If you’ve gone through a recent bankruptcy, or are wondering
how your credit is going to look if and when you need to
file, the following article should hopefully shed a little
more light on what you will need to do to get your report
pointed in the right direction.
While no derogatory items on your credit report are good,
obviously there exists a hierarchy, or sliding scale of red
flags when a potential creditor looks at your score. One of
the worst things they can see, obviously, is a previous
bankruptcy. For the very same reasons you filed bankruptcy in
the first place, ( more than likely to settle your debts for
a fraction of their high balance ), is the exact reason
that new creditors will be more apprehensive about giving
you credit in the future. No one wants to get stuck with
settling for pennies on the dollar when the lend money, and
regardless of how big and impersonal they may seem on the
outside, that includes your bank!
Now, with that said, there are some advantages as well. Due
to the time limitations that apply to bankruptcy, you are
actually less of a risk to re-file than the average new
credit consumer, so in some cases, you may actually have an
easier time getting new credit than you expect. Also, and of
course depending on the type of bankruptcy you file, you
will have a much “cleaner” slate than most, and after a few
years of maintaining a positive ( even small) credit
history, you will ironically find your FICO score may even
be higher than friends of yours who carry high credit card
balances, yet, have never even had one late payment.
Strange, but very true!
As far as the actual credit repair process, a bankruptcy is
very simply approached in the very same way as any other
negative information, and is disputed using the very same
methodology that would be applied to other items. Often
times, due to the nature of public record information, you
will actually find it easier to find inaccuracies and
erroneous tidbits within the file itself, making these sorts
of records actually EASIER to remove from your credit report
than simple 30 day late credit card accounts.
While your primary concern should always be for your
financial health and wellbeing in the present moment, and a
bankruptcy is not designed to be a pleasing thing, if your
situation warrants it, it can provide a much needed relief
from the financial pressure that you may be feeling. And
again, while you should never approach a bankruptcy from the
standpoint of the ease of removing it from your credit
report later in time, do know that much like the tens of
thousands of other negative items that consumers like you
and I remove from OUR OWN files on a regular basis, a
bankruptcy is no different, and with the appropriate amount
of know how, can be disputed with the very same techniques.
