Before trying to repair credit after bankruptcy, make sure you are well informed… Filing for bankruptcy can be a very difficult and trying time for individuals who have to go through the process; it can scar the credit score of that individual, and can be very difficult to obtain lines of credit after you have filed for bankruptcy. Bankruptcy leads to bad credit ratings in the consumer market, however, it is possible to rebuild your credit score after you have filed bankruptcy. It is a long and tedious process, but it is possible and if you work at it, you can improve your score back to a respectable, and for some consumers, excellent credit score.
The first tip to rebuilding your credit is to hire an attorney who can properly compute all details of the bankruptcy proceeding. A lawyer knows the ins and outs of the industry, and can properly lead you through the process of rebuilding your credit because they know the laws, in turn can offer you the best bankruptcy advice. – Although not advisable, if you are doing it on your own (don’t want to pay an attorney), get a reputable guide in the market to help repair your credit rating.
The next thing you should do is obtain all three of your credit reports (Equifax, Trans Union, and Experian), from the credit reporting agencies. Make sure to study them entirely and extensively, looking for errors and omissions in the report which can further put a damper on your score. If you do come across errors send an appeal, with a copy of the errors, to your creditors (as well as if there were any references to good credit which have been omitted from your report). Next file a claim with the FTC, under laws provided for in the Fair Credit Reporting Act.
Next you should open a savings account in the bank, no matter how small a deposit you initially make. Make regular payments until all your debts are paid off, to all creditors (secured and unsecured). Use the savings account to manage these expenses, and help keep finances in order. It does take some time for your score to improve, a period of about six to eight months is the typical time frame in which you will start seeing improvements.
Making sure to work with creditors, having a set savings account, having the right guidance (bankruptcy attorney), and making a concious effort to improve your finances, will all help rebuild your credit. Although it does take some time, there are no miracle cures, it is a possibility to repair your credit rating after you file for bankruptcy. Making sure to keep on top of things, and making the best efforts on your behalf to work with creditors, are key to your success.