Life After Chapter 7: Rebuild Credit After Bankruptcy

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Julie O'Bryan  |  09-10-18 | 2:27pm

After filing bankruptcy, you may feel that your credit record is damaged. You may doubt whether you can get affordable loans or credit. On the one hand, bankruptcy can give you a new financial start. But on the other hand, it can also hinder your future borrowing power. 

Fortunately, we know to you help you rebuild credit after bankruptcy.

If you have filed for bankruptcy, you may be stressed and uncertain about your future. But with the help of an experienced bankruptcy attorney at O'Bryan Law Offices, you can regain control over your finances. Call us for a consultation today.

Check Your Credit Report After Your Case Closes

After your case closes, you may be free from the burden of debt. But it doesn't end here. You will need to monitor your credit reports for several months. Many creditors make the mistake of not removing their debts in a timely fashion. Check your reports often to make sure creditors update your reports.

Dispute Discharged Debts

Discharged debts that appear on your credit can have a negative impact on you. Errors should be reported as soon as you find them. Contact the credit agency to dispute the debt right away.

The longer the error remains on your credit, the longer it will take to rebuild. Being aggressive and proactive in this regard places you in a great position to rebuild credit after bankruptcy.

Make Sure That Reaffirmed Debts Are Still on Your Report

Reaffirmed debts occur when you and the lender sign an agreement before the bankruptcy. Make sure these active debts remain on your report as you check for discharged debts. Active debt includes car payments and secured loans. 

Notably, a reaffirmed debt can be a powerful tool to rebuild credit after bankruptcy. They show some line of credit history and can boost your credit score.

Avoid Accumulating More Debt

After bankruptcy, don't make the same mistakes you made before you filed. Obviously, some things can't be avoided, like health problems and job losses. But you can avoid accumulating more debt. 

Here are some tips to avoid putting yourself in a dangerous financial position again: 

  • Stick to your budget plan.
  • Eliminate bad spending habits.
  • Pay your bills on time.
  • Start a savings account.

Another important thing to remember is you may not be employed forever. Having savings in the case of unexpected situations such as unemployment is key to rebuilding credit after your case closes.

Pay Your Bills on Time

Post-bankruptcy bills can actually help you rebuild credit after bankruptcy. Thanks to bankruptcy discharging your debts, you don't have the added stress from large debts. You can now focus on paying monthly bills.

Arrange your finances and pay bills by their due date. You can do this by organizing them by date and then prioritizing them. Leaving these major bills unpaid can cause late fees and impact your credit.

Rebuilding Credit With New Credit

A new budget and savings plan shows responsibility. Lenders will  see that you are able to make smart and informed decisions about your finances. As a result, you may be able to obtain secured credit cards to help rebuild credit after bankruptcy. 

Contact O'Bryan Law to Learn More About How to Rebuild Credit After Bankruptcy

After bankruptcy, a new financial start is possible. At O'Bryan Law Offices, we have helped many clients through the bankruptcy process, as helped them to rebuild credit after bankruptcy. Contact O'Bryan Law Offices today. With our help, you may be able to regain financial control. 

Contact O'Bryan Law Offices Today