Debt Consolidation, Bad Credit, Bankruptcy, and Foreclosure

Why Do People File Bankruptcy: It Doesn't Mean You've Failed

admin — Wed, 28 May 2008 15:21:59 +0000

The misconception about bankruptcy is that people that can't pay their debts for one reason or another use it as a way of cheating the system. Others believe that you can be prepared for anything that happens to you and therefore bankruptcy shouldn't be provided.

In either case, these answers are wrong. The federal government put in place the ability to file because people make mistakes, face tragedies in their lives and they often have little to no control about the actions of others.

If you are considering bankruptcy, it is essential to explore the reasons why this may be good to you. Many people file one time in their lives and live a productive, good credit life afterwards. Other people do abuse the system, but new laws which have been put in place can help to stop these abuses.

The credit industry is often hurt by such abuses, which in turn hurts every consumer that uses credit with increased fees. If you are suffering from financial hardship, you should consider if you need to file.

What Are Reasons For Bankruptcy?

There are many reasons why people file. Federal law dictates that the debts should be a financial hardship beyond control. Here are some of the most common reasons people file.

Discharge of debt: This gives people a fresh start. This type of bankruptcy is common as it allows a free and clear slate. They could be under a lot of financial stress due to credit card misuse or there could be another underlying problem that put them in this position.
Stop foreclosure: Foreclosure is a process in which the mortgage lender moves to take back the home from the owner who is not making monthly payments as agreed on it. Filing Chapter 13 bankruptcy can help these debts to be reorganized to make it easier for the mortgage payments to be made. Chapter 13 does stop the foreclosure process as long as it is done before the sale of the property.
Medical bills. With or without health care coverage, medical bills can easily pile up and get to the point of being overwhelming. Many people use bankruptcy to help them to either eliminate medical bills or to reduce them significantly.
Loss of employment: Many people have to file bankruptcy because they have lost their job and they can no longer make payments as they were doing. While the financial situation before their employment loss may have been okay, after the loss many people struggle with high amounts of debt they can't pay.
Garnishments: Chapter 7 bankruptcy will end some types of garnishments. If wages are being garnished because of debts that need to be repaid, these debts can be eliminated. In addition, filing bankruptcy can sometime help people to stop utilities from being turned off or from losing assets such as cars (when they file Chapter 13.)
Stop creditors. For some the reason for filing bankruptcy is as simple as stopping creditors from calling. Creditor harassment has been shown to be the deciding factor for people who are struggling with debt repayment. Having the financial difficulty that goes along with it is important though, as you need to be facing dire financial situations to qualify.

There are many other reasons to consider filing bankruptcy. Every person's situation is unique, which is why attorneys have been instructed by the new bankruptcy laws to understand why the individual has been in this position. When there are situations that are beyond control, or you simply have made mistakes and can't get out of them, filing bankruptcy can be a good move.

Discover What The New Bankruptcy Law Means To Your Bankruptcy Case.

admin — Tue, 20 May 2008 15:09:16 +0000

For those consumers planning to file bankruptcy, new laws are in place that could make the process more difficult. These laws went into effect to help stop the abuses of the system. Prior to their establishment, consumers could file bankruptcy more often and with fewer questions as to why.

Yet, this does not mean that those who are suffering from extreme financial strain can't file bankruptcy. Rather, you'll need to match the requirements of the new law. If you have filed in the past, realize the process has changed significantly.

What's Income Have To Do With It?

If you have a high level of income, chances are good you could be forced to file Chapter 13 bankruptcy before filing Chapter 7. In Chapter 13 bankruptcy, the debts you owe are simply restructured to make the more affordable to pay monthly, but you will be required to pay them down.

The new laws require that some consumers who have an income over the median income to take a means test. This test is designed to evaluate the amount of disposable income you have, after allowed expenses and debt payments are removed. If your income is not enough to cover all expenses, then you will be able to file Chapter 7 bankruptcy (liquidation and discharge.)

What Counselor?

Another requirement of the new bankruptcy laws is the requirement that you'll need to work with a debt management counselor before you are able to file bankruptcy. The United States Trustee's Office has determined which consumer credit counseling programs are approved.

You'll need to work with them to first try to repay your debt. The counseling service is designed to help you see other solutions to bankruptcy. These counselors can help establish a repayment plan that could help you avoid filing. The court system will require that you show evidence of any plan that is put in place, and the effort you have made to follow it, before they will allow you to file bankruptcy.

