It is difficult to rebuild financial health following bankruptcy, but it is not worth the effort. Our clients often ask us how they can improve their credit scores after bankruptcy.
There are some things you should know before filing for bankruptcy. Our experienced team of bankruptcy lawyers will guide you through this process. Can you remove bankruptcy earlier than normal? What you need to understand.
Understanding the Reporting Period
It’s important to know the period of time that bankruptcy appears on your credit report. A Chapter 7 bankruptcy will typically remain on your credit reports for 10 years. Chapter 13 bankruptcy records can last up to 7 or even 8 years. While this situation may appear daunting, proactive measures can help reduce the impact in time.
Monitor Your Credit Reports
Monitor your credit report from the three major credit bureaus – Equifax, Experian, and TransUnion – regularly. Federal law allows you to obtain a free credit report from each bureau annually through AnnualCreditReport.com. You can track your progress in restoring your credit and find any errors by reviewing your reports.
Dispute Inaccurate Information
Take immediate action if you find inaccuracies on your credit report relating to your bankruptcy. You can dispute the information directly with the credit bureaus. Documentation supporting your dispute is required, including bankruptcy discharge papers. Credit bureaus must investigate and correct inaccuracies within 30 days.
Rebuild Your Credit Responsibly
It is important to establish a good credit history before you can begin the process of rebuilding your credit. Consider getting a secured card or credit-builder loans, paying on time, and maintaining a low credit card balance. Your credit score can be improved by demonstrating responsible credit behavior after bankruptcy.
Seek Professional Guidance
We can help you achieve better financial health with the guidance of our experienced bankruptcy attorneys. We can provide insight into strategies that are tailored to your specific situation. We can help you to make informed decisions by understanding the nuances in credit reporting and scoring.
Explore Credit Counseling Services
Credit counseling agencies provide invaluable guidance on managing your budget, managing your debt, and improving credit. Enrolling in an accredited credit counseling program may help you demonstrate your financial responsibility, and improve your creditworthiness.
Patience is the Key
The process of removing bankruptcy from your credit report is a slow one that takes patience. The impact of bankruptcy will decrease as you show responsible financial behavior and time passes. Focus on building up a good credit history and you will reap the benefits in the long run.
This post was written by Trey Wright, an experienced bankruptcy lawyer Jacksonville FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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