How To Get Bankruptcies Removed From Credit Report?
Introduction Bankruptcy usually hurts the credit score and getting credit after bankruptcy can be as difficult as combating it. But, there are some actions that a person may take to either expunge a bankruptcy from his credit report or minimize the damage. In this article, the reader will be able to acquaint himself with the process of removal and suppression of bankruptcy, as well as other key activities to begin a new life after declaring bankruptcy.
How Long Does Bankruptcy Take to Be Erased from Your Credit Record This is because the majority of Chapter 7 filers remain for 10 years from the file date in your credit history. Chapter 13 bankruptcy filings appear on credit reports for seven years starting from the filing date. These time limits are observed based on the Fair Credit Reporting Act. After that time it should no longer show on your reports with the three major credit bureau companies namely Experian, Equifax, and Transunion. This is one of those times when you do not have to do anything and the expiration will happen on its own. New filings refer to the occurrence of a new lawsuit for the same case or complaint to be filed by either of the parties in the litigation after 10 years or 7 years. If you file again it would be a new reporting period and that is the reason it is very important to seek the services of an expert to assist in filling this document.
Removing a Bankruptcy Early As we know, bankruptcies do not come off your reports in most circumstances for the required period required by law But there are a few situations where you can have them removed sooner. Here are two options for pursuing an early deletion:
Prove Inaccuracy: While the accounts remain on your credit reports if you see that the information about the bankruptcy is incorrect for some reason – such as the type of bankruptcy or the date of filing – then you can dispute such inaccuracy with each of the bureaus. Copies of paperwork from the time of bankruptcy must be provided to support the claim and its rationale. The credit bureau may remove it if the details cannot be verified by the credit bureau. This works well if you were making filings by mistake or if you are a victim of identity theft or identity confusion.
Negotiate with Creditors: If you contact your creditors directly, you may try to negotiate the removal of the bankruptcy if they agree to take it off your credit record in exchange for you making payments or repaying some of the discharged debts. If it were to take place, the negotiations should be done in writing. But even if you manage to get a hold of a creditor and they say they agree to delete the entry, there is no way of knowing that the credit bureaus will oblige to your request. However, it will not be bad news to try this lever of goodwill deletion.
The following are the strategies that people may adopt so that they may come out of bankruptcy. While early removal can help clean up your credit reports faster, here are some other smart financial moves to rebuild credit after bankruptcy:
Pay All Bills on Time: Punctual repayments are among some of the most influential aspects of credit score. Make sure from this time on you make all the other unsecured payments like credit cards, personal loans, utilities, and rent on time. Failure to make the payment on the due date or late payment can sometimes be prevented by auto payment.
Become an Authorized User: Get someone that you trust, like a friend or a relative who has a good credit score, and request them to include you as an authorized user on their credit card. This enables their credit history to start shifting to positive by making payments that will be reported on their credit reports to offset the bankruptcy.
Get Secured Credit Cards: Secured cards work like ordinary credit cards in that they are reported to credit bureaus; however, they can only be obtained after providing a cash deposit, which is refundable. Employ them wisely to convince your employer you are worthy of another opportunity.
Limit New Credit Applications: Each application can cost you a few points when you are coming out of it or consistently during active use. Don’t apply again for other accounts unless the ones you have borrowed are the most necessary until you see your score rise again.
Monitor Credit Reports Regularly: The three credit reporting agencies are Equifax, Experian, and TransUnion; try to pull reports at least four times per year. Spot mistakes and fraud and report or challenge any wrongdoing within record time.
Conclusion Bankruptcy means your finances are buried in a hole, but if you can wise up on credit and patiently wait, you can again start applying for loans. Although the majority of bankruptcies take a minimum of seven to 10 years to be removed from your credit report, it is possible to talk to your lenders or challenge the credit reporting company and get the negative item removed early if conditions permit. Keep on meeting your bill payments on a timely basis, reducing your credit application, and checking the reports to see the figures regain.
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