In addition to this, should your filing process go through, you will also be required to take a personal finance management class. You will not be able to have the debts discharged until this certification of attendance of this class is presented to the court.

I Need An Attorney?

An attorney is always a good thing especially in cases where filing bankruptcy under this new law is required. But, the downfall here is that many attorneys have raised their fees. The process of filing bankruptcy has gotten much harder for them, and much more time consuming. Most attorneys have compensated by increasing the fees they charge.

In addition to this situation, the new bankruptcy law has put in place a number of requirements for the attorneys. The attorney now must sign a legal document stating the accuracy of all the information that you provide to them. They then have to do more investigating as well as spend more time on your case. That costs more.

There are other changes to the bankruptcy laws as well. For example, the number of allowed disposable income you'll be allowed to have to file Chapter 13 has decreased, meaning you'll need to live on less to file Chapter 13. Property is often valued differently as well. In some areas, requirements for the states have changed as well (for example, you may need to live in the state longer to qualify for using their filing laws.)

There is little doubt the process of filing bankruptcy is more challenging than ever, but it has also been one of the most successful ways to get a fresh start. It will continue to hold that value for consumers, but only those that have the ability to work through these requirements.

Bankruptcy: What Is it And What Does It Really Mean?

admin — Wed, 14 May 2008 14:58:43 +0000

Bankruptcy is a process designed by the federal government in an effort to help people, both businesses and consumers, to get rid of their debt. There are several types of bankruptcy that can be filed. In some types, the debts are paid out of assets owned by the company or person.

In other types, the debts are reconstructed to help the person or company repay the debt in a way that they can do. Sometimes, they are called liquidations while other times they are referred to as reorganizations. In either case, they are a serious, and financially life changing event that should not be taken lightly.

Chapter 7, 11, 13: What's With The Numbers?

There are several types of bankruptcy, each defined by a number that is representative of where the item is in the tax code. Here's a look at the differences in each of these.

Chapter 7: This type of bankruptcy is called liquidation. Any owned property is sold or liquidated to get the value from it. There are some types of property that are exempt from bankruptcy.

This exempt property changes from one state to the next. Once the allowable property is sold, the value from it is used to pay down debts, as the court determines. Once everything has been liquidated, any remaining debt is forgiven, in most situations.

Chapter 11: This type of bankruptcy is one for businesses. It is used for corporations and partnerships. Those that file this will file for a reorganization of their debts. Like Chapter 13, you will need to pay down your debts over a period of time, while all property is kept. Generally, the business is kept up and running, but debts are restructured so they can be repaid over time.

Chapter 13: This is a reorganization type of bankruptcy in which the debts you have are reorganized in such a way that it helps you pay them down faster and without as much added interest. In this type of bankruptcy, you will keep your property. You'll need to establish a repayment plan with the court, which generally requires that the debt is paid off over a period of two to five years, depending on your needs.

Common Questions

There are always questions about bankruptcy. Here are some of the most common:

Will I lose my home? Every state defines what property is allowable to keep during a bankruptcy (chapter 7) but in most cases, it is considered a secured debt. If you are in good standing with that lender, chances are good you'll be able to keep the home as long as you keep making payments. Some states will require you to liquidate the value of the home if there is a substantial amount of value in it, to help repay your lenders.
Do I need an attorney? With the new bankruptcy laws that have been put in place, it is now not only common but necessary for you to have an attorney to help you through the process. They will help you meet guidelines and timelines and they will help you qualify to be a filer, as many people are finding out they do not qualify due to new laws.
Will it destroy my life? Bankruptcy is a serious undertaking which will place a black mark on your credit history for the next ten years. It will be more expensive to use credit and you may find it harder to make purchases on credit.

IN many situations, bankruptcy is the best thing for you. Be careful with using it though. New laws only allow you to file bankruptcy in dire situations.

Why Do People File Bankruptcy: It Doesn't Mean You've Failed

admin — Thu, 08 May 2008 05:45:09 +0000

In either case, these answers are wrong.

The federal government put in place the ability to file because people make mistakes, face tragedies in their lives and they often have little to no control about the actions of others.

What Are Reasons For Bankruptcy?

There are many reasons why people file. Federal law dictates that the debts should be a financial hardship beyond control. Here are some of the most common reasons people file.

