Learn More 1: The origin of the word bankruptcy is the ancient Latin bancus (a bench, table, or bank) and ruptus (broken).
According to the records, consumers who successfully cleansed their credit report denied a bankruptcy or judgment a second and even a third time before it was cleared. So never get discouraged! Patience and determination may be the two most crucial factors in repairing a damaged credit report.
Do you know the reason why? It is basic! When you dispute an older account or item that is currently charged off, the creditor is less concerned about the account. Even they may be unable to locate the necessary evidence to support the claim.
Therefore, bankruptcy is a legal petition that releases a debtor from responsibility for some or all of their debts due to inability to pay. Credit history or credit report, whichever term you prefer, is the account of a person's or business's past borrowing and repayment. You are aware that this file also contains information about late payments and bankruptcy.
The bankruptcy court has jurisdiction over the bankruptcy process.
By eliminating the majority of debts, bankruptcy grants the unfortunate debtor an honest and """"new start"""" in financial life. It also permits creditors to recover a portion of their debt.
A bankruptcy case begins with the legal submission of a petition containing the debtor's financial information.
How well this will work for you depends on your perseverance...
However, you must be aware that some objects are simpler to remove than others.
A married couple may submit a petition jointly.
Here is a list of older items that are simpler to dispute and have removed:
† Discharged bankruptcy
† Chargebacks
* Inquiries
* Repossessions
* Late payments
* Accounts that were past due but have been settled
Liquidation and reorganization are two frequent types of insolvency.
Some scholars continue to believe that the term bankruptcy derives from the Italian banco rotto, which means shattered bank.
And a list of items that are more difficult to dispute:
* Accounts due at present
* Recent insolvency
* Judgments
* Federal and State Tax Liens
† Current account balances
Fact 5: In liquidation bankruptcy, the debtor's non-exempt (i.e., legally unprotected) assets/possessions/properties are distributed in accordance with creditor claims.
These are the items that are more challenging, as creditors keep note of them in their active files and expect payment. This is why they will find it simpler to verify the information and retain the item on your credit report. However, it never hurts to attempt.
In reorganization bankruptcy, the debtor reorganizes and redistributes assets and outstanding debts.
It is perfectly lawful for you to dispute items on your credit report, even if you know they are accurate. When you do so, you are merely attempting to determine whether your creditors have kept adequate records to verify the dispute. Your excuse could be a terrible memory that causes you to forget that the negative accounts on your credit report are actually yours... and if they are unable to validate your dispute, it must be removed from your credit report, according to the law!!
In the years 1557, 1560, 1575, and 1596, Philip II of Spain declared four instances of state bankruptcy. Thus, historically, Spain was the first sovereign nation to declare bankruptcy.
Elimination of Negative Credit
Identify the negative elements you wish to eliminate first.
After reviewing your updated credit file and having the majority of negative items removed, you can then focus on establishing a positive credit profile. Positive information will always outweigh any negative items that may still be present in your file.
The law of the United States provides only one chapter for liquidation bankruptcy (chapter 7); all other chapters are reserved for reorganization bankruptcy (chapters 9, 11, 12, and 13).
Thirdly, as you already know, if the dispute is submitted by someone other than yourself, it raises a variety of Red Flags. As they make so many errors themselves, they believe you are working alone to correct a legitimate legal error.
If there is a negative item on your credit report, such as a bankruptcy, charge-off, or collection account, simply indicate that this is NOT your account and that you want it removed promptly.
If the creditor is able to provide the written evidence you requested, offer to resolve the debt for 10 cents on the dollar if you have the funds. Therefore, if you owe $1,000, you should offer the creditor $100. Tell them that if they refuse, you will file for bankruptcy and they will receive nothing. This will undoubtedly encourage them to negotiate with you.
""""Bankruptcy is a legal proceeding in which you place your money in your pants and give your coat to your creditors. """" "" — Joey Adams""
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