Bankruptcy Background

The bankruptcy system is designed to help overburdened consumers resolve their debt problems and gain a financial fresh start. Over 1.5 million consumers declare bankruptcy each year.

There are two primary types of personal bankruptcy:

• Chapter 7, known as straight bankruptcy, which may involve liquidating all assets that are not exempt.
• Chapter 13, also known as a Wager Earner Plan, is a court approved repayment plan that allows a consumer to pay off a debt(s) during a period of three to five years.

Why is a Bankruptcy Relist (BK Relist™) service needed?

After bankruptcy, many credit reports often retain inaccurate information. In many cases, debts that were discharged and were supposed to have the obligations (amounts due) updated by the creditors and/or the credit bureau(s) are not updated correctly on the consumer’s credit file, which can result in one’s credit being damaged further. Accounts discharged in bankruptcy may also end up being incorrectly reported by collection agencies and Junk Debt Buyers as new negative obligations with balances owing. This misrepresentation of information may further negatively impact the consumer’s life as well as their credit reports and credit score, affecting employment back-ground checks and housing opportunities.

Credit reports and credit scores obtained for evaluation and review

Springboard, a national non-profit consumer credit management organization dedicated to teaching financial literacy, offers a "relisting" service. Consumers need to be aware of the resources that can help them get on the road to financial recovery.

Springboard certified credit counselors will conduct an audit of the credit reports for inaccurate information to determine if the consumer has any “tradelines” (accounts) appearing on their credit reports that indicate erroneous past due balances owing, open charge offs, outstanding collections, and duplicate collections, even though these obligations and their balances were discharged via administrative relief (“bankruptcy”). The derogatory accounts that are not updated have the potential to re-punish the score further, as the public record/bankruptcy itself has already impacted the score.

Bankruptcy Relist can help improve a credit report, even after a bankruptcy filing

Consumers must realize that long after emerging from bankruptcy they may find debts or charge offs remaining on their credit reports, and although they were liquidated and discharged in the bankruptcy process, this is not shown on the credit report making it appear they’ve had “new” bad credit after their bankruptcy. Making these corrections to one’s credit report can go a long way toward reestablishing good credit, and can mean better access to necessary loans for housing, education and other necessities of life.

Springboard Can Help

Obviously, a bankruptcy filing will negatively affect one’s credit, and should only be used as a last resort. We’ll use our expertise to update the credit report legally and legitimately so the credit score is not dinged twice and bankruptcy can be a new beginning.

Call for an appointment today!!!

1-877-Wise-Plan
(1-877-947-3752)

This service not available to residents of the State of Maryland.