Rebuilding Your Credit Score After Bankruptcy

Many families who are overwhelmed by debt often file for bankruptcy to get their affairs back in order. While bankruptcy can help you get out of debt when you are financially struggling, some people decide they don’t want to file because it will have a negative impact on their credit rating. However, it might be better to take a short term hit on your credit score than to let your debts continue to go unpaid, which can result in even more damage to your credit rating and might even jeopardize your family’s financial future.

If you file for Chapter 7 bankruptcy, it will remain on your credit report for 10 years. Although you will have this mark on your credit report, you can still build your rating if you are financially responsible. After you file your bankruptcy, you will likely start to receive credit offers once your debt has been discharged. These offers usually have low credit limits and high interest rates, which is why you need to be cautious and review the terms of each offer before signing up for a new card.

You should also check your credit report regularly for errors. According to a study from the Federal Trade Commission, 25% of U.S. consumers found errors on their credit reports that can impact their credit rating. Once your bankruptcy is finalized, check your report to make sure the accounts that have been discharged are actually marked as “discharged.” Your discharged account should have a $0 balance. You also need to make sure the bankruptcy filing date is correct.

Do you have more questions about rebuilding your credit rating after bankruptcy? If so, contact our attorneys at The Buchalter Law Group today to request your free case evaluation. We are here to assist with all of your bankruptcy matters.

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