Just because you’ve been through a bankruptcy and received a discharge doesn’t mean that those old debts have disappeared from your credit report.

Most of the time, they’re still on your report. And with each passing month, those old debts become more and more derogatory.

Under the law, creditors are supposed to update your accounts to reflect that they were included in your bankruptcy.

So why are they still showing up as derogatory accounts? Simply put, there’s a loophole. There’s no time limit for them to do the update.

As a result, you may find that some of those creditors are taking their sweet time in updating how your account is reported.

Does the term “vindictive” sound familiar?

So let’s go over a few steps that you can take to speed things up and get your financial life back.

At this point, we’re going to work from the following assumptions:

• You’ve just gone through a bankruptcy

• Your bankruptcy has discharged

• You’re ready to clean up your credit report

At this point, we want to give you some further insights and the means to really do something about your credit report.

Bankruptcy usually will destroy even the best of credit ratings. Your score will take a major hit and all those debts that were put into the bankruptcy are still on your credit report.

Each month that passes usually causes those old debts to show even more delinquent than the previous.

First of all, you must realize that it’s not the credit bureau’s fault. Nor is it your lawyer’s fault. No – the fault lies squarely with your creditors.

The good news is: you can actually do something about it.

It really isn’t terribly complicated, but there is a process you need to follow to accomplish your objective.

Will all those old debts “magically” disappear? Nope. So, what’s the point?

The point is this: by simply updating that really ugly credit report and showing that those debts were included in your bankruptcy, you may realize a significant rise in your credit score.

So just how does that reflect in my credit score?

It’s simple. Instead of having a creditor report your account as “delinquent” with a terrible rating, it now will report as “included in bankruptcy” with no rating attached.

Take, for example, the case of a car loan where a car was surrendered in the bankruptcy. It doesn’t matter if it was a voluntary surrender or not – it’s a repossession. And that’s how it gets reported to the credit bureaus.

And just what do you think your chances are of getting another car loan now? Remember, you now have a “repo” in your credit file.

If you guessed “not so hot,” you’re pretty close.

Now, if that same car loan gets reported as “included in bankruptcy” instead of “REPO,” you just improved your chance of getting financing by about 100%.

So, let’s get on with what you need to do in order to get that “fresh start” that the bankruptcy was supposed to give you.

First of all, you will need your bankruptcy papers. It’s that big stack that your lawyer gave you when you filed your bankruptcy.

Find the “Schedule of Creditors.”

You will need 3 copies of this schedule for each person named in your bankruptcy filing.

Now, find your “Letter of Discharge.” Once again, you’ll need 3 copies of this letter for each person named in your bankruptcy filing.

Place a copy of the Discharge on each of the copies of your Schedule of Creditors. You’re going to mail this stack of papers to each of the 3 credit bureaus, along with a cover letter.

The cover letter can be short and sweet. Here’s what we recommend:

Gentlemen:

Please use the enclosed Federal Court Documents to update my credit file.

Sincerely,

That’s all you need. No excess verbiage. And no threats. None of that helps, anyway.

Now, here’s the really good news. The credit bureaus are fanatic about accurately reporting your credit file.

Not that they’re on your side – they are forced to do this by law. And they don’t want the Federal Government crawling up their backsides.

As a result, the credit bureaus will do the work for you. They recognize and accept the court documents and will use them to update your file for you.

Doing this on your own would involve your contacting each and every creditor and then forcing them to update your credit files. Let the credit bureaus do it for you.

After you’ve gotten all these papers together, send each of them to the 3 credit bureaus.

Send it by certified mail with a return receipt.

You want to know that they got there. And you want to know when they got there.

The credit bureaus have 30 days to update your file, so don’t get anxious. Our experience has shown that they usually will send you an updated report, showing all the changes, within 2 to 3 weeks.

Now that you’re armed with what you need, there’s no need for you to endure an ugly credit report any longer.

Credit Bureaus and Their Addresses:

(Note: We recommend that you visit each of these websites to verify current addresses)

Equifax
P.O. Box 740241
Atlanta, GA 30374

www.equifax.com

Experian
P.O. Box 2104
Allen, TX 75013-2104

www.experian.com

TransUnion
P.O. Box 2000
Chester, PA 19022

www.transunion.com

Why, indeed? Some insights into the reasons for filing bankruptcy — presented by an attorney specializing in the practice of bankruptcy.

