Accounts not included in bankruptcy?
What if a consumer has accounts showing up on their credit report that should have been included in the bankruptcy?
Recently, I had someone ask about accounts showing up on their credit report that was actually included in a bankruptcy. The first thing consumers should do after they freeze their credit report is access their credit report from all of the three repositories. Then determine which accounts are actually being reported outside the bankruptcy that should be included in the bankruptcy per repository.
Then consumers should get a copy of their bankruptcy papers and write a letter to the repositories that say: “This account (and number) is reporting incorrectly it should have been included in the bankruptcy dated (whatever the date was). The bankruptcy papers are attached from the court of (wherever court it was)”
Then send that letter registered mail. Don’t put it in the regular mail, put it in the registered mail because registered mail is treated differently when it reaches the repository.
Then allow 60 days for the information to be updated and pull another credit report to make sure that it’s been corrected. If it hasn’t been removed then consumers can call the repository.
This isn’t some process they should be doing right before mortgage though they need about a year prior to obtaining a mortgage or any large purchase to start working on their credit. If consumers have a bankruptcy in the past they need start attempting to fix their credit two or three years after the bankruptcy monitor your credit closely after your bankruptcy to make sure everything that was included in the bankruptcy is included that way on your credit report.
The best thing to do to quickly recover is to bring one open active account through the bankruptcy. If they had any accounts that was not closed during the bankruptcy, consumers should keep those account open and active.
By doing so, consumers maintain a longer credit history, while the end date gets put on the bankruptcy accounts. Consumer’s scores can improve dramatically, I’ve seen many people have their score bounce back up into the 700 just a few months or years after bankruptcy. Consumers should not give up after a bankruptcy! They should just keep continuing to work to their credit and then make sure that everything that should be reported in the bankruptcy is reported that way in their credit report.
How to handle collections on credit report
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