· Discharge of debt: This gives people a fresh start. This type of bankruptcy is common as it allows a free and clear slate. They could be under a lot of financial stress due to credit card misuse or there could be another underlying problem that put them in this position.

· Stop foreclosure: Foreclosure is a process in which the mortgage lender moves to take back the home from the owner who is not making monthly payments as agreed on it. Filing Chapter 13 bankruptcy can help these debts to be reorganized to make it easier for the mortgage payments to be made. Chapter 13 does stop the foreclosure process as long as it is done before the sale of the property.

· Medical bills. With or without health care coverage, medical bills can easily pile up and get to the point of being overwhelming. Many people use bankruptcy to help them to either eliminate medical bills or to reduce them significantly.

· Loss of employment: Many people have to file bankruptcy because they have lost their job and they can no longer make payments as they were doing. While the financial situation before their employment loss may have been okay, after the loss many people struggle with high amounts of debt they can't pay.

· Garnishments: Chapter 7 bankruptcy will end some types of garnishments. If wages are being garnished because of debts that need to be repaid, these debts can be eliminated. In addition, filing bankruptcy can sometime help people to stop utilities from being turned off or from losing assets such as cars (when they file Chapter 13.)

· Stop creditors. For some the reason for filing bankruptcy is as simple as stopping creditors from calling. Creditor harassment has been shown to be the deciding factor for people who are struggling with debt repayment. Having the financial difficulty that goes along with it is important though, as you need to be facing dire financial situations to qualify.

When there are situations that are beyond control, or you simply have made mistakes and can't get out of them, filing bankruptcy can be a good move.

Filing For Bankrupty. Chapter 7 or Chapter 13?

admin — Thu, 01 May 2008 08:26:04 +0000

Filing Bankruptcy: Chapter 7 Or Chapter 13 May Not Be Your Decision

Bankruptcy is a method of repaying debt, and with that comes some choices. First, you'll need to find an attorney to help you work through the process.

With the new laws in place for filing bankruptcy, the steps to filing have become more difficult, making it harder to file on your own.

You may not have much of a choice in which type of bankruptcy you file, but this will be based on what your personal financial situation is in. When you meet with your attorney, they will help you determine the right course of action.

What Is Chapter 7 Going To Do For You?

Chapter 7 bankruptcy is the liquidation of assets to repay any debts you have. Any remaining debts will be discharged. This is the most common type of bankruptcy because it will eliminate debt altogether.

You should file this type of bankruptcy if you don't have enough disposable income to pay down your debts, you are facing large medical bills or you have other valid reasons for being unable to pay debts off.

Generally, Chapter 7 is the best way to go if you qualify. To qualify, your attorney may need to give you a means test. This test is simply a very comprehensive look at your financial situation. The goal is to determine if you are making enough disposable income to cover your debts or not. If you make too much, you will not be able to file Chapter 7 bankruptcy, but will need to work through Chapter 13 instead.

Not all types of debts can be discharged through bankruptcy, though. Child support, alimony, most taxes and student loans are unable to be filed through discharge, and you will still need to repay them.

Your financial hardship is closely looked at, as attorneys must sign off on the information you provide being accurate.

What Is Chapter 13, Then?

There are several reasons to file Chapter 13 bankruptcy instead of Chapter 7. In Chapter 13, your debts are not discharged and you do not lose your assets. Rather, a debt repayment plan is put into place that will help you to pay off the debts you have, with less pressure and cost than with working with your attorneys directly.

The court system will identify your financial situations, design a repayment plan and help you pay off your debts in two to three years.

You should consider Chapter 13 if you make too much to file Chapter 7. In addition, if you have a sizable amount of assets you wish to keep, Chapter 13 can help you do that. If you are facing foreclosure or repossession of these assets, Chapter 13 will stop those legal proceedings but only enough for you to get back on track. It can't stop the asset title holders from repossession if you don't keep up on payments.

In Chapter 13, you will need to establish a repayment plan that works for you, but also is agreeable to the lenders you have debts with. You will likely work with a debt counseling company to help you (the court system must approve the company.)

These professionals will help you with payments, planning a budget and much more. You'll still need to take the time to make that monthly payment, though.

Choosing which type of bankruptcy is right for you can be a challenge. Plenty of people file Chapter 13 and later end up in Chapter 7. Yet, many other people do well and avoid having to have their debts discharged through Chapter 7 bankruptcy when they file Chapter 13.

