Bankruptcy question?

Question

my husbands bankruptcy was finalized about 3 yrs ago but theres one thing that is still showing up everytime his credit is reviewed. isnt it supposed to be erased. i mean i know the bankruptcy will show up but the things that were in it are supposed to be erased, right?

Answer 1

Contrary to what a lot of people think, Bankruptcy DOES NOT remove items from a credit report.  Only the normal Credit Reporting period guidelines can do that.

Now, if this item was included in the Discharged Bankruptcy it should show the correct status.  This would be something similar to  "Included in Chapter 7/13 Bankruptcy" and show a 0 balance.  If it shows this(or similar wording) it is correct.  If it shows any other status you need to have your husband dispute the item with the Credit Bureau reporting the information.  They won't remove it, but they will update the status.

Answer 2

That's a good question. It depends on what the terms were when he declared the bankruptcy. Did he use a lawyer to process it or did he do it himself? If he used a legal professional, I'd suggest contacting them.

Was his credit harmed? Or were positive items removed? Obviously if negative ratings were removed, I don't think he'd be too upset about it. =)

If his credit score was lowered, or his credit was negated by what happened, I'd suggest spending some time trying to rebuild the credit. There are tons of websites and eBooks out there on how to build credit. A friend of mine had good luck with an eBook he got from this site: http://bilsmith.niesong.hop.clickbank.ne...

I personally haven't used that eBook, but from what he told me, it was easy to follow and it brought his score up something like 200 points. If that's not an option, you could always try a credit management company. There are companies that will give you a small, secured loan (either with a down payment or an item for collateral) and then let you repay it in increments with a low apr. This way, you can build your credit steadily with a small amount, and since it's a small amount you don't have to worry about getting in over your head.

Good luck, and I hope one of these tips works for you.