3 Ways To Repair Your Credit After Chapter 7 Bankruptcy
by Veeti Lepisto
When you are so far in debt that you can't really see any way to get out of it, filing for Chapter 7 bankruptcy may be a good option for you. Doing that will allow you to set up a plan that will let you pay back your creditors and start to get out of all that debt. However, filing bankruptcy can also cause you further credit problems. One reason for that is that it can take up to 10 years for a Chapter 7 bankruptcy to come off your credit history. But, your credit may already be bad from all the debt that you are in, and the bankruptcy can give you a chance to repair it. So, how can you repair your credit after a Chapter 7 bankruptcy?
Watch Your Credit Report
After you file for bankruptcy, you will want to start keeping a close eye on your credit score. That will give you the chance to know if anyone is accessing it as well as let you know if your efforts in rebuilding your credit are working. You are going to want to aim for a score of 650, which is the lowest number that is considered fair. Fair credit will allow you to do things like get better interest rates on loans and credit cards.
Apply For Secured Credit Cards
The best way to start repairing your credit is to have a way to prove that you can make payments. A secured credit card with a low limit is a good way to do that. When you have a secured credit card, your credit card company sets up a special secured account. You will then deposit a specified amount of money into that account. Your credit limit is based on how much money you put in that account as well as what your income is. The goal here is to make small purchases that you can pay off very quickly.
Get Some Credit Counseling
Credit counseling can help you learn to set up budgets and stick with them. You can also learn smart money handling strategies that will allow you to start to build a good emergency fund and repair your credit at the same time.
Applying for Chapter 7 bankruptcy is one way that you can get out of unmanageable debt. It also gives you a chance to rebuild your financial life so that it is better and stronger than it was before. Contact a legal professional such as Julie A Philippi Attorney at Law for more information.
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About Me
Several years ago, one of my best friends married the guy of her dreams. This tall, quiet man adored my friend. Almost every week during their courtship, he presented her with a beautiful, fragrant arrangement of flowers. At the time, my friend’s mom joked that her home resembled a funeral home because of all of the flowers her boyfriend sent her. After the happy pair married, they purchased a new home together and quickly began running out of money, meaning that he could no longer afford to give her the flowers she loved. They even discovered they couldn’t afford to pay the monthly mortgage. After only a few years of marriage, they filed for bankruptcy. On this blog, you will discover the ways a reputable bankruptcy attorney can help you successfully recover from financial ruin.