Repairing Your Credit After Bankruptcy Is Possible
Many people who are considering filing for bankruptcy are concerned about how doing so will affect their credit. The truth is, filing for bankruptcy will harm your credit. However, it is possible to rebuild your credit.
At the Law Office of Jennifer Casey, in The Woodlands, Texas, I am committed to helping my bankruptcy clients improve their credit. As your attorney, I will provide you with information and resources to make the best of the fresh start that bankruptcy protection offers you.
Life After Bankruptcy
The extent of the damage bankruptcy causes to your credit depends on how strong your credit was before you filed. Whether your credit slips slightly or plunges dramatically, the good news is it is possible to repair it.
Here are three ways you can start rebuilding your credit after bankruptcy.
- Pay your bills on time. Payment history is one of the major factors credit bureaus consider. Paying your bills and any debts you have remaining after bankruptcy in a timely matter is very important.
- Keep your outstanding debt low. Almost as soon as you file for bankruptcy, credit offers will appear in the mail. Eliminating or reducing your debt has given you an attractive debt-to-income ratio. But, these offers will have high interest rates and fees, and some may even be from predatory lenders. It can be wise to avoid borrowing money after bankruptcy until you qualify for better rates and are comfortable taking on debt again. If you have zero debt remaining after bankruptcy, you may consider getting a low-limit, secured credit card from a reputable bank. Repaying this card in full and on time every month can help your credit score.
- Monitor your credit report. You have the right to receive one free credit report each year from the major consumer credit reporting bureaus. By checking with each of these companies, you can monitor your credit report for errors and correct them as necessary. This will prevent mistakes from hindering the credit you are working hard to rebuild.
Schedule A Free Consultation To Learn More
Consultations are available during regular business hours and after hours by appointment. As a bankruptcy lawyer, I represent clients throughout Harris County and Montgomery County.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.