One of the biggest effects bankruptcy has on your life is how it manipulates your emotions, thoughts and feelings. It can be a depressing time, feeling as if you have failed yourself and your family, though this must be the first hurdle that you should leap over. If you are going to work your way back up, you need to have a positive mindset; there is no benefit in feeling as though you can not make it. Bankruptcy is the bottom, but that is just it; from there, you can only go up, you can only get financially more stable. Take control of your life and your money and put the effort in and you will be rewarded.

You are probably asking yourself now, Ok, I know I am bankrupt, how can I fix it? Well, you need to recover your credit score. That is what is stopping you from taking out loans at good interest rates, so that needs to be your focus from now on.

The record for all your previous fiscal dealings with financial institutions is called your credit rating, or credit score. This is what all lenders will look at when they are deliberating whether to grant you a loan or credit card. It is this that you need to work on to get back to where you were financially. First, spend as much time as you can in front of the computer, searching internet websites for information on improving your credit rating.

This next step may come as a shock, but it is actually the only logical thing to do; you must now borrow some money. Because you are borrowing money and then (hopefully) repaying it, you are showing future financial institutions that you have financial integrity and reliability. Even though the interest rates are likely to be high, try to acquire a credit card or small personal loan and make sure you never miss a requested payment as this will only cause you more problems in the future.

Though the path will be long, you must always concentrate on your final goal of a good credit rating and a clean slate. It may sound funny as the chances are that you can not stop thinking about it, but remember what got you into the bankruptcy situation in the first place as this will persuade you to avoid that state of affairs in the future.

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Essentially how credit repair like this works is you, or attorneys you hire, contest negative marks on your credit report. The Fair Credit Reporting Act gives you the right to dispute anything on your credit report. Once the credit reporting agency contacts the creditor to verify the account they have 30 days to respond with verification. If they do not respond the mark is removed. If they do respond you can challenge again and ask for actual proof.

I do know that it can get to the point where they have to provide signed contracts, a list of all payments and bills, etc. What typically happens is the creditor does not respond and it is removed. The same is true of a bankruptcy, often the court does not get the information to the credit reporting agency so the bankruptcy is removed.

That doesn’t mean they can definitely remove a bankruptcy, or anything else. They may or may not. Obviously if the mark on your credit is not accurate it is a lot easier to have taken care of. I had credit issues caused by id theft that I was unable to do much about, but a credit repair agency quickly removed all the negative items and increased my score over 200 points. I know others who had legitimate bad marks, they seem to be able to get most of them removed but not all.

Of course, this doesn’t remove the actual bankruptcy, or any debts owed. It just removes them from your credit reports.

Any account included in a bankruptcy remains on your personal credit report for a maximum of 7 years from the date the bankruptcy was filed. The bankruptcy itself, listed in the public record information section of a credit report, remains for either 7 years from the filing date if it was a Chapter 13, or 10 years from the filing date if it was a Chapter 7, 11 or 12.

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