How to Rebuild Credit After Bankruptcy

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

If bankruptcy is unavoidable 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 will allow you to discharge your debt while Chapter 13 provides a way to repay your debts using a negotiated 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.

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.

Any credit company will view a person with a bankruptcy as a potential financial liability. For this reason you might consider repairing your credit.

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 & be approved for new loans more quickly.

Can I Rebuild My 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.

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

Expert advice can be invaluable if you decide to pursue rebuilding your credit. Lexington Law’s legal professionals can guide & assist you in your attempt to remove negative entries. Consider contacting Lexington Law to get the assistance you need to clean up negative entries on your credit report.

We raised our credit scores from upper 500 range to 745 & 763 in under six months & got approved for our dream home. See proof of our credit repair success at www.creditforcouples.com & get the real truth about lexingtonlaw.com .