Tuesday, 06 April 2010 04:53

How to Erase a Bankruptcy From Your Credit File?

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When a loan provider sees a recent and/or old bankruptcy on your credit file he or she will generally reject your application for new credit. Why? Because they spot notation in your file as a "Warning Sign" and simply stamp a big DENIAL on your application.

Many people today firmly believe that it is not possible to delete a negative mark once its part of your credit file. But the truth is: it's really NOT that clear-cut. However, it's entirely possible to dispute say a bankruptcy using a similar method as you would to voice a difference of opinion and/or dispute a negative mark on your credit file.

Nevertheless, you should keep in mind that if and when a need ever does arise where your circumstances require you dispute a bankruptcy the prime item is whether or not your account which is in question is yours beyond any doubt. Remember that the credit agency by law MUST be able to substantiate this fact completely. If there is some doubt that the account in question is actually somebody elses and NOT yours, then the credt agency is obligated under the law to immediately delete the bankruptcy from their credit file. What's really important is. . .

"The Burden Of Proof Falls Wholly On The Credit Agency"A WORD OF WARNING: When you do communicate with a credit and/or collection agency NEVER lie or try and stretch the truth about you, the information you are offering or any statement that you may provide. Remember that, under law, the "Burden of Proof&quote; falls wholly on the credit agency so there's NO need to be untruthful. Contesting the bankruptcy is truly possible without the need to make-up stories and/or add any additional information.

In most instances, collection and credit agencies generally will NOT harass or investigate the matter further. Why? Because courts have a rule of ONLY verifying records directly with the person. Collection and credit agencies may tell you that they have a foolproof system in place to verify everything about you and your finances but this simply isn't true. Credit and collection agencies are fully aware that if a disputer takes them to court especially if that person is seeking financial reimbursement because they retained the bankruptcy on-record (without actually verifying the disputers account) would create more trouble for them than its actually worth not to mention costing the agency additional time and money.
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