Many of our bankruptcy clients not only recuperate their finances, but they actually move on to earn higher credit scores than they ever had before. Almost anybody can do it, so long as you have the right tools and mentors.
Bankruptcy repair lies in your ability to understand how your credit works, and then properly care for it. This is why most consumers see a disconnection between their money and their credit–because they don’t understand how credit really works. So our goal is to help you develop a deeper understanding of how your credit works and then teach you what you can do to rebuild it after bankruptcy.
What is a Credit Report?
Your credit report is like a report card demonstrating your ability to borrow and (successfully) repay money. It provides a complete record of your loans and payment history, including how many loans you have, how many payments you’ve made, and which accounts have been closed. The information from your credit report is then used to determine your credit score, which is like your overall borrowing grade.
Your credit score is used by lenders and creditors to determine if you’re credible enough to trust with a loan – or if you’re too big of a risk. The better your score and the cleaner your report, the more likely you are to get approved for loans, rental properties, credit cards, and sometimes even jobs.
Post-Bankruptcy Credit Report
After your bankruptcy is discharged, a lot of changes are going to take place on your credit report – some good, others bad. But it’s important to make sure that what’s supposed to happen does happen – even the unpleasant parts. This will give you as close to a ‘clean slate’ as possible on your credit report, which will help you to rebuild your report with a much more solid foundation.
Common Post-Bankruptcy Errors
Unfortunately, credit reporting errors happen quite frequently after bankruptcy. Creditors and lenders don’t always communicate or report properly to the credit reporting bureaus (i.e. Equifax), especially after a complex bankruptcy filing.
The most common credit report error after bankruptcy are discharged debts that continue to show up as “negative” or “past-due” accounts are your report. This will continue to pull your score down, which is the opposite of what we want.
Other common post-bankruptcy credit report mistakes include:
- Incorrect information about which chapter you filed,
- Incorrect payment plan information in Chapter 13 cases,
- Reporting a ‘date of last activity’ on a discharged account,
- And more.
How to Get Started
The odds of finding an error on your credit report after a bankruptcy discharge are fairly high but the worst thing you can do is ignore it. You went through a lot of trouble and a lot of work to successfully file bankruptcy so now is the time to make the most of the opportunity.
The Vokshori team will help you to make sense of your credit report, identify any errors, dispute them with the bureaus, and make sure your bankruptcy gives you the fresh start you deserve. For more information, or a free consultation, to start successfully rebuilding your credit after bankruptcy, send us an email or call us today!