The Short Answer
Credit repair companies are rarely worth the money after bankruptcy — and in most cases, you can do everything they offer on your own for free. The real work is pulling your credit reports from all three bureaus, checking that discharged debts are reported correctly, and disputing any errors directly with creditors and the bureaus. If a creditor refuses to fix an inaccurate entry, your bankruptcy attorney can step in and — if necessary — the creditor can face federal sanctions for violating the discharge order. Save your money and put in a little time instead.
In this age of information it can be tough to discern which tasks we are capable of handling ourselves and which tasks we should leave to the professionals. As bankruptcy lawyers we have clients who contact us on a regular basis and ask if they should hire a credit repair company to rebuild their credit. In short, we don’t think so.
In the case of repairing your credit after bankruptcy, an individual is perfectly capable of resurrecting his or her own credit score. Research is all what it comes down to and having the time to fill out forms and make certain phone calls. Six months after filing, we suggest pulling your credit report from all three credit bureaus: Equifax, Experian and TransUnion (you can pull your credit report for free once a year by going here). You should examine these reports to make sure all debts listed in your petition have been discharged through your bankruptcy. If a credit or collection agency has failed to report correctly, it will be up to you to be your own advocate. First, you should send, in writing, a letter to the creditor stating when you filed bankruptcy, your case number, when you were discharged from all your debt and a request that they correct the entry with all three bureaus. Next, go to the individual credit bureaus websites and determine the process of filing a dispute against the creditor that is not reporting correctly. If the battle continues and you need a legal hand, you should contact your bankruptcy attorney: they should be able to fax over the necessary information to clear up any matter.
If a creditor still fails to accurately report the discharge of your debts to the credit bureaus then they could be sanctioned for violating federal laws. You could also report them to the Federal Trade Commission.
As in everything, it is important to document as you communicate with these companies. Although they are required to document as well, it is nice to have your own personal reference, especially if you are dealing with a difficult or large company. Make sure to stand your ground and know your rights!
Key Takeaways
- Pull your credit reports from Equifax, Experian, and TransUnion about six months after filing to verify all discharged debts are reported correctly.
- If a creditor is reporting a discharged debt inaccurately, send them a written letter with your case number, filing date, and discharge date and request a correction.
- File a dispute directly on each credit bureau's website against any creditor that fails to update their records after you contact them.
- Document every communication with creditors and bureaus in writing — this paper trail matters if the dispute escalates.
- If a creditor still refuses to report accurately, your bankruptcy attorney can intervene, and the creditor may face federal sanctions for violating the discharge injunction.
- Credit repair companies cannot do anything for you after bankruptcy that you cannot do yourself — don't pay for a service you can handle for free.
Attorney Insight
The mistake I see most often is clients paying $50–$100 a month to a credit repair company that sends the exact same dispute letters you could write yourself in 20 minutes. What makes this especially frustrating is that after a bankruptcy discharge, you actually have more legal leverage than the average consumer — creditors who keep reporting a discharged debt as open or delinquent are violating a federal court order, and we can go back to the bankruptcy court to enforce it. No credit repair company has that power; your bankruptcy attorney does. Spend that monthly fee on a secured credit card instead — that's what actually moves the needle on your score.
