Credit Repair Tips
Bankruptcy Tips: Brief Synopsis
- Bankruptcies are the ‘holy grail’ of credit repair.
- Excellent court reporting makes bankruptcies hard to remove.
- Individual items causing a bankruptcy are much easier to remove.
Bankruptcy Tips: Full Explanation
In the world of credit repair, we attempt to remove items of all types. Of the many different items which can populate your credit report, bankruptcy is the most challenging. Some even call removing a bankruptcy the ‘holy grail’ of the credit repair world. Believe me, it has earned its title! This does not mean, however, that bankruptcies are completely impossible to get off. it simply means that they are comparatively much more difficult, and have a much lower success rate.
With that disclaimer aside, let’s delve into the process of removing a bankruptcy, and why it is so difficult. Many derogatory items are managed by individual creditors, large corporations who make many mistakes. However, bankruptcies are the domain of the government. Despite the reputation of big bureaucracy, the government actually does a very good job of keeping accurate records regarding bankruptcies. Most (although not all) courts are good at the accuracy and verifiability of their bankruptcies. To remove a bankruptcy, you would generally need to be one of the lucky exceptions – where certain information cannot be verified or is not accurate.
However, it is significantly easier to get the constituent parts of a bankruptcy removed on their own. You must remember, a bankruptcy is usually caused because of a mountain of debt. These individual debts are reporting to your credit report, in addition to the bankruptcy itself. Those items will often be inaccurate and the creditors will often be less diligent about verifying the data. Removing these smaller items (such as collection accounts) will improve your score – even if you can’t get the bankruptcy off.