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Getting Back Up After A Bankruptcy

By Faye Mergel
Published: Monday, March 15th, 2010

Considering how bad the economy has been during the past couple of years, it is not surprising that a lot of American consumers saw their finances literally evaporate in a span of just a few months. A lot of consumers have had to get loans and rely on their credit cards just to get by. The worst of the lot have had to file for bankruptcy.

Getting Back Up After A BankruptcyFiling for a bankruptcy is the absolute last resort for consumers having financial problems. Bankruptcy filings should be avoided for as long as possible. Bankruptcy is the worst black mark that a consumer can get on his or her credit report. With it in place, securing a loan or a credit card is near impossible. This is why when consumers have gone through bankruptcy, they should do their best to get it removed from their credit report as soon as they can.

When a consumer declares bankruptcy, a report of that bankruptcy is included in their credit report. This is well known among consumers. What is not so well known is the fact that, included with that bankruptcy is a listing of all their previously open accounts. The end result is that the credit report will now show that all the accounts that a consumer used to carry has now been marked as bankrupt.

It is a worrying mess, one which no consumer would want to see on their credit report. Lenders and credit issuers are going to be very wary of credit reports that carry such details as well. With a mess of accounts marked bankrupt in their credit report, consumers will find it next to impossible to secure a loan or be approved for a credit line – both of which are ironically necessities for rebuilding their ruined credit scores.

One thing that consumers can do to try and remove those bankruptcies out of their credit reports. They can do that by having them deleted. It sounds easy enough but the process is quite involved and can take a lot of time and effort. It is, however one of the few practical solutions to get those black marks out of these consumer’s credit reports.

The Fair Credit Reporting Act gives consumers the right to dispute bankruptcies on their credit report. Consumers can therefore challenge the bankruptcies on their various accounts and have them removed. While there is no guarantee that these will indeed be removed, there is at least a small chance of that happening. It is not a good idea to challenge every bankruptcy marked account on the credit report, however. This could be interpreted as frivolous and the dispute may not get the proper attention.

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