Post-Bankruptcy

One of the foremost concerns of any person considering bankruptcy is the effect that filing Chapter 7 or Chapter 13 could have on their credit. Many people mistakenly assume that it is impossible to repair or rebuild credit following any chapter of bankruptcy.

While a bankruptcy does indeed initially have a negative impact on a person’s credit score, the damage is still temporary. I mprovement can be made with a committed and determined effort. In fact, some people with particularly poor credit ratings can even see higher scores later on.

Cincinnati Lawyer Looks at Ways to Rebuild Your Credit After Bankruptcy

If you feel overwhelmed by your current debt situation and have been considering filing bankruptcy, do not let unfounded fears about your credit score prevent you from taking the necessary action. Steiden Law Offices guides clients in Cincinnati, Southern Ohio and Northern Kentucky and through the entire Chapter 7 and Chapter 13 process from start to finish.

Our Cincinnati bankruptcy attorneys not only help people from Kenton County, Hamilton County, and Boone County get financial relief but they also rebuild their credit after the bankruptcy. Call right now to have our firm review your case during a free, confidential consultation.

Overview of Northern Kentucky Post-Bankruptcy Credit Rebuilding

Check Your Credit Report

As soon as you have completed your bankruptcy filing, you should immediately review your credit report and make sure that debts have truly been discharged. Do not rely on your creditors to report debts as having been discharged.

You are essentially the only person who is concerned about your credit score. Thus, y ou are the only person with any interest in making sure the information on your credit report is correct.

You are entitled to a free credit report every year. You should use this opportunity to check for any kinds of errors on your report. If there is any kind of mistake, you should contact the credit bureau to dispute the error and have it corrected.

Get New Credit after a Bankruptcy

Despite the common misconception that people who file bankruptcy will never be able to get credit again, there are typically multiple avenues for debtors to explore following a Chapter 7 or Chapter 13 case. In many cases, people are practically bombarded by offers for new credit cards.

One of the first steps you should take after the bankruptcy is opening a secured credit card. A secured credit card is a type of card that a bank will require a cash deposit to open, but proper use of such card can still be beneficial for your credit record.

If you are able to get an unsecured credit card, it will probably have extremely high interest rates. Regardless of the types of cards you are offered or approved for, you should not take out any more lines of credit than you truly need. If credit card debt was the primary reason you filed for bankruptcy in the first place, you do not want to get yourself into the same situation again.

When you are in a more comfortable position financially in a few years, you may consider taking out a more significant loan such as an auto loan.

Make All Payments On Time, Every Time

When you do open a new line of credit, make sure to use it wisely. This means that you should avoid spending all the way up to your newly established limits. Try to use less than 10% of the credit line and avoid going over 30% at any given time. Only buy what you can afford.

When it comes time to making a payment, try to pay off everything at once. If for some reason you are unable to pay the entire monthly balance, at least be sure to make the minimum payment. Above all, make sure that your payment is not late.

Post-Bankruptcy Credit Rebuilding Resources

Identifying Fraud, Abuse, and Error in Personal Bankruptcy Filings — The three major credit firms—Experian, Equifax and TransUnion—are required by federal law to provide one free credit report to consumers annually. This is the website that those firms established, and it is the only one you should use. Avoid the multitude of other websites created by companies that will try to make money by getting you to sign up for “credit monitoring” or other services.

Credit Repair: How to Help Yourself — This page on the Consumer Information section of the Federal Trade Commission (FTC) website provides some helpful information for people seeking to repair their credit. In addition to an overview of your rights, it also has a link to signs of credit repair scams as well as ways to report them.

Find an Ohio Bankruptcy Lawyer for Help Rebuilding Credit

Is concern about how bankruptcy would affect your credit report playing a major role in your decision to file Chapter 7 or Chapter 13 bankruptcy? Make sure that you are getting the best possible advice by discussing your options with experienced legal counsel.

Our bankruptcy law firm has offices in Cincinnati and Maineville in Ohio and Covington and Florence in Kentucky.

Steiden Law Offices has been helping clients in Cincinnati and Northern Kentucky for more than 25 years. Our bankruptcy attorneys can evaluate your case as soon as you call to set up a free, no obligation consultation.