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?
Filing for bankruptcy will stop creditors from trying to collect the debts you owe, but WILL NOT give you a clean financial slate. Bankruptcy will seriously affect your credit report and credit worthiness. Consequently, obtaining a loan or line of credit in the future will be extremely difficult.
When you file bankruptcy, your credit score will plunge by hundreds of points. This same bankruptcy will remain on your credit report for 10 years, unless you try to remove it. One option to consider is rebuilding your credit score. This, however, is difficult at best when no one is interested in offering credit to you.
A credit company will most likely deem a person with a bankruptcy on their credit report as a possible financial liability. In light of this, you might want to consider repairing your credit score.
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
There is a legal route to challenging information on your credit report. If you believe any entry on your credit report is inaccurate, the Fair Credit Reporting Act (FCRA) allows you to contest this information.
If you send a dispute letter to a creditor or credit bureau, the disputed entry must be investigated and verified within a specific timeframe. Subsequently, the negative entry must be deleted in its entirety if it cannot be verified.
If you are interested in pursuing this avenue of credit repair, expert advice and assistance can be invaluable. The legal professionals at Lexington Law can assist you with removing erroneous entries from your credit report and can guide you through the process. - 31385
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?
Filing for bankruptcy will stop creditors from trying to collect the debts you owe, but WILL NOT give you a clean financial slate. Bankruptcy will seriously affect your credit report and credit worthiness. Consequently, obtaining a loan or line of credit in the future will be extremely difficult.
When you file bankruptcy, your credit score will plunge by hundreds of points. This same bankruptcy will remain on your credit report for 10 years, unless you try to remove it. One option to consider is rebuilding your credit score. This, however, is difficult at best when no one is interested in offering credit to you.
A credit company will most likely deem a person with a bankruptcy on their credit report as a possible financial liability. In light of this, you might want to consider repairing your credit score.
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
There is a legal route to challenging information on your credit report. If you believe any entry on your credit report is inaccurate, the Fair Credit Reporting Act (FCRA) allows you to contest this information.
If you send a dispute letter to a creditor or credit bureau, the disputed entry must be investigated and verified within a specific timeframe. Subsequently, the negative entry must be deleted in its entirety if it cannot be verified.
If you are interested in pursuing this avenue of credit repair, expert advice and assistance can be invaluable. The legal professionals at Lexington Law can assist you with removing erroneous entries from your credit report and can guide you through the process. - 31385
About the Author:
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