How to Remove A Bankruptcy

Dealing with bankruptcy is tough, but you are not alone. Bankruptcy comes with consequences, as far as your credit is concerned, and even after it has been discharged, you will have some work to do. How do you repair your credit after bankruptcy? What do you need to know?

The length of time depends on the type of bankruptcy. A Chapter 13 bankruptcy will be on your report for 7 years while a Chapter 7 bankruptcy will be on your report for 10 years. However, there is a way to get a bankruptcy removed from your credit report before the 7 or 10 years and you can still get credit.

Waiting a few years to get credit may be too much for some people, especially because even after you qualify for credit you will have to pay crazy interest rates. Instead of waiting too long and paying ridiculous rates, work to reduce the negative effects of your bankruptcy. You will be able to repair your credit and receive great credit offers.

A bankruptcy on your credit report can damage your credit score in a huge way. It will take 130–150 points from your FICO if you have a score of 680 and 220–240 points if your credit score is 780. This drop will, most likely, cause creditors to decline your credit applications and if you qualify, they will charge high interest rates. Moreover, the amount you can borrow will be limited. Even when filing for bankruptcy is your best option, you need to be aware of the implications.

The first and most important step would be to remove the bankruptcy from your credit report. Another important thing is assessing and changing your financial habits, so you never have to file for bankruptcy again. Check your income and expenses and put something into your emergency fund. One habit you really need to cultivate is the habit of paying your bills on time. Your payment history is the biggest determinant of your credit score. As you strive to repair your credit, do not accrue new debt.

At least, filing for bankruptcy gets most of your debt discharged. Credit bureaus will have you thinking it is not possible; but you can get a bankruptcy removed. If you file a dispute concerning your bankruptcy, file three different disputes with all three bureaus. They are separate companies and you cannot file one and expect it to apply to them all. In your dispute, state the facts and do not…