Step One: Check Your Reports For Errors

First make sure your credit report is correct. The only place to get your free report is from the "central source" at www.annualcreditreport.com or 1-800-FACT ACT. First, check that all accounts discharged in your bankruptcy show zero balances. Credit Reporting Agencies (CRAs) are not required to report all truthful information about you; they are only prohibited from reporting untrue information. Therefore, some accounts may have the notation "included in bankruptcy" while other accounts do not. As long as all of the debts wiped out by your bankruptcy carry zero balances, the information is not false.

Most negative items should only show up on your credit report for seven (7) years, after which time they must be removed. Exceptions include bankruptcies under Chapters 7, 11, or 12, which can remain for 10 years, and tax liens, which can remain for 15 years. A common error is when a "bad debt" is sold to a collection agency or other lender who then reports it as if the 7 years were just beginning. Be aware that paying off a debt is not a reason for it to be removed from your report. But having an item appear on your credit report when it should be removed is an error that can be fixed.