How Do I Repair My Credit After Bankruptcy?
Best Bankruptcy Lawyer in Oakland
When a person declares
bankruptcy, that individual's bankruptcy remains on his or her credit reports for
seven to ten years from the bankruptcy filing. During this time, the debtor's
credit report will inevitably take a major hit, especially in the few
months immediately following the bankruptcy filing. Fortunately, there
are numerous steps that debtors can take to dramatically improve their
credit scores well before their seven to ten years are up
and even after one year following discharge. With the right action plan
in place, you can greatly minimize the damage that occurs to your credit
after bankruptcy and build your way back up to financial stability sooner
rather than later.
At The Bankruptcy Law Firm, we have Oakland bankruptcy lawyers who can
guide you through the process of repairing your credit. We can help you
set up an action plan that meets your specific needs and circumstances.
In the meantime, here are a few general tips that people should take after
they file for bankruptcy:
Make payments on time: The more you remain consistent with paying your bills on time, the more
positive credit activity you generate for your credit report. As time
passes, this ongoing positive activity will help your credit score to
rise, and your bankruptcy will eventually have less and less impact on
your credit. It may be helpful to set up monthly reminders for yourself
or to sign up for automatic payments for your bills. It can take a few
years before you start seeing a significant impact of this recovery step.
Stick to your budget: Without a fresh financial mindset, you can easily gravitate back into
the cycle of debt you were trapped in before. To keep control of your
debt, set up a strict budget for yourself and stick to it. Avoid purchasing
things you can't actually afford.
Don't completely abandon credit: While you don't want to overdo it on the credit, you also don't want to
end up with absolutely no credit activity, as this in itself can harm
your credit score. You should maintain a modest amount of credit so that
you 1) keep your credit score generating, and 2) show lenders that you
can be trusted with credit. Do, however, avoid reaching your credit card
limits so that you can keep your debt-to-credit ratio low, as this plays
a factor in your credit score.
Regularly check your credit reports: After your bankruptcy, you will need to check your credit reports to make
sure that the debts you had discharged are showing up with zero balances.
You should ensure that there is no misreporting related to your debts,
such as debts that were not part of the bankruptcy being reported as discharged,
or the listing of accounts on your credit report that you do not recognize.
If you find inaccurate information, you should immediately dispute it
with the credit bureaus.
These are just a few of the various steps that you can take to get back
on financial track after your bankruptcy filing.
Contact The Bankruptcy Law Firm to consult with an experienced bankruptcy attorney in Oakland, California
who can help you get started on your financial recovery - 877-969-7482!