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Can I Rebuild My Credit Score After Filing For Bankruptcy?

Have you filed for bankruptcy? Are you worried about how it will impact your credit score? If so, our expert New York bankruptcy lawyers of Law Office of Simon Goldenberg are here to help you. We have years of experience in bankruptcy law and consumer protection. We have knowledge and results you can trust—but don’t just take our word for it. Scroll over to our clients' testimonials to see what our satisfied clients have had to say about us. If you’d like to experience this satisfaction firsthand and rebuild your credit score, contact us at (888) 301-0584 or contact us online.

Make Scheduled Payments

As you may know, now that you’ve filed for bankruptcy, no bankruptcy chapter will discharge all of your debts. You’re still on the hook for student loans, child support, and spousal support. You can raise your credit score if you catch up to any payments you’re behind. Once you’re all caught up, continue making monthly payments to any creditor you still owe before the deadline passes for that month. Usually, after a bankruptcy approval, you can renegotiate your monthly payment amount to your creditors so that they’re more in line with your current income.

Secure A New Credit Card

It is challenging to secure a new credit card once you file for bankruptcy, but this suggestion is not counterproductive. Securing a new credit card benefits you in two meaningful ways: it shows that you’re a responsible borrower, and you will raise your credit score if you pay down your credit card on time. Don’t worry. You won’t need to put an excessive amount of money on your new credit card. Starting with a low amount, such as $100 or $50, is probably best. Then, continue to pay the bill in increments (if the card company has a monthly minimum) or before the deadline.

Remember that this credit card can be a card from a retail store. Usually, the cashier will ask you if you’d like a credit card to the store, and they’ll let you know how much credit a lender approves you for. Sometimes, you may be approved for only $100, but don’t let this discourage you. The purpose of getting the card is to show you can make monthly payments at the minimum monthly amount.

Maintain Low Credit Card Balances

Naturally, after securing a new credit card, make certain that you keep the balance on the card low. A low balance shows that you’re using less credit than what’s available, demonstrating how financially responsible you are. This makes lenders view you more favorably.

Report Your On-Time Payments To Credit Bureaus

Did you know that creditors and lenders don’t have to report your on-time payments to credit bureaus? Considering how they’re prone to report your debt, this may seem unfair. You should consider reporting your payments yourself. You can report information that doesn’t stem from credit card payments, including paying your utility bill, rent, and phone bill, as well. As long as they’re timely, they’re bound to be in your favor and increase your credit score.

Start A Savings Account

Although this won’t directly impact your credit score, having a savings account can reduce the likelihood of you needing to take out another personal loan, thereby putting yourself in even greater debt potentially. You don’t need to set aside an excessive amount of money per check to put into your account. You can start with as little as $5 per check (although starting with $25 to $50 is more practical and helpful). Whatever amount you set aside, remember that the point is to create a safety net so that you have a form of relief should you find yourself in another financial bind.

Also, starting a savings account will help you manage your funds more wisely. You’ll have to regularly set aside a specific amount of money, and you won’t be able to access it until an emergency (e.g., hospital bill, funeral expenses) occurs. Over time, you’ll become committed to understanding what’s a pressing need and what is only a want. When it’s only a want, it’s easier for you to turn it down. Then, you can add that extra money that you’re also not spending by distinguishing needs from wants to your savings account.

Do I Need A Bankruptcy Lawyer To Rebuild My Credit Score?

Typically, you’ll hire a reputable bankruptcy lawyer to advise you as you consider which bankruptcy chapter to file. But you may feel doubtful that you need a bankruptcy lawyer to rebuild your credit score. However, the truth of the matter is that it’s always in your best interest to hire a legal expert whenever you’re in dire straits or about to make a decision that can have long-term effects on your life. Rest assured, good credit is essential for you to enjoy many opportunities from housing to employment to vehicular purchases.

Thankfully, a skilled bankruptcy lawyer knows which steps you can take to rebuild your credit as quickly as reasonably possible. A bankruptcy lawyer can better review your unique financial hardship and see what can be written off, put on a payment plan, and more. So, don’t wait.

New York Bankruptcy Attorneys To The Rescue

Law Office of Simon Goldenberg helps clients resolve financial problems through bankruptcy or other legal avenues. Our lawyers have spent years refining our practice, staying up to date on recent developments on the bankruptcy scene. We will carefully review your case to determine the best options for you and will help you obtain a financial fresh start. To consult with Law Office of Simon Goldenberg, call (888) 301-0584 or contact us online today.