Once you have completed the process of Filing Bankruptcy in Roseville and have been granted your discharge you may be under the impression your work is done and for the most part this is true. However there still remains the important task of assuring your credit information is reported correctly and updated with credit reporting agencies. This is an essential component to beginning your renewed financial stability because most of us will eventually need new credit and financing following our bankruptcy discharge.
Reestablishing your creditworthiness, and obtaining new credit and financing can be difficult with old debts that have been discharged still appearing negatively on your credit report. While your creditors are required to keep this information updated and accurate it can be difficult enforcing this on your own and you are well within your rights to take the initiative and update your information yourself with the credit reporting agencies directly.
At Kain & Scott our friendly and helpful team of Roseville Bankruptcy Lawyers would be happy to discuss your specific case and provide you with the guidance and support that is required for your individual needs. We have provided this helpful guide so that you may have some detailed insight into the process.
Correcting Your Credit Report
There are three major credit reporting agencies and the vast majority of smaller services obtain their information from one or two or all three of sources. So first, obtain a copy of your credit report from all three agencies for your review. You may already have recent credit reports from TransUnion, Experian and Equifax from when you began your bankruptcy, however you will still need to obtain new credit reports to compare your prior information now that your creditors have been notified of your discharge. Some if not all of the information should appear correctly at this time. Because of the nature of credit reporting it is likely information may be inaccurate on one or multiple credit reports once you receive them. You will need to correct this information with each individual service. Clearing the matter up with one credit reporting agency does not insure other agencies are reporting information to creditors or employers correctly.
Removing Delinquencies
To understand the importance of repairing your credit you must first understand the general premise of credit scoring. When a debt is reported as delinquent the length of time this item has existed as well as the length of delinquency will figure into the equation, as well as the reported unpaid balance. Bankruptcy itself will affect your credit score but compounding this with ongoing delinquencies can be very damaging. Once a debt which has been included in bankruptcy is reported it will have no scoring attached to it and a notation indicating it was discharged in your bankruptcy will be made part of your credit record. What you don’t want is creditors reporting the delinquent balance and length of time which it has been in default – and that can happen with debts not properly updated following a bankruptcy discharge.
You may report your debts’ inclusion in your bankruptcy and provide your documentation directly to the credit reporting agency and they will ask the creditor to respond to their inquiry within 30 days’ time. Because your creditors are aware of your bankruptcy they will likely not respond to this information request or go ahead and report it correctly on their own behalf rather than in response to the inquiry. If the creditor fails to respond to the information request the record is updated based on the information you have provided.
Establishing New Credit
Assets and property which have been included in your bankruptcy can be particularly detrimental to your financial future if left uncorrected on your credit report. When assets and property are seized these can appear as repossessions or foreclosures with credit reporting agencies. There is often no specific notation indicating whether or not the assets in question were surrendered voluntarily as part of your bankruptcy. To a creditor this is a bright red flag telling the creditor to deny you credit or financing.
Once your credit report has been updated these items will now reflect as being included in your bankruptcy not only removing the derogatory scoring but also demonstrating that you have in fact resolved this financial matter completely. Repairing your credit also means establishing new credit and this is something that must be approached with restraint and logic. It is important not to overextend your finances moving forward and to carefully maintain your financing and lines of credit so that any newly established items being reported will continue to build upon all of the hard work and effort you have already invested up to this point. This process can be daunting and time consuming but your future success is well worth the effort.
Contact A Roseville Bankruptcy Lawyer
At Kain & Scott our professional team of Roseville Bankruptcy Lawyers have helped many individuals who have faced circumstances very similar to your own and we would be honored to help you as well. Contact us today so that we may assist you to the fullest on your way to financial success.
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Kain & Scott, P.A.100 South Fifth Street #1900
Minneapolis, MN 55402
(612) 843-0527
info@kainscott.com
