Improving Credit After Bankruptcy
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When you’re dealing with mounting debt, filing for bankruptcy can help you regain the financial security you need to move forward with your life. Still, bankruptcy is a taboo subject and many people steer clear of this option because they’re worried about how it will affect their credit score.
While a bankruptcy filing stays on your credit record for 7 to 10 years, you can regain good credit again after bankruptcy.
Here are some steps you can take to improve your credit after bankruptcy.
Correct Reporting Errors
After you’ve filed for bankruptcy, you’ll want to find out what your current credit score is. Many times, people end up with better credit than they had before filing. Additionally, you’ll want to regularly check with reporting agencies to ensure discharged accounts have zero balances and that your bankruptcy date is correct.
Get a Credit Card
One way to start rebuilding your credit is with a credit card. Credit cards can be secured or unsecured. If credit card usage got you into trouble in the first place, you may want to go with a secured credit card. A secured credit card requires you to make a deposit in the amount of the line of credit, so you’re secured by your own money. While an unsecured credit card has no deposit requirements. Apply for one and pay your bill on time to help reestablish your credit. Do not get a card that has a set-up fee or annual fee.
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Set a Budget
To make sure you don’t fall back into debt, create a budget that includes all of your income, expenses, and bills. Then, stay on budget by entering your finances every week.
Pay Your Bills on Time
When you file for bankruptcy, you may be left with some debt, such as taxes, child support, and alimony. These are called nondischargeable debts. You’ll want to be diligent about paying back your nondischargeable debts, your utility bills, taxes, and other bills on time, or else it will impact your credit score.
Rebuild Your Credit Score After Bankruptcy
If you’re ready to file for bankruptcy or want to know your options, the bankruptcy attorneys at OlsenDaines are here to help. We understand how overwhelming and stressful it can be. We have offices throughout Oregon and Washington with experienced attorneys ready to answer any questions you may have about bankruptcy. Give us a call today for your free initial consultation!Back to Bankruptcy Attorney