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Credit repair is important in Minnesota. Your credit score affects all of your financing expenses. A poor credit score can cost you hundreds of dollars in higher interest payments every month. In cat we can help you improve your credit score usually in 45 to 60 days. An important part of financial stability is how to repair credit to maintain the highest credit score possible especially in Minnesota.

Chapter 7 bankruptcy

Repair Credit 4 Ways Bankruptcy Can Help You
While filing for bankruptcy may not be the ideal, there are ways doing so can help you.

Eliminate certain debts. Bankruptcy may allow you to wipe out unsecured debts, and some taxes. Student loans typically cannot be discharged, except in cases of extreme hardship. Secured debts, like car loans or mortgages (not including certain underwater mortgages) are not eliminated, however, past due payments may be restructured to let the borrower catch up.

Stop aggressive debt collectors. When you file, you become protected by the “automatic stay,” which stops most collection actions against you. This can give you breathing room while you get back on your feet.

Avoid taxes on canceled debt. If you don’t pay back some of your debt, the creditor may be required to send you a 1099-C reporting this “cancelled” debt as income. This can result in a tax headache for you in future years. But debts discharged in bankruptcy are not considered taxable income, so it’s one less thing you have to worry about.

Allow you to keep protected property. Most of the time, savings in your qualified retirement plans are safe from creditors. In addition, in every state there is a list of exemptions — property you get to keep. There are also federal exemptions you may be able to choose in certain states..
Can credit repair help you in Minnesota to achieve financial stability? Bankruptcy Removal 1. Check your credit report for inaccuracies on the bankruptcy entry

In this step you’ll need a copy of all 3 of your credit reports. This is where having a credit monitoring service comes in handy. The first thing you’ll want to do is look over the bankruptcy entry on your credit reports very closely. What you’re looking for is anything that’s inaccurate. If you find inaccuracies, then promptly dispute the bankruptcy entry with the credit bureaus.

The best case scenario is that they’ll be unable to verify the bankruptcy and remove it from your credit report. This is unlikely if it’s a recent bankruptcy. Nonetheless, if it happens, then great, you can skip the other steps. If the bankruptcy is verified by the credit bureaus continue to the next step.

2. Send a procedural request letter to the credit bureaus

If the bankruptcy is verified by the credit bureaus, you will next need to send them a procedural request letter asking them who they verified the bankruptcy with. The best way to write a procedural request letter is to use my sample letter here.

More than likely the credit bureaus will respond and claim that they verified it with the courts. This is more than likely not true, because in most cases it’s my understanding that the courts do not verify bankruptcies for the credit bureaus.

3. Ask the specified courts how they verified the bankruptcy

Next, as you might have guessed, you will need to contact the courts that were specified by the credit bureaus. Ask them how they went about verifying the bankruptcy. They will probably say they didn’t verify anything. Ask for that statement in writing. After you receive the letter, mail it to the credit bureaus and demand that they immediately remove the bankruptcy as they knowingly provided false information and therefore are in violation of the Fair Credit Reporting Act. If all goes well, the bankruptcy will be removed.

Again, this process can be extremely difficult and time consuming, and there is no guarantee that it will even work. The nonetheless, it might be worth a try if you’re up for it.
Credit Repair