Credit repair strategies after filing for bankruptcy
On Behalf of O’Brien Law Firm, LLC
Posted on: May 9, 2018
People in Mississippi with bankruptcies on their records naturally await the day when their credit reports no longer show their defaults. The Fair Credit Reporting Act allows credit bureaus to report bankruptcies for up to 10 years from the date of filing. Until then, former debtors can take steps to improve their credit ratings and potentially remove bankruptcies from their records.
A certified financial planner said that Chapter 7 bankruptcies remain on record for 10 years, but Chapter 13 cases can come off records after only 7 years. People might have the ability to remove these events from their credit reports if the credit agencies have recorded them inaccurately. To begin, a person would examine credit reports from all three major credit reporting companies. If any errors are present, then the person could dispute the entry. A credit agency’s inability to verify a bankruptcy might enable a person to have the record removed. Another tactic involves contacting the court house where the bankruptcy filing took place. If the court did not verify the bankruptcy for the credit agencies, then it would be an unverified entry. After obtaining a written statement about this, a person could ask the credit bureaus to erase unverified entries.
Whether a bankruptcy remains on record or not, people have the ability to improve their credit ratings by paying bills on time or early. Avoiding new debts could also help people keep their records clean.
A person contemplating bankruptcy may wish to consult an attorney. A legal evaluation of the person’s finances might show that a Chapter 13 filing could pave the way to a fresh financial start. The attorney may help the person create a manageable payment plan that repays creditors at least partially before the court dismisses remaining debts.