Many people considering bankruptcy hesitate for fear of damaging their credit scores. The real impact of bankruptcy on your credit score may surprise you. Credits scores often improve an average of 80 points immediately after bankruptcy. But why? A credit score is composed of 35% payment history; 30% amounts owed; 15% length of credit history; 10% new credit; and 10% credit mix. Bankruptcy erases the “30% amounts owed” category by virtue of your discharge order in bankruptcy. That’s the simple answer as to why your credit score increases. If you do file for bankruptcy, it’s not the end of your financial
The Verdict John Stumpf artifically boosted the value of Wells Fargo stock by illegally, and fraudulently creating as many as 2 million unauthorized accounts and instead of going to jail – he is rewarded with a golden parachute, approximately $120 million for his ill-gotten gains. White Collar Crime The real question is why Wells Fargo’s John Stumpf has not been prosecuted for white collar crime? And the sad consequence of not prosecuting this behavior means that this criminal mischief will continue to occur in the future. The Solution Prosecutors need to cultivate some chutzpah; some nerve; some audacity and prosecute
Credit reports should be checked 30 to 60 days after bankruptcy to ensure that creditors are reporting accurately. Creditors frequently fail to report an updated status for discharged accounts. All debts discharged in bankruptcy should show a zero balance (“$0.00”). Boost Your Credit Score – Remove Negative Tradelines The following negative descriptions should not appear in your credit report after bankruptcy: Charge-off reported after the discharge in bankruptcy is inaccurate. Delinquency reported after the discharge in bankruptcy is inaccurate. Any balance other than “$0.00” reported after the discharge in bankruptcy is inaccurate. Any late notation reported after the
How to dispute incorrect information in your credit report? Disputing incorrect information with the Credit Bureaus is the first step towards fixing errors in your credit report. Credit reporting is governed primarily by the Fair Credit Reporting Act (“FCRA”). The FCRA requires that you dispute inaccurate information with the credit bureaus BEFORE you can sue BIG BAD BANK for destroying your credit score. It’s almost like the BIG BAD BANK gets a “Get out of Jail FREE Card,” in the
How To Get Your Free Credit Reports 1. Fill-out the attached form and send it to the address indicated in the form: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281 2. Call 1-877-FACT-ACT (877-322-8228) and ask for the three (3) credit reports: Equifax, Experian, and TransUnion. 3. Do both: send the and also make the telephone call. 4. Do not get the reports on the Internet. 5. Do not get the reports through other companies, for example, your bank or a credit monitoring service.
You can take a few simple steps to make sure that your credit report is accurate. The six steps discussed below will help you cope with a bad credit report. 1. Correct any errors on your report. It is common to find that there is incorrect information in your credit file. You have the legal right to correct this information and should do so. Accurate damaging information is bad enough. You do not also need inaccurate damaging entries. You should send a written dispute to each credit bureau that has reported incorrect information. The credit bureau by law must investigate the