When Filing Bankruptcy Is the Best Option

3 Ways To Get Back On Your Financial Feet After Bankruptcy

Filing for bankruptcy can seem like an epic failure for many Americans. Unfortunately, bankruptcy is the only way for some people to escape the unbearable burdens of their debt. If you are considering bankruptcy, but you are worried that your financial future will be ruined forever if you file, there is hope.

Here are three ways you can continue to build a positive credit rating, even after you file for bankruptcy.

1. Apply for a credit card.

While applying for more debt when you have just declared bankruptcy might seem crazy, taking on a new credit card can be a positive way to begin rebuilding your credit rating. 

To ensure that you do not go back to your old spending habits and blow your money on useless items, look for a credit card with a lower limit. By using your credit card responsibly and paying the balance in full each month, you can begin to establish a history of on time payments. This will improve your credit rating, even when you have filed for bankruptcy.

2. Monitor your credit reports closely.

If you are considering bankruptcy, many of your debts are likely old. When these debts remain on your credit report, they can have a negative impact on your credit rating. After you file for bankruptcy it is important that you carefully monitor your reports and request that any old information be removed.

As a general rule, late payments, public records, and collection accounts can remain on your reports for up to 7 years. If your credit reports are showing any of these types of accounts that are older than 7 years, file a dispute to have these negative items removed.

3. Avoid credit repair scams.

You may have seen advertisements for companies offering to repair your credit quickly after you have filed for bankruptcy. There is no quick fix when it comes to establishing a positive credit rating, and investing in these companies could end up costing you in the long run.

Be wary of companies asking for money upfront, and if you have doubts about the legitimacy of the company in question contact, your state regulatory agency for further information.

Getting back on your financial feet after bankruptcy is not impossible. All it requires is careful monitoring of the negative accounts on your credit report and dedication to paying any new creditors you acquire on-time and in-full. Work with a bankruptcy attorney like Brent Sorenson & Associates, P.C. for more help during and after your bankruptcy.