If you have had a bankruptcy discharged now is the time to start your credit repair effort. Many people make the mistake of ignoring their credit after bankruptcy believing that there is nothing that can be done to mitigate the damage. This is far from the truth. The potential of credit report repair after bankruptcy is dramatic.
Once an account has been discharged in bankruptcy it enters a new status effectively nullifying its status prior to discharge. This means that much of the derogatory information that was valid prior to discharge is no longer accurate and should be removed with credit repair. A discharged account, for example should not report with a past due balance or in a collection status. All of your accounts should be examined very carefully to make sure that there are no lingering inaccuracies. Every single reporting error can impact your score and should be disputed.
Rebuild for Credit Repair Results
Bankruptcy can leave you without any credit at all. If this is the case, it is important that you start to rebuild now. Given the recent bankruptcy you will not be able to qualify for regular credit cards, but secured cards will be just as effective in helping your score scores recover. Open two secured cards as soon as possible, use them when you get them, and for optimal credit repair results only use 20 percent of the available line.
FCRA and Bankruptcy
There is but a single reference to bankruptcy in the Fair Credit Reporting Act. It is as follows: Sec. 605. Requirements relating to information contained in consumer reports [15 U.S.C. Sec. 1681c] (a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information: (1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years." This 10 year limit sounds discouraging, but in truth the credit bureaus interpret it in the most favorable light as meaning that the bankruptcy itself cannot continue to report for more than 10 years, but there are many cases where they will remove it far in advance.
If you are in our credit repair program we will examine your entire report to insure that there are no issues persisting after your bankruptcy. In addition we will identify all of the credit repair opportunities to rebuild your credit and optimize your scores. You will be surprised how quickly you can recover after bankruptcy.