Bankruptcy can be a difficult experience to navigate for the average person. The emotional and financial implications vary, but there is no doubt that there are challenges to overcome – both during and after the proceedings. One of the items which can haunt you after personal bankruptcy is your credit report.
Although it is a given that bankruptcy will affect your credit score for years, it is also true that you can take proactive steps to mitigate the situation.
A significant issue is that after discharge, debts may continue to be reported or listed incorrectly. If these debts wrongfully remain on your report, it does not allow for the clean slate you desire.
Take the following steps to see your credit score cleaned up as quickly as possible, so you can begin to build your credit post-bankruptcy.
- Every Floridian is entitled to an annual copy of their credit report from each national reporting agency, free of charge. A short time after your discharge, you should always check your credit reports to make sure the debt discharge is being reported accurately.
If you have already claimed your free reports, you can also purchase copies directly from the agencies or from 3rd parties.
A word of caution if you use a third party – check the fine print, terms, and possible recurring fees.
- Credit agencies are permitted to reflect your bankruptcy for up to 10 years, while other information (such as delinquent payments) can be reported for up to 7 years.
- Remember that discharged debts should have a zero balance on your credit report. A notation may state that the debt was “included in bankruptcy” or “discharged in bankruptcy.” If debts that have been discharged are shown as having balances or late payments, you’ll want to inform the credit agency of the mistake.
It is likely a timing issue, but you may also wish to confirm that the bankruptcy date and information were filed correctly.
- Now is an excellent time to check and ensure that your credit report doesn’t contain erroneous information, such as someone else’s debt listed on your account. You can request that the credit agency investigate your claim of inaccurate information.
You can make this request via a dispute form. Be prepared to provide copies of relevant documents, such as your discharge order. (keep the originals!)
- In some cases, you may be able to submit a dispute form through the specific agency’s website. The agency is required to look into your claim within 30 days.
If the reported debt source does not verify the listing, it will be removed from your credit report. If it is not, or if the creditor is misrepresenting your debt, you may need to retain a bankruptcy attorney.
A Sarasota area bankruptcy attorney can not only help you to determine if personal bankruptcy is right for you, but can communicate with the courts, help you with the assigned trustee or negotiate with creditors. They can also help you to ensure that your debt is discharged correctly, so that you can move forward with a fresh start.
If you are considering bankruptcy and need to speak with an expert, call Richard V. Ellis Law. With over 5,000 Chapter 7 and Chapter 13 bankruptcy cases over the last three decades, Mr. Ellis has the experience and expertise you need. Call today for a consultation.
