When you file for bankruptcy, it can feel like all hope is lost. It can be a devastating event in your life and oftentimes, people feel as if they will never come back from it.
We’re here to tell you that you can leave all of that behind when you repair your credit. There are ways for you to pick yourself up from the financial wreckage and rebuild your credit so that you can regain your financial freedom once again.
In this article, we’ll show you how to repair your credit after filing for bankruptcy. Let’s take a closer look at the steps involved.
Check Your Credit Report For Inaccurate Information
Everybody makes mistakes from time to time. And, the credit bureaus and other creditors are no exception. Sometimes, they make a mistake on your social security number, the spelling of your name, add an incorrect or outdated address, or on a more serious note, incorrect information about your bankruptcy record.
If there is any inaccurate information about your bankruptcy record, then this must be fixed immediately. And, in some cases, their mistake can even lead them to remove the bankruptcy file from your credit report entirely! Of course, this would be the ultimate goal, but having a bankruptcy removed from your credit report isn’t always their go-to move.
Usually, they will simply fix the incorrect information while keeping your bankruptcy file in place. It’s also important to check your credit report regularly since it’s not uncommon for creditors to continue to add negative information on your credit report even after you’ve filed for bankruptcy.
If you have a discharged debt that shows as “active” on your credit report, then this is a major problem that must be corrected immediately. You should no longer have any outstanding debt balances after having filed for bankruptcy. Your account should show up as $0. Make sure that this is the case before continuing with your credit report efforts.
Keep Paying Off Your Non-Bankruptcy Account Debts
Just because you filed for bankruptcy, it doesn’t mean that you’re out of the gate. You still have to make on-time payments to the credit card companies or other outstanding creditors to rebuild your credit.
If you have student loans, for instance, you must pay them back. These loans typically cannot be discharged. If you have any accounts that are still active, not paying them back with wreak havoc on your credit score. Make sure that you’re paying down any existing debts and loans on time to avoid any other negative consequences.
Also, make sure that you’re not ignoring any outstanding debts that are not displayed on your credit report. Especially if it’s a new account, like a credit card, it may not appear on your credit report. This does not mean that you don’t have to pay it back. This is a common misconception that can land you in even more trouble. Repay all of your debts regardless if they appear on your credit report or not.
Take Steps To Build Credit
It’s always recommended to hire a professional credit repair company because they have the knowledge and experience to deal with the credit bureaus the right way. Also, who has the time to deal with credit repair? Nobody, that’s who. Hiring a professional credit repair expert allows you to free up your time to focus on the things in life that matter most.
A legitimate, reputable credit repair agency will go through your credit and payment history to determine exactly what you can afford to pay back each month. They will advise you to make payments each month to slowly pay down the balance of your remaining debt.
Securing new credit is a major hurdle that many people endure after having filed for bankruptcy. It’s a critical step in rebuilding your credit. By law, you cannot declare bankruptcy again for another 7 years after having filed once. If you received a discharge for a chapter 7 bankruptcy case, then you can’t receive another one for 8 years. This is why some credit card companies approve certain bankruptcy applicants.
Typically getting a newly secured credit card, your interest rates will increase, making it more difficult to pay off. However, a credit repair expert can help you find the right credit card to help you rebuild your credit and improve your credit score. And, a higher interest rate may not be so bad in the end. In fact, it may help you towards improving your credit score even faster. As long as you make the payments on time, you’re in good shape.
Hire A Credit Repair Pro
When rebuilding your credit, you need a pro. A high-quality credit repair agency can help you comb through your credit history with a fine-toothed comb and identify any errors, mistakes, or inaccuracies within your credit file to dispute with the credit bureaus.
They will look through your credit card or loan history to determine which debts take priority over others, ensuring that you can always make your monthly payments on time.
At My Credit Advice, our experts are dedicated to turning your bad credit into good credit through a series of steps and strategies. We don’t do anything with half measures and we don’t take any shady or illegal shortcuts. We are a legitimate, reputable credit repair company that cares about fixing your credit.
Let us lend a helping hand in repairing your credit after having filed for bankruptcy. All is not lost for you and you’re not alone. We can help. Reach out to us so that we can formulate an in-depth, comprehensive credit repair strategy customized just for you.