Rebuilding Your Credit

How Do I Rebuild Credit After Bankrtupcy?

Some people think that filing for bankruptcy will leave a black mark on their financial records. In particular, people wonder how their credit rating will be affected. The truth is that, far from being a black mark, bankruptcy is a great way to rebuild credit. It is seen as a good-faith attempt to get your finances in order. At StraightBankruptcy.com, our lawyers are devoted to helping people throughout the United States get back in control of their finances. We would never encourage bankruptcy if it threatened your future financial situation. Call us at 800-353-5792 and set up a consultation with an experienced bankruptcy lawyer in your community.

Rebuild My Credit with a Chapter 13 Bankruptcy

When going through a Chapter 13 bankruptcy, you are making payments every month. A bankruptcy court consolidates all your debts and gives you a total that you pay to the court each month. This total is usually significantly less than you would pay otherwise, because it is made to be a payment you can handle with your current income. Just keeping up with your Chapter 13 proceedings repairs your credit score on a gradual basis. And when you are done and your debts are discharged, you can immediately begin rebuilding your credit further by using one open line of credit (gas card or credit card) responsibly. This meaning that your use the line of credit and pay it in full each month.

Rebuild My Credit with a Chapter 7 Bankruptcy

As for a Chapter 7 bankruptcy, you can start repairing your credit immediately after the bankruptcy proceedings are complete. You just need to get a credit card or gas card, and as mentioned above, pay it in full every month. In a 6-month period, you should see a significant improvement in your credit score. After 1 year to 1 years and 6 months you should be able to buy anything your need and get a good interest rate on the financing.