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

Effect of Bankruptcy On Your Credit Score

Filing for bankruptcy will be reported on a person’s credit report and will have an impact on their credit rating. However, it may not be nearly as bad as they think and could even improve their score. Once someone’s bankruptcy is processed and reported on their credit score, it will unfortunately be listed for 7 years if it was a Chapter 13 bankruptcy and up to 10 years if it was a Chapter 7 or 11. This will negatively impact their score if prior to the bankruptcy they had a stellar credit score to begin with. However, the fact is many people who file bankruptcy do so because they are unable to make on time payments to their creditors in the first place and already have taken many negative hits on their credit report. As such, their credit score has already been negatively affected and filing for bankruptcy will not actually lower it significantly . In fact, depending on the amount of bad debt the person has, filing for bankruptcy could even make their credit score better as bankruptcy wipes clean all of the person’s dischargeable debts, leaving a better credit score despite having a bankruptcy listed on their credit report. If you are considering filing for bankruptcy you will be addressing many issues concerning your credit score and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding your credit score, bankruptcy, foreclosure or consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.

Discharge All Your Debt to Protect Your Future Credit by Disclosing All Debts in Bankruptcy Filing

One of the most obvious benefits of filing for bankruptcy is having your debts discharged and one of the most common concerns is the effect of bankruptcy on your credit score. When your debts are discharged, you no longer have to repay the debt and your creditors lose the right to seek repayment. In order to successfully discharge your debts, however, you must be extremely cautious when preparing your petition as you will need to satisfy the scrutiny of both the court appointed trustee and judge who are assigned to your case. It is required that you provide information about each creditor and details regarding each debt. Failure to disclose essential information could lead to painful consequences such as the debt not being discharged. For example, a U.S. Bankruptcy judge in Newark recently refused to discharge a person’s $40 million debt when he failed to keep records required by the Bankruptcy code and grossly impaired the ability of the assigned trustee to perform his duties. Filing for bankruptcy certainly hurts your credit score in the short term, but at least it will allow you to start fresh by eliminating your debts. Not filing properly could lead to a bankruptcy filing which leaves you with serious debts a damaged credit report, so it is imperative to disclose accurate information when filing. If you are considering filing for bankruptcy you will be addressing many issues concerning discharging your debts and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding discharging your debts, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, foreclosure, consumer debt, credit card debt or debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.