Many people who need to file for bankruptcy may be hesitant at first, due to the risk of enduring a serious impact to their credit score. While it is true that bankruptcy can remain on your credit report for a decade and lower your credit score, allowing your debts to continue to increase can also seriously damage your credit rating.
Those who want to know how to improve their credit score after filing for bankruptcy can benefit from talking with an attorney. They can understand how stressful, frustrating and even emotional it may be to know just how much money you owe and have not been able to pay back.
Here in the article below, we have talked about how to manage and raise your credit score rating after being approved for bankruptcy:
Check Your Credit Score on a Regular Basis
An attorney is likely to recommend to clients that they should check their credit score on a regular basis. This can be particularly crucial for those who have filed for bankruptcy quite recently. You may want to write down a list of your debts which you included when filing for bankruptcy, and check the status in the months following to see that they have been discharged accordingly.
If you applied for Chapter 7 bankruptcy, then these debts should no longer have a delinquent status and eventually show a balance of zero. If you see an error has been made, follow up with the credit report issuer and your original lenders so that mistakes can be corrected.
Work on Re-Establishing Credit
In general, bankruptcy falls off your credit report in around 7-10 years, depending on whether you filed for Chapter 7 or Chapter 13 bankruptcy. Do keep in mind that if your debt accounts have not been established for more than ten years, then it may appear as if you have no recent credit history.
An attorney can give you advice on when to apply for credit after being discharged of your debts. But, the sooner you start building credit again, the better. If you are nervous you will not be able to handle new debts, start small. You may even want to consider finding a financial advisor or taking a class to build your financial skills, so you feel more confident managing money.
It is normal to feel some degree of anxiety when first applying for bankruptcy. While this may lower your score quite a bit initially, it can aid you in the long run if you have thought it all the way through. A bankruptcy lawyer Phoenix, AZ relies on can consult with you about your current financial status, to see if bankruptcy is the right choice for you. Please do not hesitate to reach out to us, so we can schedule your first free appointment. We hope to hear from you today, so we can get started working towards your financial stability.
Thank you to our friends and contributors at Kamper Estrada, LLP for their insight into bankruptcy and credit scores.