More than a million and a half people file bankruptcy each year. Many individuals who file bankruptcy don’t believe they will ever have credit again. They are wrong! You can rebuild your credit after filing bankruptcy. Credit scores after filing bankruptcy can fall to as low as two hundred points. Taking the appropriate procedures you can rebuild your credit in a year to a year and a half.
Review Your Credit Report
Obtain a copy of your credit report. This can be easily done on the internet. Carefully review the credit report. You should make sure all of your debts discharged in bankruptcy show a zero balance on your credit report. If your credit report is inaccurate regarding zero balances related to debts discharged in bankruptcy, contact the creditor and the credit bureau that gave you the credit report and have them update correct information.
Pay Your Rent On Time
Credit reporting agencies now include rental histories as part of your credit profile. By paying your rent on time on a regular basis after filing bankruptcy you can help rebuild your credit score. Pay your debts not discharged in the bankruptcy. Bankruptcy discharges only dischargeable debts. There are a variety of debts that are not discharged. Among these debts are some taxes owed the federal government, child support, spousal maintenance (alimony), and student loans. If any of these debts survive your bankruptcy, pay them on time. By paying these debts on time it will enhance your credit score.
Obtain A Secured Credit Card
Most secured credit cards require a deposit of either five hundred or a thousand dollars. You then receive credit in the amount of either the five hundred or the thousand you deposited. Use the secured credit card and pay on time. Each time you pay them on time you will receive valuable points towards your credit score.
Financial Discipline
It is necessary for you maintain financial discipline after filing bankruptcy. If you’re disciplined and you pay your debts on time within a year and a half, you will be able to obtain new credit cards all over again. Hopefully this time you won’t end up in bankruptcy again.
The bankruptcy lawyers at the Law Offices of Schlissel DeCorpo have filed hundreds of bankruptcies on behalf of our clients. We file both Chapter 7 and Chapter 13 bankruptcies. The filing of a bankruptcy can be utilized to stop foreclosures from moving forward, eliminate second mortgages, stop debt collection practices and stop creditor harassment.
Bankruptcy is a simple process. After an initial meeting with us we will discuss all bankruptcy options with you. If your house is in foreclosure we will also discuss foreclosure options such as mortgage modifications, litigating defective mortgages and mortgages modification programs.
Call us for a free consultation with regard to either foreclosure defense or bankruptcy related issues.
