You can repair your credit report on your own. Repairing your credit report means updating your information and making sure everything is accurate. You don’t need to pay anyone to do this. All you have to do is to get a copy of your credit report from the 3 main credit-reporting companies. Then, if you find any error you can directly contact the credit-reporting agency involved to file your dispute. Within a certain period of time, any information that you claim to be an error will be removed if the agency fails to verify otherwise.
Bankruptcy will remain on your credit report for up to 10 years. Until the set period is over, there is nothing you or anyone can do to delete that information. Creating a new identity to conceal your bankruptcy is against the law. Usually, bankruptcy credit repair scams like this involve applying for an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number. These companies will proudly claim they are offering legitimate services but nothing can be farther from the truth. Providing false statements in a credit or loan application is a federal crime so is obtaining an EIN with fraudulent intent.
Avoid bankruptcy credit repair scams with common sense. Check with the Better Business Bureau before you start doing business with any bankruptcy credit repair company. Never pay a company in advance for a service not yet rendered. The company should provide you a written contract and inform you of your legal rights.
There are no quick fixes when it comes to bankruptcy credit repair. Some may need the help of a professional. Most often, you can do it by yourself with simple yet effective steps such paying bills promptly. Either way bankruptcy credit repair requires time and a steady commitment on your part.
After your debts are discharged through a bankruptcy process, the credit reporting agencies and your creditors have an affirmative duty to update your information by indicating a zero balance and that the debt was discharged in bankruptcy. This will help your income to debt ratio, a primary component of your FICO score; and will help increase your score. Continuing to make payments in full and on time for any long-term debt that was not discharged (such as a mortgage), or on any reaffirmed debt will also help you quickly restore your credit.
Chapter 13’s work differently. Anything that you acquire while you are in Chapter 13 becomes property of your bankrupt estate, including any new purchases, such as a new car.
Due to the length of time that a Chapter 13 lasts ( 3 to 5 years), it is common for a debtor to need another vehicle during the course of the case. The Court understands that cars wear out, get wrecked, or develop mechanical problems that are too expensive to repair. In such situations, the Chapter 13 Trustee may approve you for a new car as long as you can demonstrate both a need for it, and an ability to pay for it; and there are lenders that work with debtors in bankruptcy.
If you are considering bankruptcy but are worried that your current vehicle will not last the term of your case, please know that purchasing another vehicle is possible. It is much better to purchase one with Trustee permission after you file than try to purchase one on the eve of filing, which can be considered bad faith and draw an objection from the Trustee and the Creditor.
If you are already in a Chapter 13 case and need another vehicle, simply contact your attorney and they will help walk you through the process.