A local attorney specializing in the practice of bankruptcy was kind enough to provide us with this insightful look into some of the reasons that bankruptcy filings are once again climbing.

Ever been to a third world country? If you have and are perceptive, you will notice that people there don’t have close to the consumer goods we take for granted.

There is a good reason for that — NO CREDIT! If you don’t have the funds you can’t buy — it’s that simple in those places.

As a result, those economies are a fraction of the size of ours.

Without credit, our economy would collapse overnight. No cars would be sold or built, no houses purchased. So, credit has made the U.S. economy. Take it away and we have no economy. Debt is a way of life here.

However, there are drawbacks, including the temptation to live beyond one’s means.

Also, the creation of an extremely materialistic society and excessive rates of interest — once against the law and called usury — now out of control due to greed; moreover, if the creditors are largely foreign controlled corporations there are real hostages to the future with possible consolidation of power in a few banks.

Bankruptcy is the valve on the pressure cooker without which the lid would blow and we would have already had several revolutions by this time, with maybe no economy left in the rubble.

So, in this country, we allow excessive greed in the form of outrageous interest on loans and exorbitant fees for services, but with a pressure valve. That valve is called Bankruptcy.

As a result, the federal government has allowed people to get rid of their entire debt in a legal process called Bankruptcy.

Most commentators state that you must give up your assets in exchange for relief from your debt.

That is misleading. Most people who file bankruptcy give up little or nothing.

Those who have assets they don’t want to give up can file a Chapter 13 bankruptcy and generally make a small monthly token payment and get out of the lion’s shared of their debt.

Others with lower incomes can declare Chapter 7 and get out of their debt by turning over a tax refund or such like.

Many times people struggle for years to try to pay back unreasonable service or credit card debt. Probably, if the truth were known, the debtor has already paid what they originally borrowed.

For instance, that sack of groceries that was charged a year ago has already been paid back two or three times considering the interest.

Many folks don’t use credit cards as an alternative to cash. For most, it’s an expensive way to just make ends meet.

If that’s your case, just get rid of it. Don’t pay for years only to find that when you look at the balance still owed, it has only gone down a few dollars for the hundreds that you have paid.

There is no virtue in continuing to pay on debt you have rightly paid or to pay for services already paid by an insurance company.

Bankruptcy is a legal procedure to rid yourself of all that.

It’s a fact we’ve all encountered at some point. Just trying to arrange that car loan can be bad for your health.

Stressful. Uncomfortable. With a little dose of anxiety thrown in for good measure.

Sound familiar?

That’s how the majority of customers tell us they feel when they get to the point of arranging their auto financing.

Add to this the fact that more than 1 out of 2 people don’t qualify for conventional financing and you have a sure-fire recipe for a really bad day.

Our goal at Fresh Start Indy is to take away that bad experience. No pressure. No hype. Just an honest and straight-forward approach to solving your auto finance needs.

We have resources available that no one else has. And we have a solution for you, whatever your situation.

We invite you to feel free to explore our site — we’ve tried to address most of the questions people ask.

What if you have “less” than a sterling credit rating? You can still get financing. But you can expect to jump through some hoops to get anything approaching decent terms.

From a lender’s perspective, the self-employed seem to fall into two distinct classes. For the person with a sterling credit rating, there aren’t any obstacles. Unless you’ve got a lot of debt. In this case, the lenders will want you to prove your income. This is so you can demonstrate your ability to repay the car loan.

With less than sterling credit, it’s a given that the first priority of the lender is solid proof of your income.

The lenders will want your last 2 years of tax returns. And this sometimes presents a few problems. One of the reasons that people opt for self-employment is so they can take advantage of tax deductions that just aren’t available to employed people.

And that’s where the rub comes in. Whenever you load up your deductions to the point where you’re only claiming a small income, you’re going to experience some real difficulty. The good news is that there are a number of lenders that will take that into account. They will look closely at your deductions and will then count a few of them as income. Not many – but there are a few.

