and youre allowed to discharge some or all of your debts. When you discharge your debts, a lender cant collect the debt and youre no longer responsible for repaying it.
If a discharged debt was reported as delinquent before you filed for bankruptcy, it will fall off of your credit report seven years from the date of delinquency. However, if a debt wasnt reported delinquent before you filed for bankruptcy, it will be removed seven years from the date you filed.
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How Do You Get Something Removed From Your Credit Report After 7 Years
In theory, debts should be automatically removed from your credit report once they reach their legal expiration . If you see debts on your credit report that are older than that, youll want to contact both the creditor and the credit bureau by mail requesting a return receipt. In your letter, include all documentation about the debt, including any inaccuracies.
Dispute Mistakes With The Credit Bureaus
You should dispute with each credit bureau that has the mistake. Explain in writing what you think is wrong, include the credit bureaus dispute form , copies of documents that support your dispute, and keep records of everything you send. If you send your dispute by mail, you can use the address found on your credit report or a credit bureaus address for disputes.
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How Does Bankruptcy Affect Credit Scores
If youve incurred this nasty line item, you might be wonderinghow does bankruptcy affect your credit? Wellit depends. No entity is 100% transparent about how it calculates your magic number. They collect your data and use unique algorithms to determine your trust based on what the lender values. However, in general, you should anticipate the average credit score after chapter 7 to be underwhelming. Even if you have incurred a 13, your score will still take a hit.
If you are currently well in the green, then you may well see a plummet of nearly 200 points. If youre already in the yellow, mathematically, it follows that a negative mark wont drag down your average as much. No matter what though, your drop will be around 120-160 points unless your score was horrendous, to begin with. When bankruptcy does come off your credit report though, it will be as though it had never happeneda clean slate. This is true whether you are able to pull it off yourself, or if you just let it fall off naturally.
Get Information From The Courts
If you still arent getting anywhere or want to follow up on what the credit bureaus state, contact the court yourself.
Do it in writing and include a self-addressed and stamped envelope to get a response. Look up the courts information yourself, including the right department to contact.
Each court is different, so call and find out where to direct your correspondence, so it doesnt get lost.
The credit bureau probably didnt follow up with the court because most courts dont verify bankruptcies for credit bureaus. If youre persistent enough, you may get a court clerk to write a letter stating this.
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Review Your Credit Report
To dispute anything on your credit report, you must review your credit report. Grab your free copy here, and go over your report carefully.
Look for errors in the bankruptcy listing. Were talking about anything incorrect dates, payment amounts, outstanding balance, original balance, or even a misspelled name or wrong account number.
Professional Help From A Credit Repair Company
Any time you try to dispute a negative item on your credit report, whether its a bankruptcy or a credit card late payment, its bound to be a long, arduous journey.
To save yourself a major headache, consider hiring a professional credit repair company. Theyll not only review your bankruptcy entries, but everything else on your credit report as well, so you can benefit from a holistic strategy for repairing your credit.
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How Can I Rebuild My Credit After Bankruptcy
The most important thing you can do to improve your credit score after a bankruptcy is remove the bankruptcy from your credit report.
Equally important is learning and changing your personal finance habits so that it doesnt happen again. This might involve reviewing your income and expenses or building your emergency fund to prevent future financial hardships.
The most important ongoing habit you can begin is to pay all of your bills on time because your payment history accounts for the largest portion of your credit score. Even a single 30-day late payment can cause a significant dip, so imagine how bad it could be if you regularly miss a payment.
Your other best bet for rebuilding your credit after bankruptcy is to avoid accruing new debt.
Depending on the type of bankruptcy filing, you probably had much of your debt discharged. So even though the bankruptcy itself is a major negative item on your credit report, consider the rest a blank slate.
Avoid racking up additional debt because that also has a significant impact on your credit score.
You may also want to get a secured credit card. Its a credit card designed for people who want to rebuild their credit. The credit card issuer will give you a credit limit based on the security deposit you pay upfront. By making monthly payments on time, you can start to rebuild your credit immediately.
Check The Credit Reports For Errors
The most important step in removing a bankruptcy from your credit report is to scan your credit reports closely and look for errors. If you find a mistake on a report relating to a bankruptcy, the credit bureau may be willing to remove the bankruptcy altogether.
First, obtain a copy of each of your credit reports from the three credit bureaus. Next, read each report carefully and look for errors. Common errors you may find on a credit report include:
- Identity errors: Errors in personal information, contact information, spelling, etc.
- Balance errors: Errors in the balance amount or credit limit
- Duplication errors: Errors in how many times a creditor reports a debt
- Account errors: Errors regarding your payment history, the status of your accounts, timely payments, charge-offs, etc.
If you find any of these errors relating to your bankruptcy filings, you can present them to the creditor and request that they remove the bankruptcy from your credit report.
Tip: Using a credit monitoring service is an excellent way to stay on top of your credit reports and to identify errors as they occur. If you do not currently work with a monitoring service, you may want to consider doing so as you attempt to rebuild your credit score after a bankruptcy. Many of these services offer a free credit consultation and personalized credit advice.
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