In either case, the goal is to find the best way to get your finances under control.

YES, There Is Life After Bankruptcy

admin — Sun, 27 Apr 2008 04:17:32 +0000

Living After Bankruptcy: Establishing Credit Is An Unsteady Step

After you have filed bankruptcy, you will find a wide range of things happening to you.

First, you'll need to go through the process of filing bankruptcy, which will include working with an attorney to determine eligibility, working through Chapter 13, in some situations and even working with a debt counseling company.

These laws are in place to help make it more difficult to file bankruptcy, and they should teach you something about personal finance as well. Yet, you could make some costly mistakes right after your bankruptcy has been filed.

The Offers Come Rolling In

Some credit card lenders prey on those people who do not have access to good credit card lines. Since you have just had your debts discharged, they know it will be years before you can possibly file bankruptcy again.

Therefore, they are willing to extend some credit to you. Just months after you file, you could start seeing these offers; should you use them or not?

If you have set your mind against using any credit in the future, be sure to shred those offers and forget about it. If you realize the importance of having good credit, though, you do want to consider some aspects.

For some people, using one of these credit cards can be helpful at restarting your credit future. You do need to be careful about doing this though.

Check out the credit card offer carefully, read the terms

Many of these lines of credit have high membership fees, annual fees and transaction fees

Many have a very small credit limits.

It is not uncommon to have to pay all of these fees upfront on the line of credit before being able to access the credit line for your needs. This may mean an out of pocket cost of several hundred dollars just for agreeing to the credit card.

For those unable to get any other type of credit, this is a good start. Six months after you have filed bankruptcy, start using these credit cards, very minimally. If the credit limit has a line of credit of just $300, use it for gas purchases and pay it off in full every month.

If you carry a balance make it very low. Make all your payments on time. This will help you reestablish your credit history.

What's Next?

To keep building your credit after filing bankruptcy, you'll need to make wise decisions going forward. Here are some tips.

After a year or so, you'll get better credit card offers. Look for those that offer no annual fee or other fees. When these start coming to you, that means your credit is doing better.

Use secured credit cards which report to the credit agency. These are backed by a deposit you make on the line of credit and therefore you can't overspend. Because they report to the credit bureaus, you can establish a repayment history.

Do consider asset based loans, such as a car loan or even a home loan. Some lenders will allow you to borrow for these needs as soon as 18 months to two years after filing bankruptcy.

Don't get behind on any payments. Make them on time every month. Keep the amount of debt you have low.

Check your credit history every year. Even better, get one free credit report every four months from one of the credit bureaus. Since you are entitled to one free report from each of the three bureaus each year, you can check your credit every four months.

Work hard to reestablish your credit after bankruptcy and it will pay off. In a few years, you'll be able to qualify for many loans and you'll work your way at improving the long term effects of your bankruptcy.

When Foreclosure Is Unavoidable: Saving Your Credit

admin — Thu, 24 Apr 2008 16:35:03 +0000

You are in the foreclosure process. Job loss, problems with your health or an inability to repay your loan due to an adjusted interest rate are all reasons why you may find foreclosure simply unavoidable. What you may not realize is that there are several options available to you when you no longer can make your monthly payment to your lender.

When foreclosure is going to happen, there are several ways you can get out of your loan and still save your credit rating, in most situations.

If you can't keep your home, call your lender and ask about any of these programs or options that may be available to you:

Selling Your Home

Sometimes, you can sell your home and use the funds from the sale to repay the loan you are holding. In order for a sale to work, though, you'll need to consider:

How much you owe the lender
How much the home is worth
Any closing costs or agent fees associated with closing the home
Equity that you may or may not have in the home
The amount of time you have before the foreclosure process will be too far gone to get out of.

For those that can do so, selling your home is the best way to avoid the foreclosure process but also to keep your credit in line. You may want to do everything you can to pay your mortgage until your home sells, though. Hire an experienced real estate agent who can aggressively market your home to get it sold soon enough.

Pre Foreclosure Sales and Short Sales

You may hear about these in the news or in some marketing materials you may get during the foreclosure period. Here, the property is sold to a buyer but the amount is not enough to pay off the loan in the full amount. In order for this to work, and be considered payment in full for the loan, your home loan lender has to approve the short sale.

