If you file for bankruptcy, the result is very bad credit damage for many years, and you cannot get cheap bank loans. Whether you are finding a new job or renting a new house, you will be declined due to the credit check process. Many lenders will immediately decline you if they find bankruptcy on your credit report. But do you know that you can actually dispute and remove a bankruptcy from your records? This can help you qualify for a small 900 dollar loan fast, since we never know when we may need monetary help.
You may have heard that sending a credit report dispute letter to the credit reporting bureaus works for minor derogatory remarks, such as late payments, missed payments for credit card bills. However, under the Fair Credit Reporting Act, all consumers have the rights to dispute negative items recorded against their profile including major ones such as bankruptcies, car repossessions, house foreclosures, IRS tax liens, county court judgments etc. Thus, it is legal to delete a bankruptcy from your credit report by sending a dispute letter.
If you are not comfortable with getting rid of bankruptcy entries, consider hiring a credit report repair lawyer instead. They are familiar with how each agency (Experian, Equifax, Transunion) works as well as your local courthouse. Legal credit repair services can be useful when the bureaus refuse to handle your incorrectly reported bankruptcy dispute in a timely manner.
If you still think there is no way to legally remove a bankruptcy from your credit report, try seeking the professional opinion of a legitimate credit repair attorney. Nowadays, many situations involve a credit check as an indication of your personal credibility, so if you have a bad FICO score after bankruptcy, it can make your life very difficult and restrictive.
When you dispute a item recorded on your credit report, the reporting bureau (Experian, Equifax, Transunion) is responsible for verifying if it is still valid or else they have to be deleted. Thus, if say Experian cannot prove your dispute is invalid within the stipulated 30 days investigation period, they have to erase your bankruptcy item immediately from your report. Note that you do not have to lie or submit a fake dispute letter. There are many legal ways to dispute a bankruptcy without cheating so that you can buy a car after bankruptcy.
Each credit reporting bureau claims to have an effective system to check that each item on your personal report is valid and accurate. However, only they know how true that is, but from the thousands of inaccurate credit reports and disputes made by consumers every day, the truth is pretty clear. There are still grey loopholes in the reporting system of the bureaus.
There are actually so many report errors and disputes each reporting agency are handling everyday. Every transaction is only made electronically with the creditors in question and queries are run against public databases. There are no human intervention involved, so if they do not response at all, your dispute will be successful and you can erase your bankruptcy from credit reports. Furthermore, public records can only be verified in persons at the courts but the reporting bureaus will have insufficient resources to handle such matters.
The entire situation is actually against the credit agencies because if they refuse to delete an invalid bankruptcy item that they themselves cannot verify, they will have to face litigation charges and financial damages in a court of law. The onus is thus for agencies to err on the right side. Some may claim to double check with public records at local courthouses, but there is no way for them to devote the manpower resources to check in person for every credit report dispute.