Learn the Truth About How Bankruptcy Can Affect Your Credit Report

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- bankruptcy, also known as a “reorganization bankruptcy.” Chapter 7 will allow you to discharge your debt, while Chapter- 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.

A person who has filed bankruptcy will be considered a potential financial liability by any company that issues credit. Because of this, repairing your credit score is one strategy to consider.

Instead of waiting 10 years for the bankruptcy to clear from your credit report, you can take definitive action. Credit repair allows you to rebuild your credit score more quickly, become eligible for new loans in less time, and become credit worthy faster.

Rebuild Your Credit Legally

It IS legal to contest inaccurate information contained on your credit report. The Fair Credit Reporting Act (FCRA) allows you to contest any information which, in your opinion, is inaccurate.

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

If this sounds like a solution you are interested in, you could benefit from expert advice and assistance. The legal professionals at Lexington Law have the tools and experience to help you. Consider Lexington Law when it comes to deleting negative entries from your credit report.

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

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