Don’t have 2 years of tax returns? There are a few lenders that will accept your bank statements. Be prepared, though. They will want full statements for the last 6 months. And they will charge you for it. From their perspective, you just fell into a higher risk category.

Now, if you don’t have either of these – your choices will get real limited real fast. And the reason is pretty simple. No tax returns + no bank statements = no business. Their rule, not ours. In their eyes, you’re nothing more than a tax-dodger.

Now that we’ve shared this wonderful news with you – let’s move on. There are a few more items that you’re going to have to provide in addition to proof of your income:

• Proof of your residence (a home phone bill or utility bill – no past dues or cutoff notices)

• A copy of your most recent phone bill (home phones preferred – they want to know they can call you)

• A list of personal references (friends, relatives – they’ll want 10 of them) with full addresses and phones

• Complete landlord information or a copy of your most recent mortgage statement

Knowing up-front what you’re going to need will get you prepared. Once you’ve satisfied all the documentation requirements, the finance process actually will go quite smoothly.

As one last requirement, the lender will call you, personally, for an interview.

This is not the time for you to get an attitude. It will cost you your loan. Simple courtesy goes a long way in establishing a good rapport with your new financial partner. They will document everything – including their impression of you during the interview. This is definitely the time for you to make a good impression.

First of all, there are countless sources that will finance a car loan for you. In general, they are not unsympathetic to your situation. They will generally evaluate each situation individually.

There are countless circumstances that may have brought about the repossession and they will want to know exactly what happened. Was there an illness? Layoff? Family tragedy? Or simply overextended? Any of these, and more, could be contributing factors. They will want to know what happened. Your honesty will play a big part in the type of loan approval you get.

Going into this, understand that their requirements for granting you a loan may be more stringent than you have faced in the past. You should be prepared for the following:

• Be prepared to pay money down
• Expect to provide documentation (proof of your income, residence, etc.)
• Don’t expect a bargain-basement interest rate on your loan

In exchange for their granting you another loan, you have to expect to meet these requirements that may be part of your loan approval.

Following a repossession, it is a typical outcome for the bank or lender to file a claim against you for collecting any deficiency on the loan. If that has happened, and you subsequently filed for bankruptcy, or if your repossession occurred while you were in the process of bankruptcy, the situation is a little different.

In that case, you can probably qualify for some reasonably attractive financing. Since each circumstance is different, contact us and we’ll give you straight answers on what is and isn’t available for you.

Chances are, if you’ve talked to a bank or your local car dealer, you may have gotten some bad news. They’re more than a little reluctant to finance a vehicle when you’ve had a foreclosure. After all, they say, you can’t pay for your house so we sure don’t think you’ll pay for your car.

In the difficult arena known as the mortgage mess we have today, there is one area that we have some good news for you. We have access to lenders that will approve your car loan.

There are a number of these sources that really don’t care about your foreclosure. They only care about how you’re going to pay your car loan.

And the news doesn’t end there – it gets a little better. There are some sources that won’t charge you an interest rate that makes you sick.

So if you’re in the unfortunate situation of having had a foreclosure, we want you to know that yes, we can help.

Although each individual circumstance will differ, you need to know that it is not only possible but fairly easy to get approved for auto financing after a bankruptcy.

A couple of the more common mistakes we see made by people in this situation include:

• Purchasing from a Buy-Here Pay-Here dealer
• Re-affirming an existing auto loan when they are hopelessly upside-down

The Buy-Here Pay-Here Trap

Whenever people rush into this type of financing, they are usually setting themselves up for a bit of a shock. Your state may regulate the interest rates on the loan, but you can bet that the price of the vehicle is not subject to any sort of regulation. That dealer who told you that your contract met the state guidelines may have been telling you the truth.

What he didn’t tell you was that even after making a huge down payment, you are not going to be able to trade that car in. Not until you’ve made the last payment. And the chances are, the car won’t last that long. So if you’re caught in this trap, realize the best thing you can do is get that loan reduced as fast as possible.

You Re-Affirmed

Thinking that you wouldn’t qualify for a new loan, you followed the logic that most people use. You re-affirmed. And now, you owe $20,000 on a vehicle that’s worth $6,000. So just what do you think it will take to trade that vehicle for a new one? If you answered $14,000, you’re close.

