Credit repair can clean up reporting errors on your credit report, reshape the content of your credit, and help you optimize your scores. A good credit repair service may even assist you in building new credit and rehabilitating defaulted debt. But credit repair is not a solution for people who are unable to pay their monthly bills. If you find yourself unable to pay your bills you may consider bankruptcy as an option.
There are a number of requirements you must meet to qualify for a Chapter 7 bankruptcy. If your income is less than the median income for your state you automatically qualify. Median income information is easily found on the web. If your income is over the median you must compute your disposable monthly income, or DMI, to determine if you have enough income to qualify for a Chapter 13 repayment plan.
If you have less than one hundred dollars DMI you qualify for a Chapter 7; if you have over one hundred dollars DMI you must file for a Chapter 13. This is a cursory overview of the qualification process and there are several exceptions that may allow you to file for a Chapter 7 in spite of your DMI. Please consult a bankruptcy attorney.
Your Credit Repair Rights
Should you decide to proceed with a bankruptcy it is essential that you understand your post-bankruptcy credit repair rights. Accounts included in a bankruptcy acquire a new status upon discharge. These accounts should no longer report as collections, or with past due balances. Your liability has been eliminated and these accounts should be cleaned up accordingly.
We Can Help
If you have had a bankruptcy discharged and would like to speak with us about credit repair, please contact us for a free consultation. We will be happy to review your report and help you evaluate your credit repair potential.