What happens to my credit after bankruptcy? 22 Answers as of August 10, 2011

Can I rebuild my credit after bankruptcy? How can I go about getting a better credit score? Will I ever be back on track financially?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Filing bk will have a negative impact on your credit, it will be reported for 7-10yrs.
Answer Applies to: Washington
Replied: 8/10/2011
The Law Office of Jacqui Snyder
The Law Office of Jacqui Snyder | Jacqui Snyder
You can rebuild your credit! I tell my clients that although your credit won't improve by filing, it will make it easier to dig yourself out. Instead of clearing up all your debts before building good credit, you will be able to start right away. Making on-time payments on things that will be reported to the credit agencies helps. If you have a car note or home mortgage that you are reaffirming, that will be reported. Otherwise, it will involve getting a loan after you file. Credit cards will probably have a high interest rate and possibly an annual fee. A couple of my genius clients have found other great options. Some banks offer Christmas Club style loans that are reported to agencies. You would make payments to the bank, then at the end of the term, they pay you the amount you were building up. Another client found a credit union willing to loan him $2,000, which he put into a savings account. Every month, the credit union takes its payment directly from the savings account which he doesn't use except to pay the loan. He will have to pay an additional amount at the end of the term. Discuss these sorts of options with a credit union or bank when you are ready to rebuild your credit. They may have other ways to help you build your credit.
Answer Applies to: Ohio
Replied: 8/5/2011
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
Your credit will take a hit but it can be rebuilt. Most people find it gets better 1 to 2 years later. Ignore the offers you will get in the mail after your bankruptcy discharge. They will be high interest cards with fees. I recommend to my clients that they obtain a secured credit card. This is a credit card that is secured by a deposit you make into the bank. You can charge on it and pay it off each month. As long as the bank reports to the credit bureaus you will be able to establish and rebuild credit without creating more debt.
Answer Applies to: California
Replied: 8/5/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
It depends on you. Your income, how you pay your bills after bankruptcy, and possibly you could get a secured card to start with. No one know where this financial mess will go. I have friends with a 800 score who can't get home loan now.
Answer Applies to: California
Replied: 8/5/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
I have great news for you. For most people, filing a bankruptcy improves their credit! By the time most people come to see us Bankruptcy Attorneys they are several payments behind, or about to default and their credit to income ratio is way off track. The quickest way to rebuild your credit after bankruptcy is to re-affirm a secured loan (like a car) if you are current and can remain current on the debt. A reaffirmation is when you accept personal liability for a debt that would be discharged, as if the bankruptcy didn't get filed for that debt. Most people can successfully rebuild their credit in 2 years and many people can obtain a new car loan within 30 days of receiving their discharge. If you are thinking about Bankruptcy, please speak to a bankruptcy attorney to review your options.
Answer Applies to: New Hampshire
Replied: 8/5/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    Drops noticeably.
    Answer Applies to: California
    Replied: 8/4/2011
    Glen A. Kurtis, P.C.
    Glen A. Kurtis, P.C. | Glen A. Kurtis
    After the bankruptcy case is over you will be surprised at how quickly you get offers for new credit cards. Usually within 6-8 months. If you don't get a new card, you can apply for a collateralized credit card where you deposit say 500.00 with the card company or bank. If you default the bank will take the 500.00. With good payments the bank will return the 500.00 to use, usually within 1 year.
    Answer Applies to: New York
    Replied: 8/4/2011
    Law Office of Dennis Jay Sargent Jr, PLLC
    Law Office of Dennis Jay Sargent Jr, PLLC | Dennis J Sargent Jr.
    Bankruptcy is an opportunity to get a fresh start. There will be limitation initially, but in the long run you will be able to continue living your life and enjoying the benefits of credit again. Depending on what steps you take, your credit score will rebound. Generally a bankruptcy discharge will show on your credit report for 10 years, but that should not prevent you from buying a home or car. Bankruptcy is not the end of the world, most people go on and enjoy life with little impact on day to day life.
    Answer Applies to: North Carolina
    Replied: 8/4/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Bankruptcy is about getting a "fresh start" and part of that is rebuilding your credit. With a clean slate and smart borrowing and spending, you will be able to rebuild your credit in no time - in many cases.