Does this mean you’re stuck? Not at all. Remember, each individual circumstance is different. It’s definitely worth your time to check it out. Even though you may find yourself in one of these situations, it may be more than possible to get out of it.

And if you’re in a car loan and your bankruptcy has not discharged, get in touch with us now.

Customers constantly tell us that other car dealers say “We can’t help you while your bankruptcy is still open. Come back when you’ve received your discharge. We might be able to help you then.”

In a lot of ways — they’re right. They really can’t do much. It’s not because it can’t be done — it’s because they don’t know how.

First of all, you need to know that there aren’t any laws that prohibit your getting a car loan while your bankruptcy is still open.

The stumbling block is in finding a source of financing that will offer a loan before a bankruptcy discharge.

There aren’t many lenders that offer these loans. Of the ones that do, they tend to be highly selective in the dealerships that they allow to participate in their programs, requiring special experience and a track record of strong expertise.

This is not your ordinary car loan.

At Fresh Start Indy, we’re pleased to be able to offer you a variety of lenders specializing in this type of loan. For many of these lenders, we’re the only dealership in our area to satisfy their unique & demanding requirements.

Now, let’s get to the point. We work with the two most common types of bankruptcy.

Chapter 7 Bankruptcy

First, there’s the Chapter 7 bankruptcy.

This is the program where you essentially include all debts in your bankruptcy filing and, upon discharge, you are no longer obligated to repay those debts.

In a Chapter 7 bankruptcy it is entirely possible to arrange auto financing prior to the discharge. There is a widespread misconception that the bankruptcy must first be discharged.

Typically, most auto dealers and banks will inform you that you must have a discharge in order to qualify for auto financing.

The reasons behind their statement are usually due to the fact that they are unaware of the financing programs available or they were unable to qualify for these programs.

In the case of the banks telling you to first get a discharge, they usually are using this as a delaying tactic. They’re really not interested.

Over the years, we have built several outstanding relationships with lenders that specialize in making this type of loan. For the most part, these lenders tend to be “exclusive” in that only select dealers are allowed to offer these programs within a given marketplace.

Chapter 13 Bankruptcy

The other type of bankruptcy most commonly encountered is Chapter 13.

This is a debt-repayment plan that is typically set up for a 3 to 5 year period. Obtaining auto financing while in this program is actually quite an easy process.

One of the most common obstacles is the lack of a thorough understanding of the process and procedures that must be followed.

Both Chapter 7 and Chapter 13 auto loans are regulated and monitored by the bankruptcy courts. These areas require a thorough knowledge and understanding of all the rules, regulations and processes that must be followed.

Unfortunately, most auto dealers simply don’t have this expertise.

We specialize in these loans.

Through the years we have built up a level of trust and credibility with our lenders, the courts and the trustee’s offices. Our experience and expertise give us the ability to accomplish what other dealers say is impossible.

FreshStartIndy has become a firm favorite with consumers for straight talk, an honest and upfront approach and by revealing the good, the bad and the ugly of auto finance.

As you have probably already experienced, much of the auto finance industry is frequently highly secretive and filled with deception.

While just barely avoiding crossing the legal line, this part of the industry often exists upon those who will promise you the moon and then fail to deliver.

Since its  launch, FreshStartIndy has been making waves in auto finance circles with its no-nonsense approach to what really goes on behind the scenes in this multi-billion dollar industry.

Our mission is to provide you — the consumer — with hard facts, expert help and advice so you can make the best decision about which auto finance solutions are suited to your particular situation.

Out of frustration over the lack of reliable information available directly to the consumer, we launched this site to provide up-to-date information and assistance for all who have a need for auto financing.

As we all know, the marketplace has undergone some recent and unprecedented changes. While there are countless reputable dealerships and financial sources available today, finding this information in a quick and reasonable fashion can be a tedious and tiresome process.

Our intent is to provide you with this information and to feature solutions that are reliable and trustworthy.

FreshStartIndy is a consumer favorite for straight talk and an unbiased approach to this frequently misunderstood field.

The good news is that in spite of today’s troubled economy, we can still offer you excellent financial solutions for virtually every situation.