After Bankruptcy 4. – Check your credit
Posted on February 29, 2008
Filed Under Advice, Bad Credit, Bankruptcy | 1 Comment
You’re entitled to a free copy of your credit report once every 12 months from each of the three national credit bureaus – Experian, Equifax and TransUnion.
Under those circumstances, if you dispute an item on your credit report, the credit bureau has to complete its investigation in no later than 45 days.
The length of the dispute process is different if you’ve been denied credit and dispute an item in your report. In that case, credit bureaus must investigate the disputed items within 30 days unless they consider your dispute “frivolous,” according to the Federal Trade Commission.
The 30-day period may be extended by 15 days if the credit bureau receives information that’s relevant to its investigation.
Make sure there aren’t accounts that don’t belong to you and that accounts you’ve closed aren’t being reported as open.
Check to see that all loans that have been paid in full are noted as such on your credit reports and show that they are no longer open credit lines.
“After a bankruptcy, wait about two months after receiving your discharge before contacting the agencies [credit bureaus] to give them a chance to update your information,” said Carolyn Chesnutt, an Addison bankruptcy attorney.
Write a letter to each credit bureau and include copies of court documents showing that your debts were discharged in the bankruptcy.
Ask the credit bureau to update your credit report to reflect the discharge information.
“Most bankruptcies are allowed to be reported on your credit report up to 10 years, but you can still re-establish and strengthen your credit rating by careful diligent actions,” Ms. Chesnutt said.
You have the right to include a paragraph in your credit report explaining the circumstances that led to your bankruptcy.
“This is a good idea, as it will show potential lenders that you are not really a criminal or a deadbeat, but a responsible and hardworking individual who suffered an unavoidable economic setback,” Ms. Chesnutt said.
by Pamela Yip
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