Filing for bankruptcy in Kentucky is an opportunity for people to revitalize their finances and get rid of overwhelming debts. Contrary to what many believe, bankruptcy is not a crushing blow to credit scores. While it will impact a person’s credit, the effects do not remain forever.

Credit reporting errors can happen post-bankruptcy and complicate a number of factors for people seeking a loan.

Identify inaccuracies

Experts recommend that people periodically check their credit score to verify the accuracy of reported information. According to U.S. News, discrepancies in people’s personal information are often the result of simple clerical errors. However, the outcome is not so simple for people who cannot secure loans because credit companies report outdated or incorrect information.

When people file for bankruptcy, information about their actions will remain on their credit score for 7 to 10 years depending on the type of bankruptcy. However, sometimes credit companies do not correctly update information which can cause inaccurate information to prevent a person’s score from improving despite their responsible financial decisions.

Dispute errors

When people regularly check their scores, they can recognize errors and report them in a timely manner to avoid ongoing issues. According to the Federal Trade Commission, when people want to dispute an error they should contact the credit reporting companies.

People should highlight discrepancies. They should also include additional evidence that proves the inaccuracies that appear on their scores. Credit companies have up to 30 days to investigate disputes. If what people report is true, credit companies must correct the information and provide a copy of the correct credit report to the inquirer.