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Credit Repair After Bankruptcy

A bankruptcy can be the best way to begin repairing your credit. The first, most important part of repairing credit is to stop negative debt entries on your credit report. The only way to stop negative reports or marks on your credit report is to cure the debt and stop your creditors from reporting negatives on to your credit report. When a debt is discharged in a bankruptcy or completely paid off, no new negative marks should be placed on your credit report. This will stop the string of negatives that are being added on to your credit report on a monthly basis. When you stop the new negative marks on your credit report, you can begin improving your credit score and start getting your credit profile into a positive report.

If you cannot afford to pay off debt that is causing the negative marks on your credit report, the creditor will continue to report negatively on your credit report as regularly as once a month as your payments are due. A negative credit account can report delinquent payments and the amount of unresolved debt. It will continue to stay on your credit report and make new negative marks if the debt is not paid off or resolved in another manner like a discharge in a bankruptcy. A bankruptcy discharge will allow the credit to stop being collected upon. The credit entry will show that the debt has been discharged in a bankruptcy and end continuous negative marks on your credit report. The creditor that owns your debt or is collecting on your debt must legally stop reporting negative marks on your credit if the debt is discharged in a bankruptcy. Essentially, a bankruptcy discharge of your debt is actually a full cure of the whole debt amount which makes the discharged debt no longer collectible in any way. The creditor can no longer sue you in court to get the debt amount and they can no longer contact you to collect the debt. The debt is, by all purposes, completely relieved off your account.

There may be some situations where a creditor will not be cooperative and actually continue to report the debt negatively on your credit report. This activity is actually not legal and it can be corrected by the credit bureau that is reporting the debt negatively. If this happens to you after a bankruptcy discharge, you can contact the credit bureau where you see the negative reporting and let them know that the negative report is not a valid negative report because of your bankruptcy discharge. The credit bureau will investigate the account and remove the negative reports that you do not deserve.

The first step to repairing your credit is to resolve the debt on your credit report. A bankruptcy may be the best option for you to resolve your debt to fix your credit if you cannot afford to pay off the debt amounts that are affecting you.



Bankruptcy Law Professionals is a Southern California bankruptcy law firm taking clients in Los Angeles, Orange County, Riverside County, and San Bernardino County.  We offer free consultations with our attorneys to all of our clients.  Contact us at 855 257-7671 to schedule an appointment.

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