Bankruptcy Aftermath: Avoiding Credit Repair Scams After Your Phoenix Bankruptcy

Just when you thought you were done with harassing phone calls and letters from your creditors after emerging from your Arizona bankruptcy, you start to get a new kind of harassing call from credit repair companies.

The companies claim to fix your credit (for a fee, of course) and erase negative entries in one fell swoop. Sounds too good to be true, right? That’s because it is.

The Secret Behind Credit Repair Companies

Credit repair companies tend to prey on people that they feel are in vulnerable financial positions, and that includes people like you who have just come out of bankruptcy. They know that you are worried about your credit, and they use that overwhelming sense of worry that you have been carrying around to lure you in with promises of a better future.

Let’s take a look at their promises, though. These scammers promise an overnight solution to credit problems that took years to build up. They assure you that without their help, you will be unable to get any credit for seven to ten years. They say that they can erase all negative credit entries from your report.

The reality is, however, that they will not be able to deliver on these promises, and the methods that they try are often illegal. Some companies will try to sell you on an Employer Identification Number (EIN), which sets you up as a business with a blank credit score. Others may try to get you a new Social Security number altogether. Both of these methods are illegal.

As far as erasing all of your negative entries on your credit history, the truth is this: you will have negative entries on your credit after your bankruptcy, and if they are truthful, they will remain there for a few years. No amount of harassment from a credit repair company —especially for entries that are there fair and square—will get these entries deleted. Only time and responsible spending will clear your credit history.

Getting a Fresh Start (The Right Way)

You have already taken the first step towards debt relief and financial freedom by successfully completing your bankruptcy—now comes the hard part! We say that lightly, because as you may be finding out, life after bankruptcy is not as bleak as you may have thought. With budgeting, saving, and careful credit use, you can watch as your credit score slowly grows thanks to your dedication and hard work.

If you have questions about your credit score, fixing incorrectly reported information, or just bankruptcy in general, reach out to Curry, Pearson & Wooten’s Phoenix bankruptcy lawyers today at 602-25-1000 to get the answers you need now.

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