The Office of Russell Gary Small, P.C. COVID -19 UPDATE: In these uncertain times all of us at The Office of Russell Gary Small, P.C. wants to reassure you that we are open and continue to work for you. We can meet with you via telephone or video conference, and communicate electronically. We are here for you, and encourage you to reach out to us with any questions or concerns. Stay safe and healthy.

You Deserve Financial Relief

Russell G. Small and Kenneth E. Lenz

How can you repair your credit after filing for bankruptcy?

On Behalf of | Jul 29, 2021 | Bankruptcy

If you have debts that you are unable to pay, are facing a foreclosure or are being harassed by debt collectors, you might consider declaring bankruptcy. And while bankruptcy can negatively impact your credit, the good news is you can always repair your credit score — and the process is probably easier than you realize.

Depending on the type you are filing for (Chapter 13 or Chapter 7), bankruptcy remains on your credit report for either 7 or 10 years. During this period, bankruptcy’s impact on your credit score will lessen over time. In the meantime, there are a few proactive steps you can take to improve your score. Here are some of them:

1. Routinely monitor your credit

Paying close attention to every detail of your credit is an important part of recovering from bankruptcy. It is important that every entry on your credit report is accurate. Close monitoring of your credit will also help you identify errors and potential signs of identity theft before things can spiral out of control. 

2. Adopt healthy credit habits

Adopting and practicing prudent financial habits is crucial if you are looking to rebuild your credit after bankruptcy. These include paying all your debts in time, staying on top of your bills, planning for emergencies, living within your means and, of course, giving it time. 

3. Get a co-signer

Looking to buy a new car or appliance? That might call for some form of credit. Unfortunately, your present situation may be a stumbling block. This is where a co-signer comes in. You can consider asking a friend or family member with an impressive credit score to be your co-signer. Taking a credit builder loan that lasts a couple of years can lengthen your credit history and help you rebuild your credit score. However, it is important that you maintain a flawless payment record for the loan. 

Bankruptcy laws were created to help individuals who are overwhelmed with debt make a fresh start. Taking deliberate steps to fix the damage caused by bankruptcy on your credit score can help you truly get back on your financial feet again. 

Share This