CAN MY BANKRUPTCY REFLECT ON MY CREDIT REPORT?
Absolutely. Rest assured that reporting your past bankruptcy on your credit report is not going to change your worthiness with the lenders now. Your present income after filing bankruptcy denotes your worthiness and your old dues and lenders cannot have a claim over your present income. So it’s absolutely a must to reflect your bankruptcy on your credit report. This is valid for 10 years.
In fact people buy houses on mortgage 20 months after filing bankruptcy. Your previous creditors do not have any legal right over your present financial status.
After the discharge, you are entitled under federal law to have the balance of each discharged debt reported as "O". The history of negligence can be reported, but the balance must be zero. In case it is not reported, you can dispute the debt.
People have various reasons for filing bankruptcy. Some have genuine liquidity problem due to business failure and go in for bankruptcy. The law allows it. But after a while you start fresh and your income level improves. Maybe you change your business or model or take on a partner. This has no binding on your previous history. You are free to start fresh again and make savings, apply for loan and mortgage property. All this may take a while. Restoring your credit takes months. There is no any quick fix. If you have decided to restore your own credit, you should know that you will encounter delays. If you need to clean up your credit quickly to secure a loan, you may have to endure a lot of frustration and helplessness as you have been declared bankrupt once. Your credit report shows this and some lenders may worry about it. They may be wary to lend due to your past history. After all everyone wants to be reassured that their money is in safe hands. Don't they? There is a latest system of calculating your credit score with your insurance. Fair Issac & co has developed a product known as the insurance score. The score is calculated by taking information from your credit report, but is not the same as your credit score. It has a similar scoring range (350-900) as the "usual" credit score. Each state has its own requirements for this insurance score. For example: In California the insurer sends a notice to the consumer if credit report has an adverse effect on underwriting decision, whereas in Delaware the law is silent and the changes to the insurance score is pending. Though your bankruptcy on your credit report does not have a grave impact, your repeated attempts to get your credit score pulls your value down.
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