Filing for bankruptcy can be an important first step towards giving yourself the fresh start you deserve. When you file bankruptcy and get relief from your bill problems, you no longer owe any money to your creditors. You no longer have to suffer with the continuing delinquencies.
In order to preserve your newfound financial stability, you must take care to rebuild your credit and avoid common pitfalls. If you take some simple steps to rebuilding your credit after bankruptcy, your credit score will start to rise. After as little as 18-24 months, your credit report can be a positive one.
Improving Your Credit Score
There are a number of things you can do to improve your credit score with a bankruptcy discharge on your credit report, including the following.
· Acquire a Secured Credit Card. It may seem counterintuitive, but in order to rebuild your credit, you will need to take out loans and repay them on time. A secured credit card gives you credit up to the amount you have in the bank that issues the card.
· Take out an Installment Loan. An installment loan is any kind of a loan that requires monthly payments, such as a car loan. You must make your payments on time every single month in order to use your installment loan to rebuild your credit.
· Check and Correct Your Credit Report. After your bankruptcy has been discharged, check your credit reports. You are looking for errors: debts you have repaid but still appear and any other types of mistakes. Contact the credit agency where the mistake appears to have it corrected.
In many ways, once you have completed a filing for Chapter 7 or Chapter 13 bankruptcy your financial future is brighter. It is important that you avoid the mistakes and traps that could get you in trouble again. King & King is dedicated to helping clients file for personal bankruptcy and rebuild their lives afterwards. For a free initial consultation, contact our office at 404-524-6400.