Life After Chapter 7

by | Apr 10, 2019 | Bankruptcy

If your financial life has spun out of control, bankruptcy may be able to help you reign things back in. Know, however, that you’ll need two different types of Chapter 7 bankruptcy advice Waldorf MD. You need to understand the bankruptcy process itself and how to rebuild your credit when it’s done. There are several ways to do so.

Check Your Reports

The first step to rebuilding your credit is to make sure your credit files are accurate. Chapter 7 bankruptcy wipes away your debts and gives you a fresh start, but you’ll need to make sure the credit reporting agencies truly did wipe the slate clean. Make sure debt you no longer owe gets updated correctly.

Get Secured Debt

Borrowing after bankruptcy can prove difficult, so start by asking for secured credit. With a secured loan or credit card, you deposit money in the bank and leave it there. The bank then gives you credit in the amount of your deposit. If you deposit $500, for example, you can get a credit card with a $500 limit. Over time as you use the card and make timely payments, your credit score will slowly improve.

Finance With a Friend

If you’re struggling to get credit on your own, consider asking a close friend or family member to cosign a loan with you. Their good credit can counteract your recent bankruptcy and get you approved for a loan you might not get otherwise. As you consistently make loan payments on time, your credit rating will improve. Do this only if you have your finances back on track, however. If you fail to repay the loan as agreed, you and your cosigner will both see your credit scores fall. The goal is to improve your credit, not leave your cosigner in need of Chapter 7 bankruptcy advice Waldorf MD.

Whichever method of post-bankruptcy credit repair you choose, get started right away. Rebuilding your credit is possible, but it takes time. If you get started now, you’ll be able to get credit later when you need it. Visit the website for more information.

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