Your Credit Report After Bankruptcy-What To Look For

Do you KNOW what is on your credit report? Even if you have just filed bankruptcy it is EXTREMELY important that you KNOW how it is reported on your credit report. It is NOT the credit reporting agencies responsibility to make sure that your credit report is accurate. It is YOURS, and only you can make sure that it is.

After receiving your bankruptcy discharge papers the first thing you will want to do is get a copy of your credit report and make sure that the information reported on it is correct. Did you know that over 90% of the time it is incorrect?
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You wll want to make sure that your report is showing the date the bankruptcy was filed and when it was discharged. Make sure that ALL creditors that you included in the bankruptcy are showing that they were and that your balance is $0 and nothing else. Profit & Loss or Charge Offs will lower your credit score. Make sure they report as "included in bankruptcy" with a $0.00 balance.
Tip! Write to the credit reporting company about the incorrect and inaccurate information. 2.

If a creditor shows any balance other than $0.00 and it was included in the bankruptcy it will lower your credit score. It will by your responsibility to contact the creditor and have them update your credit report to show the correct information. Be prepared, you may need to contact them several times before they get it right. But don't stop until it is.

Did you also know your credit score will go up after a bankruptcy? Why? Because all past due, profit & loss and charge offs will now show a balance of $0 instead of a balance past due.

Did you know that if your credit score is over 500 you can purchase a home and get 100% financing? That's right!! However, you need to realize that you will be paying a premium price in the closing costs and interest rate. If you do some credit repair and wait until the bankruptcy is two years old you can qualify for a Fannie Mae low interest rate loan.

Remember, you are responsible for your own credit report. No one else is going to care about it as much as you. Start working on it now, it's never to late.

Learn how to go from bankruptcy to living a life of financial freedom. At http://www.life-after-bankruptcy.com you will discover step by step how to change your life and finally live debt free and financially free.

Bankruptcy Law and How to Get Your Credit Back

Personal Bankruptcy what is it? Personal Bankruptcy is legal procedures that enables a debtor to for the time being or lastingly avoid paying some of their personal debt unpaid. The US Congress enacted the existing bankruptcy code in 1978, and newly amended it in the spring of 2005.The objective of the legislation is to give relief and structure to those people of society who have gotten themselves so deep into debt they can not possibly pay back. Currently there are 2 forms of bankruptcy that are available for individuals: chapter 13 & chapter 7.
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Will you be able to get credit again? Undoubtedly, the banks have become better at working with people who have filed for personal bankruptcy. You can get a new kind of protected credit card, where a deposit is made to cover the line of credit. This card is the start of the process of credit restoration. Within a couple of years, the banks will start giving you credit again.
Tip! Write to the credit reporting company about the incorrect and inaccurate information. 2.

What about my creditors? You might worry about your creditors harassing you, and if they will ever get off your back. They will! By law all activities against a debtor must end when bankruptcy papers have been filed with the government.

Will anybody know that I filed? Very few people will know that you have filed for Bankruptcy. The file goes into the public record. Credit bureaus will keep a documentation of your filing for 10 years.

Changes made to the bankruptcy laws? The "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" was passed by congress in spring of 2005 and will be effective on October 17th, 2005. The purpose of the act was to force people who have enough money to make some of the payments on their debt make those payments instead than steer clear of the debt all together. The major changes are:
Tip! The most obvious: pay off your debt! This doesn't include a home mortgage, but revolving balances such as credit card debt, a car loan, etc.

Tests are performed to identify the ability of the debtor to pay their debts. The tests are: Is the family earning higher than the average income for their state? If yes, does the family have enough income to pay some or all of their debts?

Debtors wishing to filing for bankruptcy must give the government their most recent tax return.

A minimum 2 year residency is required to take advantage of state exceptions. Counselling: Debtors must have completed a federally approved credit counselling program within the six months prior to filing.

Child support and Alimony payments were moved to first priority when dividing the income.

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