Credit Repair in Illinois
You've probably seen ads from "credit repair" companies promising to fix your less-than-perfect financial history. While these companies make it seem like a great way to rebuild your score, credit repair is actually a scam. Many of these so-called repair companies are really identity thieves who illegally sell Social Security numbers. They may also take your money and run, doing nothing to improve your score.
This scheme is another in the long list of scams that have made their way around Illinois. As the largest bankruptcy filer in Illinois, DebtStoppers helps people in Chicago deal with the consequences of these types of frauds every day. If you're looking for a real solution to your money problems, call or text DebtStoppers today to schedule a free one-on-one financial evaluation with one of our experienced Illinois bankruptcy lawyers.
Lies that Illinois Credit Repair Companies Tell
If it seems too good to be true, it probably is. Credit repair businesses in Illinois are full of promises, offering to or create a new financial identity for you. They may also promise to “negotiate” with your creditors to get your outstanding balances lowered. All you have to do is make your monthly bill payments directly to the “repair” company, and no longer to the creditor. The result? Your creditors don’t get paid and the amount you owe continues to climb.
These scams may also guarantee they can "erase" the following types of derogatory marks from your report:
- Late or missed payments
- Charge offs
- Loan defaults
- Collection accounts
The truth is that no one can legally remove correct negative information from your report. If the info is accurate, there's nothing that anybody can do about it. It will be on your report until it "falls off," which usually takes 6 or 7 years.
If there's information on your report that is incorrect or out of date, you can dispute it and request a free investigation. Any service that a repair company can legally provide, you can do yourself — for free!
There is no legal way for one of these businesses to erase derogatory marks from your report. You'll either be caught up in their criminal activity or will pay them to do diddly squat. No matter what, your score isn't changing. We don't recommend that you walk away from credit repair companies; we recommend that you RUN!
Credit Repair That Works
Filing for bankruptcy in Illinois may be the best way to improve your credit. Bankruptcy laws were enacted to serve as a life preserver for people drowning in debt. Filing Chapter 7 or Chapter 13 can get you the relief from creditors that you so desperately need.
While bankruptcy can strike a significant blow to your score, it won't go down all that much if it's already low. In fact, the positive impact to your credit often outweighs the initial hit.
Here are some of the short-term and long-term ways that bankruptcy can increase scores in the short and long term:
- Reclassifying debts as "discharged in bankruptcy"
- Improving your debt-to-credit ratio
- Laying the foundation for building a positive financial history
Getting Credit Again After Bankruptcy
Creditors are more likely to offer credit to a person who has eliminated debt with a bankruptcy. You can get a credit card or car loan shortly after filing.
Buying a Home After Bankruptcy
Because you need good credit to qualify for a mortgage, your current debt situation has permanently stalled your home ownership plans. Bankruptcy can actually get those dreams back on track.
- In a Chapter 7 you can get an FHA mortgage after 2 years
- In a Chapter 13, you can get a mortgage after being in the case for 1 year
There are many self-styled “credit doctors” doing business here. Don't fall for their tricks and lies . To get an honest assessment of your debt and a trustworthy, legal plan to combat it, call or text DebtStoppers today. Our experienced Illinois attorneys have helped thousands of people find a real fresh start through a DebtStoppers bankruptcy plan.
DebtStoppers is the only law firm in Illinois offering a true $0-Upfront Chapter 7. Call or text us at 312-913-0630 to schedule a free consultation and start down the road to financial recovery.