Rebuilding Your Credit After Bankruptcy

If you have recently filed for bankruptcy or are considering filing for bankruptcy you may be concerned about the impact of bankruptcy on your credit and how you can immediately begin to rebuild your credit once your file for bankruptcy. After filing for bankruptcy, an individual's initial instinct will most likely be that he or she will never use a credit card again. Especially, if it was credit card debt that got them in the precarious financial situation that lead to the bankruptcy. Although, with the status of the U.S. economy as it is people may quickly realize that buying items on credit is a near necessity. People in this country assume that having a high credit score is the primary indicator of financial stability, but this is an incorrect assumption. An individual could boast a high credit score but harbor a huge sum of debts and may be in a constant struggle to keep up with payments. This could be a financial disaster waiting to happen. Once a bankruptcy debtor has been discharged of his or her debt at the conclusion of the proceedings they must get a credit report from all three of the most common credit bureaus - Equifax, TransUnion, and Esperion. These reports must indicate that all of the debtor's debt has been successfully discharged. For some, this could take a few weeks or months to occur. If over time, all three reports do not reflect the discharge, the debtor must take steps to ensure that the bureaus amend their reports to reflect the full discharge. After all of the reports reflect the complete discharge of debt, the best way a debtor can begin to rebuild credit is to seek to obtain a secured credit card from a bank. A secured credit card is a credit card issued by a bank which is connected with a money deposit. The credit limit on the card is the amount of money that remains in the debtor's bank account, therefore the debtor cannot charge more money than he or she maintains in the account. The debtor will improve his credit over time as he continues to make timely payments on charges made from his secured credit card. Over time, once the debtor's credit score reaches a certain number he can apply for additional credit cards upon which he can make timely payments to further strengthen his credit score. If you are having trouble dealing with your consumer debt issues and you need to know how filing for bankruptcy will impact your credit and how, once bankruptcy is filed, you can begin to rebuild your credit it is imperative that you seek the advice of experienced legal counsel to advise you on these issues. For more information regarding the impact of bankruptcy on your credit, Chapter 13 bankruptcy, Chapter 7 bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney