Chapter 7 bankruptcy is a great way for people to liquidate assets and get out of debt. It helps you end collection calls and get back in control of your finances.
There are pros and cons to bankruptcy, but regardless, there is a major question looming: What happens after all is said and done?
Your bankruptcy may appear on your credit for seven years or longer. Don't wait, however, to start asking for its removal from your credit report. You can send a request for reinvestigation through the credit bureau. This request could be sent at eight years, for example, and ask to have the bankruptcy removed from your credit report. Sometimes, bankruptcies don't automatically fall off your credit report, even though they should after that length of time. You can also ask for debts shown as unpaid to be removed from your credit report once the Chapter 7 bankruptcy is complete.
Why is it important to reinvestigate your credit report?
It's important because mistakes can be made. You may see that your credit isn't improving quickly and wonder why. If you look into it, you may find past debts on your report that should have been eliminated. You could also find that there is inaccurate information. Asking the credit bureau to investigate helps eliminate the inaccurate information and could make your credit score increase rapidly.
What can you do if the credit bureau says the information is correct?
You can reach out to your attorney, if you wish, to verify the elimination of particular debts. You can also reach out to individual creditors to ask for a verification that your debts were paid, then submit that information to the credit bureau.