Lexington Law

Foreclosure and bankruptcy are both daunting—often the last straw after a long financial struggle. When considering your options, it is important to compare the eventualities and weigh the effects carefully. While both will cause undoubted credit score damage, minimizing the fallout is critical. Despite your current situation, avoid giving in to complacency. Include long-term credit repair as a factor in your decision. In addition, consider:

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Credit repair after bankruptcy can be tough, especially with a badly bruised reputation. Despite feelings of defeat, your future stability demands action in the months ahead. Reestablishing yourself as a trustworthy borrower is imperative to improving your credit score. When you’re ready to put the past behind you, begin by making a fresh start. It’s up to you to take control of the credit repair process. Consider the factors below when choosing the right path. They will help you reclaim your footing.

continue reading “Rebuilding Credit After Bankruptcy—Five Effective Ways” »

In 2010, more than 1.5 million Americans filed for bankruptcy. Unfortunately, many bankruptcy attorneys do not adequately explain the effects of bankruptcy to their clients. Put simply, the total financial and emotional costs of filing bankruptcy can almost never be truly quantified. Even the credit score impact alone can be devastating. For example, when you file for bankruptcy, every credit account you decide to include within that bankruptcy will become listed on your credit reports as an “included in bankruptcy” account. Usually, the more of those that appear, the worse your credit score. Additionally, the bankruptcy filing and bankruptcy discharge listings themselves (separate from the “included in bankruptcy” listings) will also appear in the court records section of your credit report. Because so many negative items are attached to one single bankruptcy proceeding, removing all traces of that bankruptcy filing may seem daunting. For that reason, and if at all possible, you should avoid bankruptcy.

continue reading “The Devastating Effects of Bankruptcy” »

A bankruptcy can have a devastating effect your credit score. In fact, for some lenders, a bankruptcy listing on your credit reports is the only thing they need to see in order to determine that you are completely unworthy of credit.

The scary thing is that for a surprising number of Americans, the bankruptcy listed on their credit reports simply should not be there. Read on for helpful tips to weather the post-bankruptcy storm.

So is Bankruptcy Removal Possible?

A bankruptcy listing can remain on your credit reports for up to 10 years. But remember that this period represents only the MAXIMUM (and not the minimum) time frames. In other words, the credit bureaus must automatically remove bankruptcy-related items from your credit reports once the designated time periods have passed.
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