Bankruptcy Credit Report:

A credit report is a report that shows the past transactions regarding the debts and the payments of those debts. Bankruptcy is a very serious situation and leaves severe negative impacts on the credit report of an individual person or a business entity. A credit report actually shows the ability of a person to repay his debts and when a person suffers bankruptcy, it actually means that the person is not able to pay his debts at all and this leaves serious negative impacts on the credit report of that person.

A bankruptcy is normally reflected for 10 years in the credit report of a person. However, if the person dismisses his case of bankruptcy himself, it may increase the creditworthiness of that person.

After bankruptcy, the bankruptcy court issues a discharge certificate to the person being declared bankrupt. This discharge certificate actually refers to the fact that all the debts of the person have been settled and the person does not have any unsettled debts that he has to pay. This very fact issued by the bankruptcy court in the form of a discharge certificate should be properly incorporated in the credit report of the person being declared bankrupt. The incorporation of this fact in the credit report should make balances of all the creditors in the person’s credit report zero, which means that the person don not have any obligations towards his creditors and he owes nothing to them in regards of their previous debts.

It is advisable for the person, who is being declared bankrupt, that he makes sure that his bankruptcy is properly incorporated in his credit report and that his credit report gives a true and fair meaning of his financial position as a whole. For this purpose, the person, being declared bankrupt, should do the following things:

• The person, being declared bankrupt, should get a copy of his current credit report. This could be done online on internet as most credit reporting agencies offer this service to their clients.
• The person, who has filed a petition for bankruptcy, should send a letter to the credit rating agencies telling them about his bankruptcy and the details of the bankruptcy like the case number of his bankruptcy in the bankruptcy court and the details of all the creditors who have been discharged under bankruptcy.
• The last thing that person, being declared bankrupt, should do is to review the response of the credit rating agencies regarding his letter. The person should make sure that desired changes have been made in his credit report and if not made, then the person should consult a bankruptcy lawyer in order to get those changes incorporated in his credit report.

Different creditors interpret a credit report in various different ways, so this perception is absolutely wrong that a person who has been declared bankrupt can never take credit from any creditor. Whether the person being declared bankrupt will get the credit in future or not merely depends on the interpretations of the creditors of the credit report of that person.

This is an Original Article written by the DefeatBankruptcy.org Staff
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