I bet you’re wondering what does credit repair have to do with bankruptcy. Like most you may have the assumption that after bankruptcy there is not much you can do with your credit for seven to 10 years, or that your bankruptcy wiped your credit reports clean leaving no need for credit repair. Well, sorry to tell you that’s not correct. Actually, credit repair is a very important part of post-bankruptcy restoration. Actually credit reports are full of errors after bankruptcy leaving credit repair as a very valuable tool in restoring your credit file after bankruptcy. Bankruptcy doesn’t have to cripple you credit wise for the seven to 10 years you may think. Actually you can use credit repair to recover from a bankruptcy in as little as a year.Credit Repair, Bankruptcy Code, Fair Credit Reporting Act (FCRA) and Fair Debt Collections Act (FDCPA)
When it comes to credit repair and bankruptcy, you have bankruptcy law the FCRA and FDCPA on your side. Let me explain: After your bankruptcy discharges the above mentioned laws are very specific about the way the accounts included in your bankruptcy should be reporting and displayed on your credit reports.
Basically federal law states that accounts included in a bankruptcy should only display the account name account number and the status or comment of included in bankruptcy. Other information such as dates, payment history, balances, or credit limits are not to be displayed as they either violate federal law or are considered an attempt to collect a debt that had been discharged in bankruptcy. With that being said credit repair is a very powerful tool that needs to be implemented in restoring your credit after bankruptcy.
Credit Repair steps after bankruptcy
Now it’s time to apply what we have just learned about credit repair and bankruptcy. Credit repair after bankruptcy involves a couple of key steps. First you want to get your credit reports from the three major credit bureaus (Experian, Equifax and Transunion). Now you want to locate all the accounts on your credit reports that were included in your bankruptcy. I recommend that you take your schedule D from your bankruptcy papers and use that as a guide.
Be aware you are going to find accounts that were included in your bankruptcy that are still showing as open and active or not reporting that they were included in your bankruptcy at all. Also keep in mind as I stated above the accounts that were in your bankruptcy should only be displaying the account name, account number and that status or comment of included in bankruptcy. Any other information displayed violates federal law.
Great, so you have reviewed your reports and they are all marked up with errors, what now? You next step is to begin the credit report process by disputing the accounts with the credit bureaus requesting the accounts be deleted from your credit reports.
Credit Repair disputing tips:
1. Always ask for deletions (there is a right and wrong way to dispute)
2. Never give proof (you just verified the account is actually yours).
3. Never dispute online
Hope this helps!