Pre foreclosure home sales are happening more often, but you will need to try and get a sale for the home first. Often, once agreed upon, the lender will give you a short amount of time to find a buyer and will help with some costs for liens against your home currently.

Assumption:

Although rarely used, if you can find a buyer for your home to simply assume the loan for you, you can avoid the foreclosure process. In an assumption, the buyer takes over the mortgage that you have. Sometimes this can be done when the loan documents you have say the home is unable to be assumed or is considered non assumable. Your lender will help you with working through the process.

Deed In Lieu

Yet another option that you may have to avoid the foreclosure process is this one. Here, you simply hand over the deed of your home to your lender and they accept it as payment in full for your loan. Most lenders will work with this option but only after you have taken the time to try and sell the home at full price prior. Additionally, some liens against the home will still need to be paid in full before this process can be done.

As you can see, there are various methods available to you to help you get out of your home's mortgage without having to file bankruptcy. None of these options are simply solutions, though, which can make the process very tiresome and long.

Yet, for most people not having to face foreclosure is well worth the extra work to get the process done.

Common Bankruptcy Myths And What It Really Does For You

admin — Mon, 21 Apr 2008 11:00:43 +0000

Bankruptcy is able to help millions of people, but it can't do everything for you. If you believe it is the way to solve all of your financial problems, you could be mistaken.

In fact, some loans, such as student loans, can't be filed under bankruptcy.

More so, some people can't file bankruptcy, such as those that make too much money or those that have filed in the recent past.

There are many myths about filing that you should know about before you meet with an attorney to discuss your case.

Bankruptcy: It Does Help

Bankruptcy does have several benefits:

It can help eliminate unsecured debts you owe, such as credit cards

It can help to stop creditors from calling your home and stop collection activities

It can help eliminate some liens, such as those creditors place on your home

It can give you a fresh start at financial life

It can help stop foreclosure on your home, when filing Chapter 13

If you are in these situations, talk to an attorney to find out if bankruptcy is for you.

In many cases, it is the ideal method for getting that fresh start.

Bankruptcy: What It Can't Do

There are various aspects of filing bankruptcy that are not as good, though. In fact, there are many thing bankruptcy simply can not do for you.

It can't save assets you have from creditors repossessing them.

For example, secured debts like your mortgage can not be stopped if you stop repaying those loans. If you own a vehicle that is behind in payments, you'll need to get back on track with those payments or the loan holder can repossess the asset.

It can't stop child support or alimony payments you may have. If you are paying child support or alimony, you will not be able to discharge these debts. These debts do not change in any fashion.

Even if you were to file Chapter 13, the restructuring of your debt would still need to include help for these payments.

It can't stop student loan payments. You will still need to meet the obligations of your student loans.

There are some loans that can be affected, but this is rare. The only situation that will allow discharge of student loans is when you can prove to a court of law that repaying the loan will cause you "Undue hardship."

It can't stop you from repaying tax debts. If you the state or federal government, it will not be able to help you to eliminate these debts.

In some rare cases, there are options available, which your attorney can help you determine if you qualify for.

It can't establish new credit for you. You should never count on a bankruptcy to be a good way to get out of old debt and into good debt.

In most situations, you'll find it difficult to have any credit cards at all, as well as some mortgages, for several years after bankruptcy. In fact, the bankruptcy is a public record which will stay on your credit history for ten years.

If you are filing Chapter 13 bankruptcy, some of these requirements can be avoided. For example, filing Chapter 13 can stop foreclosure on your home, or repossession of some of your assets, but only long enough for you to begin repayments as the repayment plan will outline.

Talk to your attorney about your bankruptcy case and how effective it will be at helping you establish a new financial lease on life.

For many, it can prove to be an ideal method of going forward, for others, problems will still exist.

Where Should Your Debt Payment Go: Important- READ THIS FIRST.

admin — Sun, 20 Apr 2008 16:25:19 +0000

You have several credit cards and other debts piling up. You want to put your money where it is going to make the most significant difference possible. Where do you put it? There are several ways that you can pay down your debt. Various financial experts may sway your decision in one way or the other.

For those with a large amount of money owed on several lines of credit, consider the options below, and choose the one that fits your lifestyle the best.

First Step: Establish An Emergency Fund

Regardless of what method of paying down debt you plan to use, you'll need to set aside at least a small emergency fund. Usually this will need to be at least $1000. This money will help you pay for any emergencies or shortages you come up with during the course of the money.

