Bankruptcy Information - What you need to know

Something to think about

Let's say you have filed for bankruptcy, and 7-10 years (the length of time bankruptcies can stay on your report) have passed, and your bankruptcy is now off your credit report. Or, less time has passed because you've hired a legitimate credit restoration company to assist you in having your bankruptcy removed. You now feel you have a clean slate and a new start.

Then, you apply for a loan at a bank. One of the questions on the application asks if you have ever filed for bankruptcy? At the bottom you sign a statement that everything you have written on the application is correct. The truth is, you are never completely free of a bankruptcy. Make these facts a consideration before you decide to file.

Alternatives to Bankruptcy

1) Contact your creditors and ask for their cooperation. Try to work out payment arrangements. If you are buried in credit card debt, explain the situation, and ask the lender to temporarily reduce your minimum monthly payment or waive late charges and extend the payment.

2) Consumer Credit Counseling Service, or CCCS is a nonprofit debt counseling service that assists consumers who are over their heads in debt. CCCS is funded and controlled by the credit grantors and credit bureaus. Often, CCCS provides a beneficial service to the consumer. Because of the obvious allegiance between CCCS and the credit bureaus, you cannot reasonably expect CCCS to do anything that the credit bureaus would frown upon, such as helping you restore your credit. In fact, if you decide to leave CCCS before you have finished their program, they can note your failure to complete the process as a negative listing on your credit report. When you participate in the CCCS program, your creditors will sometimes (though rarely) note it on your credit report. The fact that you resorted to a debt counseling program is a huge red flag for prospective credit grantors. Remember, paying off your debt is a step in the right direction, but it does not restore your credit.

3) Consider selling assets that have a resale value and applying the proceeds to your debt. Sometimes creditors are willing to negotiate balances due.

4) Consolidate outstanding debts into a single loan--possibly through credit card balance transfers and home equity loans.

5) Ask friends and/or relatives to assist you by way of a loan. It's advisable to make it as businesslike as possible by drawing up a contract.

Different states-Different laws

You will need to find out what the bankruptcy laws in your state consist of. The best way to do this is to hire an attorney who specializes in bankruptcy, or look your state's bankruptcy laws up in the library or on the Internet.

Order your credit reports

Your credit reports will give a clear picture of where you are financially and aid you in deciding whether or not to file. They also alert you to any incorrect information or identity theft on your records.

Bankruptcy fraud

Bankruptcy fraud is an important reason to check your credit reports. According to the FTC (Federal Trade Commission) nearly 25 million adults - 11.2 % of the adult population - have been victims of identity fraud. Bankruptcy fraud is one of the types of fraud the FTC investigates. Criminals steal credit cards, max them out, and then file bankruptcy in the victim's name.

If you believe someone has filed for bankruptcy in your name, write to the U.S. Trustee in the region where the bankruptcy was filed. A list of the U.S. Trustee Programs' Regional Offices is available on the UST website, or check the Blue Pages of your phone book under U.S. Government Bankruptcy Administration. In your letter, describe the situation and provide proof of your identity. The U.S. Trustee will make a criminal referral to law enforcement authorities if you provide appropriate documentation to substantiate your claim. You also may want to file a complaint with the U.S. Attorney and/or the FBI in the city where the bankruptcy was filed.

The U.S. Trustee does not provide legal representation, legal advice, or referrals to lawyers. That means you may need to hire an attorney to help convince the bankruptcy court that the filing is fraudulent. The U.S. Trustee does not provide consumers with copies of court documents. You can get them from the bankruptcy clerk's office for a fee.

A way out

There is hope. Thousands of consumers have learned firsthand how legitimate credit repair firms are a money saving solution to their credit history problems. By disputing items that are inaccurate, unverifiable or misleading, legitimate credit repair firms can work to remove bankruptcies from credit reports.

Lexington Law Firm has helped over 200,000 consumers repair their credit reports for over fourteen years. At Lexington, a staff of lawyers is dedicated to creating a fusion of strict regulatory compliance with innovative solutions for repairing credit reports. In 2004 Lexington legally delete 260,000 negative credit items from their customer's credit reports. This number includes an amazing total of 2,801 bankruptcies.

In accordance with federal regulations, Lexington Law Firm charges retroactively for services performed each month, and the consumer may cancel at any time. Lexington's experienced attorneys are ready to provide quality services at affordable rates. So why wait?

Members of the Consumer Advocate Association:

Credit Instructor.com

Learn about the importance of you credit score and credit report, how you can manage your credit report and what you can do to help take care of problems in your credit history. Find out how your credit score affects mortgage rates, how to read your credit report and how your credit history affects your employment opportunities.

Credit Report Dispute.net

You shouldn't be the victim of the bureaus' inability to report correctly. It is unfortunate that you have to take the initiative and make sure all questionable items on your report are correct, but at least the law requires the bureaus to reinvestigate any item you find innacurate, misleading, or unverifiable.

CreditRepairRights.com

Why is credit repair legal? Learn about the laws that enable consumers to ensure their credit reports are accurate and the what you can do about your bad credit.