We understand that facing bankruptcy can feel overwhelming. It is important to remember that bankruptcy is a step along your way to financial freedom. At Levitt & Slafkes, P.C., we believe in empowering our clients with the knowledge they need to rebuild their credit after bankruptcy.
With time, dedication and smart financial decisions, you can rebuild your credit after bankruptcy.
Tips For Restoring Your Credit After Bankruptcy
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Check Your Credit Reports
After your bankruptcy is finalized, you should get a copy of your credit report. You’re entitled to one free report each year from each of the three major credit bureaus (Equifax, Experian, and TransUnion). Visit AnnualCreditReport.com to get the reports. Review your report for errors or outdated information and dispute any inaccuracies.
After your bankruptcy is completed, make sure:
- The accounts that were discharged in bankruptcy are reported as “discharged.”
- The discharged accounts have a $0 balance.
- The bankruptcy filing date is correct.
Dispute any errors that you find.
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Create a Budget and Stick to It
Develop a budget to effectively manage your finances. This helps you avoid overspending and falling into debt again.
Track your income and expenses to understand where your money is going. There are various free online tools and nonprofit organizations, such as New Jersey Citizen Action, to help you do so.
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Establish a New Credit History
To rebuild your credit, you’ll need to establish new credit accounts. Consider the options below as a place to start.
- Get a Secured Credit Card: Apply for a secured credit card. These cards require a cash deposit that serves as your credit limit. They are easier to get than unsecured credit cards and can help you rebuild your credit when used responsibly.
- Become an Authorized User: If someone you trust, such as a family member or good friend, has a good credit history, ask if you can be added as an authorized user on their credit card. This can help improve your credit score.
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Pay Your Bills on Time
Establish a track record of on-time payment for any bills remaining after your bankruptcy. This includes utilities, rent and any new credit card accounts. This can positively impact your credit score.
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Use Credit Wisely
It is a good idea to be thoughtful about using credit, especially after going through a bankruptcy. Don’t charge things you can’t pay off at the end of the month.
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Limit New Credit Inquiries
While it’s important to establish new credit, be mindful of how many applications you submit. Each application can lead to a hard inquiry, which can temporarily lower your credit score. Space out your applications and focus on quality over quantity.
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Be Patient and Persistent
Rebuilding your credit takes time. It’s important that you remain patient and persistent in your efforts.
Conclusion
Recovering from bankruptcy is a journey, but with the right strategies and a commitment to responsible financial habits, you can rebuild your credit and have a brighter financial future. At Levitt & Slafkes, P.C., we’re here to support you every step of the way. If you have questions about your specific situation, please don’t hesitate to reach out.
While it may not seem like it at the time, rebuilding your credit after bankruptcy is possible, and we see clients do so all the time.
Get A Free Consultation from An Attorney At Levitt & Slafkes, P.C.
Are you afraid to file bankruptcy because you are concerned about how bankruptcy might affect your credit? The lawyers at Levitt & Slafkes, P.C., in Maplewood, New Jersey, can answer your questions. Please contact us to set up a free consultation by filling out our online form or calling 973-313-1200.
We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information in this blog is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.