Bankruptcy - Clearing Your Credit Record

Bankruptcies can remain on your credit file for 7 to 10 years. Does that information get cleaned up automatically, or do you, as a consumer, need to do something? Well, as in everything else in life, if you want the job done correctly, you will need to do it yourself. Yes, it should clear up automatically. But, don’t trust this important step to fate! Don’t pay anyone to do this! You can easily save yourself money and do it yourself! Agencies that offer to “clean up your credit record” for you will simply be following these steps:

You want to clear a bankruptcy off your record, as it could affect your future credit, trying to purchase a home or car, obtaining life insurance, and sometimes even applying for a job. Even creditors who may claim that they will loan money to individuals with a known history of bad credit or bankruptcy may do so at higher rates than others deemed as better credit risks.

There are three things you can do to make sure your credit report is cleared properly: reports, notifications, and waiting. The first step is to obtain a copy of your current credit report. This will provide you with the most current data plus details on all of your debtors. It is very important to review this for accuracy by checking the names of the creditors, the account numbers, etc. In this world of human error there is every chance of something invalid being on the report. Everyone, regardless of credit history, can get a free credit report at annualcreditreport.com. What is pretty funny is that there is a website called freecreditreport.com, where they will charge a nominal fee for the same information! So don’t be fooled.

Pull together some information to send to the three major credit reporting agencies: Experian, Transunion, and Equifax. Never send the originals of this information, only copies. Whatever can go wrong, will, and then it is a hassle to once again obtain an original! They will need a copy of your driver’s license, social security card, bankruptcy discharge notification and debt schedules. They will also need to verify your address, which can be done by enclosing a copy of something rather official such as utility bill stating your correct address. On top of all this is a brief, to-the-point cover letter stating that it’s been 10 years since the bankruptcy, could they please clear this off the record, and refer to the attached, enclosed documentation as proof.

Lastly, wait. Give the process a little time to work, say about 30 days plus 5 days for mailing. During the waiting period do not apply for credit, just give yourself a little time. After about 35 days get another copy of your credit report and see how it looks. Debts from the bankruptcy should be listed with a $0 balance, and nothing about bankruptcy should appear on the report.

Remember, bankruptcy allows you to wipe your slate clean; it’s extremely important to learn from these lessons and not repeat them in the future! Start over, start fresh, and budget. Get some financial advice so you don’t wind up in the same place. You’ll be doing yourself a big favor!

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