What can I do to Improve My Credit After Bankruptcy?
While many consumers worry about the aftermath of filing for personal bankruptcy, it is critical for you to know that you can start improving your credit almost immediately after you receive a bankruptcy discharge. For many debtors in Illinois and across the country, Chapter 7 bankruptcy can allow for a fresh financial start, while Chapter 13 bankruptcy can allow for debt reorganization and can, in many cases, allow homeowners to avoid bankruptcy. Yet many debtors hold off on filing for bankruptcy because they assume it will be difficult to rebuild credit after a consumer bankruptcy.
We want to emphasize that you can rebuild your credit after filing for bankruptcy, and the following are some key steps to get you started. If you have additional questions or need assistance with your bankruptcy filing, you should seek advice from an experienced Oak Park consumer bankruptcy attorney.
Apply for a Retail Credit Card or a Secured Credit Card
In order to rebuild your credit after a consumer bankruptcy filing, you will need to begin obtaining credit. Since obtaining a traditional credit card can be difficult in the immediate months following your bankruptcy filing, one of the best ways to do this is to seek out a secured credit card or a retail credit card, according to an article in Credit.com. These types of credit cards can be easier to obtain than traditional credit cards, and they can allow you to begin rebuilding your credit. However, it is important to talk with your attorney about seeking out either of these types of credit cards (or credit cards more generally) if you are in the middle of a Chapter 13 bankruptcy repayment plan. You will typically need to ask for the court’s permission to take on a credit card during the period of your repayment plan.
Consider a Personal Loan
Personal loans can help you to rebuild your credit after bankruptcy, as can a Self Lender Credit Builder Account. You should speak with your bankruptcy attorney about whether this is a good option for you, and how you can move forward with a loan that can allow you to rebuild your credit.
Stay Current With Any Existing Accounts
In addition to opening new accounts, you need to do everything you can to stay current with any existing accounts—whether those are existing accounts because you are in a Chapter 13 bankruptcy case, or because you have assumed certain debts as part of your bankruptcy case, which you will continue to owe and continue to pay on after you receive a Chapter 7 bankruptcy discharge.
Avoid Loans With High Interest Rates Unless You can Avoid the Interest
After filing for bankruptcy and receiving a discharge, one of the last things you want to do is to assume new debt that comes with high interest rates. You will put yourself back in the same difficult cycle that you were in prior to the bankruptcy when you could not afford to pay off your debts and you were overwhelmed by the amount you owed. If you can, avoid any debt that comes with interest, and certainly avoid any type of credit that will result in high interest rates.
Contact a Bankruptcy Lawyer in Oak Park
Do you need help with your bankruptcy case? One of our experienced Oak Park consumer bankruptcy lawyers can assist you. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
Federal Crackdown on Abusive Debt Collection
Why Was My Bankruptcy Discharge Denied
We want to emphasize that you can rebuild your credit after filing for bankruptcy, and the following are some key steps to get you started. If you have additional questions or need assistance with your bankruptcy filing, you should seek advice from an experienced Oak Park consumer bankruptcy attorney.
Apply for a Retail Credit Card or a Secured Credit Card
In order to rebuild your credit after a consumer bankruptcy filing, you will need to begin obtaining credit. Since obtaining a traditional credit card can be difficult in the immediate months following your bankruptcy filing, one of the best ways to do this is to seek out a secured credit card or a retail credit card, according to an article in Credit.com. These types of credit cards can be easier to obtain than traditional credit cards, and they can allow you to begin rebuilding your credit. However, it is important to talk with your attorney about seeking out either of these types of credit cards (or credit cards more generally) if you are in the middle of a Chapter 13 bankruptcy repayment plan. You will typically need to ask for the court’s permission to take on a credit card during the period of your repayment plan.
Consider a Personal Loan
Personal loans can help you to rebuild your credit after bankruptcy, as can a Self Lender Credit Builder Account. You should speak with your bankruptcy attorney about whether this is a good option for you, and how you can move forward with a loan that can allow you to rebuild your credit.
Stay Current With Any Existing Accounts
In addition to opening new accounts, you need to do everything you can to stay current with any existing accounts—whether those are existing accounts because you are in a Chapter 13 bankruptcy case, or because you have assumed certain debts as part of your bankruptcy case, which you will continue to owe and continue to pay on after you receive a Chapter 7 bankruptcy discharge.
Avoid Loans With High Interest Rates Unless You can Avoid the Interest
After filing for bankruptcy and receiving a discharge, one of the last things you want to do is to assume new debt that comes with high interest rates. You will put yourself back in the same difficult cycle that you were in prior to the bankruptcy when you could not afford to pay off your debts and you were overwhelmed by the amount you owed. If you can, avoid any debt that comes with interest, and certainly avoid any type of credit that will result in high interest rates.
Contact a Bankruptcy Lawyer in Oak Park
Do you need help with your bankruptcy case? One of our experienced Oak Park consumer bankruptcy lawyers can assist you. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
Federal Crackdown on Abusive Debt Collection
Why Was My Bankruptcy Discharge Denied
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