    Answer Applies to: Indiana
    Replied: 8/4/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Yes, you can start rebuilding your credit after bankruptcy. Do you currently have a car loan or mortgage, that starts rebuilding it right away? You can also get a secured credit card and use that to start rebuilding it. Check with your local credit union, many have a special program that is specifically aimed to rebuilding your credit. Good luck!
    Answer Applies to: Michigan
    Replied: 8/4/2011
    Dearbonn Law Offices
    Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
    You lose your credit after bankruptcy. you can rebuild your credit after bankruptcy and you will be back on track financially after a couple of years of establishing fresh financial credibility. Please note that this is not legal advise and should not be construed as such.
    Answer Applies to: Washington
    Replied: 8/4/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Bankruptcy stays on your credit report for a long time, for ten years. The best way to re-establish credit after bankruptcy is to pay all bills on time.
    Answer Applies to: California
    Replied: 8/4/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Yes, you'll be back on track, and faster than if you don't file. All late fees stop. All continuing notices of late fees stop. I suggest living on cash for a couple of years, start a savings acct, maybe apply for a gas card after you check your credit score 2 years later. Use the card and pay it off right away. Establish on-time payments, and don't apply for too much credit. My clients have bought houses 2-3 years after filing.
    Answer Applies to: Virginia
    Replied: 8/4/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Yes you can rebuild your credit after filing bankruptcy. You should use prepaid credit cards and make sure all of your bills are paid on time.
    Answer Applies to: Washington
    Replied: 8/4/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If your credit is bad now then it will get better and you can have good credit in two or three years. If you credit is good now it will get worse but you can reconstruct your credit and have good credit in two or three years. The bankruptcy will show in your credit report for 10 years if Chapter 7 is what you will be filing but that does not mean you cannot get credit. It means you will need to rebuild your credit for the next two or three years.
    Answer Applies to: California
    Replied: 8/4/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    Ironically, the filing of a bankruptcy case generally helps to improve your credit score. If you think about it you will understand why. First, your current credit score is probably low. With bankruptcy you wipe out the debt that is dragging your credit score down. After bankruptcy you have all of your income free of all or most of your debt. In my experience, most people have significantly improved their credit score 24 months after filing a Chapter 7 case.
    Answer Applies to: Alabama
    Replied: 8/4/2011
    The Law Office of Marvin Wolf
    The Law Office of Marvin Wolf | Marvin Wolf
    Immediately after filing, usually a credit score will go down, but if someone generally had good credit and just a sudden decrease in income dropped the score radically, then sometimes a credit score can actually go up after a bankruptcy. That is because there are many factors that go into creating a credit score besides bankruptcy. Each agency has its own secret model for how they compute their scores. It is possible to rebuild credit over the next few years after bankruptcy. There are a few legal tactics to assist in this. Keep in mind that even with a good credit score, regular consumers are finding it harder to get loans for some major purchases. Banks don't want to do lending in a depressed economy. However, I firmly believe that eliminating a dependence on credit is essential to getting back on track financially.
    Answer Applies to: New Jersey
    Replied: 8/4/2011
    Ryan Legal Services, Inc.
    Ryan Legal Services, Inc. | Kevin Ryan
    most of the points deducted off off of the maximum score result from the buildup of all of those late payments each month, together with large open credit balances, judgments, etc. The Bankruptcy Discharge Order results in all of those negative events being reported as "discharged in bankruptcy," in exchange for a notation under the Public Records section of your credit report listing the filing of the bankruptcy, the case number and the date. This notation is assigned a small amount of points that is deducted from the maximum score. In other words, a bankruptcy discharge in most cases causes your credit score to improve dramatically because it literally cleans house on all the bad events that were previously assigned points.
    Answer Applies to: Ohio
    Replied: 8/4/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    As I am sure your lawyer told you, bankruptcy will be on your history for 10 years, so it will affect some things for a long time. Many but not all lenders won't worry about it too much after the first couple years. A BR may improve your credit score, since you can challenge things on your report that show a balance and with your credit usage at zero, many people's scores rise.
    Answer Applies to: Georgia
    Replied: 8/4/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    You can rebuild it soon after your discharge. Most people's credit goes up 12 months after filing.
    Answer Applies to: California
    Replied: 8/4/2011
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