Many people hold out hope that they can clean up their credit after bankruptcy to qualify for a new loan or a major credit card. If you happen to be one of them, beware—a lot of people are looking for you. You’ll be seeing their ads on TV and their mail in your inbox, filled with sweet-sounding promises: Credit repair. Judgments and bankruptcies deleted from your credit report. A brand new credit file based on a different tax identification or social security number.
Do yourself a favor—tune these credit repair companies out. Not only do they promise you the moon, their tactics are almost always illegal and may earn you a huge civil lawsuit.
The truth is, no credit information in your report can be removed if it is accurate. It will take 10 years after bankruptcy before that record disappears. Essentially, these “credit repair” companies are asking you to shell out hundreds or even thousands of dollars to wash your report clean, only to sink without a trace after they get your money. Furthermore, according to the Credit Repair Organizations Act (CROA) you don’t have to pay them a dime until they deliver on these so-called promises.
There are legal (and realistic) ways to restore credit after bankruptcy. Primarily it involves paying off debt and disputing any information that isn’t 100% accurate. If you’ve already hired such a credit repair organization and they have collected money from you, report them to your State Attorney General and Federal Trade Commission.
Remember, creditors and debt collectors routinely report inaccurate information on your credit report after bankruptcy. If they do, there are steps you can take. If your credit report is incorrect after bankruptcy, contact me for a free credit report review.