Take some time to keep paying off your debt with minimum payments until you get the emergency fund in place. That way, you do not have to worry about those car breakdowns or emergency doctor's bills. With this bit of security, you can commit to not using credit cards until your debt is paid off in full.

Get It Done Inexpensively

The most financially sensible way of paying down debt is to pay down the credit card or other loan you may have with the highest interest rate first. For example, if you have three lines of credit, choose the one that has the highest interest rate first to start working to pay down.

The reason for this is simply because you need to pay down debts costing you the most first. If you have a credit card with 20 percent interest and one at 21 percent interest, you may not think that difference matters. Over time and on your balance, that one percent could be hundreds of dollars.

Therefore, find the card with the highest interest rate and start going at that one the hardest, with as much money as possible each month. Once it is gone, go with the second highest interest rate, and so on. You'll pay the least amount of money on your debt with this method.

Seeing Results

Unfortunately, most people lose steam in the process of paying off debt and find themselves stuck. If you are someone that would like to see actual motivation through the process, you may want to consider looking for the lowest balance credit card and start working at paying that down. While it will cost you more to do this, many people find that this is one of the best ways to stay focused.

If your lowest credit card balance is $200, when you do pay it off, you feel like you've accomplished something. That is very important motivation that will keep you aiming high. Because the balance is lower, you'll find it easier to pay it off.

Over time, you'll pay it all off, but this way may work best for those who want to see results quickly. This method will cost you a bit more, but it may keep you on track to saving more.

Which is the right method for you? There are many different types of methods to paying down debt. Yet, you'll need to define which the right way is for you. The goal is to simply pay off those credit cards.

Whichever method you choose, be sure that you commit to it and make it work. Over time, you'll see rewards as you can say you've paid off yet another line of credit. Don't stop with the credit cards either!

Your Credit Report Can Improve Your Bad Credit

admin — Fri, 18 Apr 2008 14:51:20 +0000

Bad credit is the downfall of many people. They have poor credit because of mistakes they've made in the past and they are facing countless problems now. If this is you, you may be having trouble getting new lines of credit, getting affordable rates on your home loan, or even getting a job.

Yet, you can improve your bad credit. A good place to start working on it is with your credit report. Many people don't realize that this is an ideal place to find out what's going on with your credit and to improve it.

The fact is, if you have bad credit, it is costly you dearly. Your credit report is the basis of your credit score, which is what most lenders use to determine if they should lend you credit or not. If you do have a credit score that is low, it could partially be due to errors on your credit report.

Errors are found on 80 percent of all credit reports, and most people don't realize it. The good news is that you can get them off your credit report as well. Doing so, may help improve your bad credit, especially if those negative marks aren't yours or shouldn't be there.

How To Check Your Report

Have you checked your credit report lately? If not, you'll want to do that as soon as possible. The federal government ruled that every person in the country that had a credit report had the right to have a free copy of their report each year. If you have bad credit, you may want to consider paying for a subscription service which will monitor your credit more often. These subscriptions can be expensive in some situations, but can help you know what's happening with your bad credit throughout the process.

You should get a copy of your credit report from three credit bureaus: Transunion, Equifax and Experian. You are eligible to get one free report each year from each one of them.

Hint: Since there are three credit bureaus and each contains mostly the same information, plan to monitor your credit report all year long by using one report every four months. That way, you have a current report to check out more often without it costing you anything. For those with bad credit, this is very helpful.

To get a copy of your credit report, visit each of the three company's websites. You'll need to establish a log in as well as your identity through a series of questions. Once verified, you'll be able to download a copy of your report.

Take a close look at your report to see where the bad credit problems are. The good news is that it is fairly easy to see problems and most of the time, the report itself will have a detailed section outlining any problems you may have. It identifies what is causing your bad credit and how you can improve it.

There are many things that could e causing your bad credit including late payments, lack of experience, having too much debt to your income, or having too much debt compared to available credit on your lines of credit.

Look for errors and get them removed, especially if they are causing your bad credit. If you have closed accounts, or find accounts that are not yours, report them to the credit bureau. They will remove anything they can't verify from your account. To do this, follow the directions provided to you by the company. Removing errors from your credit report can help you improve your bad credit. These errors could be costing you considerably.