The point of bankruptcy is your financial restoration. The bankruptcy discharge helps you breakthrough the past by wiping out certain debts. Your credit report should reflect zero balance on discharged debt. The debt should also not currently delinquent. The payment history before the bankruptcy discharge can still be reported. But going forward, the debts forgiven in bankruptcy should show “account included in bankruptcy.”
Secured debt that is reaffirmed in Chapter 7 should be paid on time religiously after the bankruptcy is filed. This will help improve your credit score. Even though you may want to run from new credit offers, you may want to reconsider. Experts agree that having a variety of types of credit that is paid on time after bankruptcy can raise your credit score faster. Most people are slammed with new credit offers after filing bankruptcy (even before the discharge order is entered.) Taking out one credit card, using it, and paying it off every month should increase your credit score.
Financial restoration after bankruptcy takes some work. Accurate reporting is critical after bankruptcy to improve your credit score. The credit score is very important in the modern economy. Because of this, when you get your discharge order, you will want to take active steps to rebuild your credit. You will need to take affirmative steps to make sure your report is correct.
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Making sure your credit report is correct after bankruptcy.