How Do I Rebuild My Credit After Bankruptcy?
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How Do I Rebuild My Credit After Bankruptcy?

How Do I Rebuild My Credit After Bankruptcy?
February 10, 2015

One of the greatest uncertainties that people have when they go through a bankruptcy is the question of how they will ever be able to rebuild their credit? That is a common question and at the law office of Kevin M. Schmidt we know how important this question can be. We also do everything we can to help answer this question and help our clients begin the credit rebuilding process in order to get back on their feet. So what are some of the things you can do to start rebuilding your credit after filing for bankruptcy? 

When you file for bankruptcy, you will take a hit on your credit score. Also, getting a significant loan could be much more difficult for a while after you file until you’ve had a chance to rebuild your credit. While borrowing money and using credit often contribute to a person being in a position of needing to file for bankruptcy, using credit is one of the main ways to rebuild your credit score. However, you have to use credit responsibly.

Anytime you make a payment on your debts, no matter what kind of debt it is, your credit score will get a positive boost. That’s because your creditors report all your payments to the credit agencies, which are then listed on your credit report. Therefore, anytime you make a payment, it will show possible new creditors that you are responsible when it comes to paying off your debt.

In order to start using credit more responsibly, you must first obtain new credit. One of the best ways to obtain credit after filing for bankruptcy is to open up a new credit card account. Many of these accounts will have low credit limits but if you use them responsibly, you can begin to build your credit history again. However, you have to use them wisely and only make purchases you can afford to pay for. You don’t want to get right back into the same financial problems that lead to bankruptcy in the first place.

In order to use your new credit wisely, you need to create a budget and stick to it carefully.  Again, you should only spend or borrow as much as you can afford to pay off.  Lastly, it’s also a good idea to set up automatic payments so you never risk missing any of them.  You can learn more about rebuilding your credit after bankruptcy by clicking here.  If you have any other questions regarding bankruptcy or rebuilding your credit, please contact the certified bankruptcy attorney, Kevin M. Schmidt, at 219-756-0555, or click here. We also serve Hobart, Gary and Crown Point.

 

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At the Law Office of Kevin M. Schmidt, P.C., we offer a free consultation during which we will examine the facts of your case and advise you on how best to proceed

Our Phone Number219-756-0555
Contact via Emailinfo@kmslawoffice.net
Our Location200 E. 80th Place
Suite 110
Merrillville, IN 46410
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We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code. This information is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Past results and testimonials are not a guarantee, warranty, or prediction of the outcome of your case, and should not be construed as such. Past results cannot guarantee future performance. Any result in a single case is not meant to create an expectation of similar results in future matters because each case involves many different factors, therefore, results will differ on a case-by-case basis.